From Sobha, Ajmera Realty to Macrotech - Why real estate stocks are rallying today?
Premium- Ajmera Realty shares jumped more than 11% after the company shared its Q1 business update
Nifty realty index surged over a per cent in Thursday's trading session after real estate developers reported strong updates for the quarter ending June 2022. Among individual stocks, Sobha Ltd, Ajmera Realty, Indiabulls Real Estate, Oberoi Realty, Godrej Properties, Macrotech Developers (Lodha) were trading higher in the range of 2-12% in early deals.
Ajmera Realty shares jumped more than 11% after the company shared its Q1 business update where its sales value up 261% from the same quarter last year and up 229% on a sequential basis at ₹400 crore. Its Q1 collection rose 93% year-on-year (YoY) & 126% quarter-on-quarter (QoQ) at ₹210 crore.
Sobha shares rallied as much as 8% after the realty firm's total sales value rose to ₹1,145 crore during the quarter, up by 67.7% YoY whereas selling volume rose to 1.36 million square feet (sq ft), up by 51.7% from the year-ago quarter.
Realty firm Macrotech Developers on Wednesday reported a nearly three-fold jump annually in its sales bookings at ₹2,814 crore in the April-June quarter of this fiscal on strong demand for its residential properties.
The company has maintained its ₹11,500 crore pre-sales guidance for FY23. Demand has remained robust for credible Grade A developers across segments despite evolving macro-economic conditions, Lodha's management said.
Macrotech Developers sells its properties under Lodha brand. It has a major presence in Mumbai Metropolitan Region (MMR) and Pune market. The company has recently forayed into Bengaluru.
India's residential real estate segment has recorded a 9-year high in terms of sales volume during the first half of 2022 (January-June), said global property consultancy firm Knight Frank in a note.
Housing prices increased across all markets in the range of 3–9% year-on-year (YoY), as per the report. This also marks H1 2022 as a period in which prices have grown in YoY terms across all markets for the first time since the second half of 2015.
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Knight Frank has listed several factors for the increase in housing sales such as homebuyers' need to upgrade primary lifestyle, low interest rates on home loans and comparatively low home prices to the pre-pandemic levels. The renewed need for home ownership sparked by the covid pandemic is also driving housing sales.