'Oberoi Realty' shares hikes upto 16% than other key Realtors in market

Real-Estate stocks present a strong comeback in recent sessions following a sharp sell-off in the first week of October. This impressive rebound began when the RBI shifted its policy stance from a not peaceful ‘withdrawal of accommodation’ to a more neutral position having raising hopes for potential rate cuts.

As the real-estate is major beneficiary of lower interest rates, investors’ sentiment towards these stocks has improved. The gains have further active by healthy quarterly results from real-estate companies which have been reported an annual growth in sale bookings for the September quarter which is driven by strong consumer demands for the residential properties especially in the segment of luxury.

Over the past six years of trading, the Nifty Realty index increases from 1,020 to 1,080 representing a 6% rise. In this period, Oberoi Realty shares outpoured by 16%, while Godrej Properties, Prestige Real Estate Projects and Raymonds saw gains of 10%.

In addition to this, stocks such as DLF, Sobha and Mahindra Lifespace Developer have reunited 6% during the six trading sessions.

In spite of the unpromising ‘Shradh’period falling in the month of September of this fiscal year (as oppose to October in FY24) the real-estate companies reported the significant rise in the booking rates.Macrotech Developers who sells their properties under the’Lodha’brand has achieves its highest ever quarterly pre-sales at Rs.4,200 crore by marking a 21% year-over-year(YOY)growth.

In the Q2, Godrej Properties have reported a booking values of nearly Rs.5,200 crore up 3% YOY from the sale of over 5.1 million square feet. This represents the highest Q2 booking value in the company history.

The increasing demands for the luxury homes has led to rapid rise in sales in premium launches which results in a shortage of such inventory and subsequent rise in price. To meet this rapid growth, the developers are introducing new projects with new phases of existing projects at higher price points which reflect the premium on luxury real estate.