Lodha, Godrej Properties, Oberoi Realty, Sunteck: 4 real estate stocks to buy as Mumbai registrations jump 13% in June

Mumbai: Nuvama Institutional Equities stated that real estate developers like Godrej properties Ltd, Oberoi Realty, Macrotech Developers Ltd (Lodha), and Sunteck focusing on Mumbai market should perform well, thanks to the robust monthly housing registration data and expectations of a decrease in interest rates.

Statistics revealed that there was a 13 percent year-over-year increase in the number of housing units recorded in Mumbai, totaling 11,673 units in June. The total worth of registered units increased by 18 percent year-over-year to Rs 16,900 crore. The average ticket size for the month increased by 4 per cent compared to the previous year.

In summary, up until now in the year 2024, there have been 72,492 units registered in Mumbai, representing a year-on-year growth of 16 percent. Sales have increased by 5 percent year-on-year to reach Rs 97,900 crore in 2024 in terms of value.An improvement in Mumbai's realty sales with the RBI choosing to halt rate hikes. It was mentioned that Mumbai-based players like Lodha, Oberoi, Rustomjee, Godrej Properties, and Sunteck will benefit from this, along with the comfort regarding valuations.

Nuvama predicted that strong business development goals, increased launches supported by improved cash flow, interest rate stability, diversification, and market share gains would help maintain the buoyancy in sales.

It was stated that higher wages, more job opportunities, and employees returning to the office will probably maintain a strong level of activity in the housing market. Overall, according to the domestic brokerage, Mumbai-based developers like Macrotech Developers (BUY), Oberoi Realty (BUY), Godrej Properties (BUY), Sunteck Realty (BUY), and Rustomjee (not rated) are expected to benefit from robust housing sales in Mumbai.

Nuvama reported that a high percentage, up to 91 per cent, of the properties in Mumbai registered in June were located in the western and central suburbs, accounting for 49 per cent and 42 per cent of the total, respectively. South Mumbai made up 7 percent of the total contribution.