Sharing the outlook on the residential property market with CNBC-TV18, Parvez Akhtar Qazi, an Executive Director at Nuvama Group said “Even mid-priced homes in the western and central suburbs (of Mumbai) are doing well. We are positive about Mumbai’s real estate market because of big infrastructure projects.”
He believes the improving infra will also increase housing sales in areas around the main city.
Qazi expects the real estate market to grow by 15 to 20% in the fourth quarter and a 25-30% jump in home sales for most big developers in FY24 and FY25.
In February this year, the demand for homes in India’s top seven cities increased by 20% compared to the same month last year and 7% over the previous month.
However, the number of new launches declined by 20% compared to last year. It increased by 1% over the previous month.
For the calendar year up to February, the demand for homes grew by 13% compared to last year, while supply dipped by 28%.
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Prices have gone up in most cities, with the highest increase seen in Bengaluru, where prices surged by as much as 20% compared to last year.
Qazi said, “We are not really in a range where you are likely to see price correction either in Mumbai or in any other market.”
On a broader level, Qazi observes luxury real estate doing well across the board, whether it is Mumbai, NCR, or Bengaluru.
He also mentioned that the unsold inventory among most listed developers is currently quite low.
Nuvama likes companies that work in both home and office real estate.
The brokerage firm has a ‘buy’ rating on DLF, Prestige Estates, and Brigade Enterprises and ‘hold’ on Godrej Properties and Oberoi Realty.
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(Edited by : Vrushali Sawant)
First Published: Apr 1, 2024 10:50 AM IST