Registration of homes shot up 13% in Mumbai with Lodha, Godrej, Oberoi & Suntek on top

Nuvama stated that Mumbai-based developers like Macrotech Developers, Oberoi Realty, Godrej Properties, Sunteck Realty, and Rustomjee are poised to gain from robust housing sales in Mumbai.

Upon the release of the latest monthly housing registration data in Mumbai, Nuvama Institutional Equities expressed optimism regarding potential interest rate reductions in the near future.

The firm suggested that real estate developers concentrating on the Mumbai market, including Godrej Properties Ltd, Oberoi Realty, Macrotech Developers Ltd (Lodha), and Sunteck, are poised for success in the coming period. 

The data indicated that there was a 13% year-on-year increase in the number of housing units registered in Mumbai, reaching 11,673 units in June.

Furthermore, the total value of registered units saw an 18% year-on-year growth, amounting to Rs.16,900 crore. Additionally, the average ticket size experienced a slight 4% year-on-year rise for the month.

In summary, Mumbai has registered 72,492 units in the year 2024, indicating a 16 percent year-on-year growth. Sales have reached Rs. 97,900 crore, showing a 5 percent year-on-year increase.

The report added, "We anticipate an improvement in Mumbai's real estate sales as the RBI has decided to halt rate hikes. This, combined with the reassurance regarding valuations, will be advantageous for Mumbai-based companies such as Lodha, Oberoi, Rustomjee, Godrej Properties, and Sunteck."

The rise in salaries, job prospects, and the return to physical office spaces are expected to maintain a robust level of home purchasing activity.

The domestic brokerage said, Mumbai-based developers such as Macrotech Developers (BUY), Oberoi Realty (BUY), Godrej Properties (BUY), Sunteck Realty (BUY) and Rustomjee (not rated) would benefit from strong housing sales in Mumbai

According to Nuvama, a significant 91% of the properties registered in Mumbai in June were located in the western and central suburbs, with a distribution of 49% and 42% respectively. South Mumbai only accounted for 7% of the new registrations, while Central Mumbai made up the remaining 2% of registrations.

Buyers are preferring homes ranging from 500 to 1,000 square feet, making up 46% of total registrations for the month. Apartments up to 500 square feet accounted for 36%, and apartments less than 1,000 square feet made up 18%.