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| LOBS Art/Pixabay |
For real estate stock watchers, the forecast ahead says, ‘favourable weather’.
What’s Going Right?
Reducing
Inventory – While new project launches in the affordable to mid segment have
been very less in the last year-and-a-half, sustained demand has ensured that
unsold inventory has been diminishing.
Affordable Housing
Finance – Home loans are now cheaper than ever while being available to more
and more folks across the country. Home ownership is now more about the monthly
EMI cost than the total cost of the purchase.
Suburbunisation
– COVID has caused a certain amount of reverse migration from metro cities,
meaning more people with high purchasing power have gone back to their smaller
hometowns, firing up demand for high quality housing.
For
investors, stock market expert Ajay Bagga suggests an optimistic yet careful
approach - “I would just caution that go with the players who are not
leveraged. Many of the leveraged players have been wiped out. South and the
west based real estate companies look much stronger, balance sheet wise and
they will benefit.”
He is also
of the opinion that optimistic fundamental analysts do stay a step ahead but this time
around, the real incoming growth for real estate over the next two years looks legit.