Outlook Business Desk
HSBC believes that the sluggishness in bookings by real estate companies during Q2 was primarily due to a lack of inventory, not weak demand. The brokerage emphasized that project approvals will be crucial to meeting FY25 guidance and that fresh land acquisitions are essential for maintaining growth momentum in the sector
HSBC has recommended "Buy" calls on several real estate companies, including Godrej Properties, DLF, Sobha Developers, and Prestige Estates. Additionally, it has placed a "Hold" recommendation on Oberoi Realty, based on its analysis of the market and individual company performance
The BSE Real Estate Index was up by 1.5% in early trading on November 27. All constituents of the index were in the green, with Mumbai-based Macrotech Developer leading the pack, showing a 3% rise
The growth of the real estate market is driven by rising disposable incomes, increasing demand for premium offerings, and the expansion of quick commerce (Q-commerce). These factors are contributing to the market's positive outlook in the coming years
Project approvals and fresh land acquisitions are crucial to sustaining the growth momentum in India's real estate sector. HSBC emphasized that these factors are key to ensuring real estate companies can meet their revenue and expansion targets
Macrotech Developers, based in Mumbai, was the top performer in the early trade on November 27, with a significant 3% increase in its stock price. The overall positive movement in the BSE Real Estate Index was primarily driven by Macrotech's performance
HSBC's outlook for the Indian real estate sector suggests that strong demand will continue, albeit with a focus on managing inventories and land acquisitions. The overall sentiment remains optimistic for companies able to secure approvals and land for future developments