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While the stock market is a complex place, sometimes eluding the best among us, there is a simple law that governs all stocks - if the industry and company are truly doing well, its stocks are bound to follow.
Now Analysts See A Real Estate Upcycle
Per Bloomberg-Quint, top stock brokerages feel housing is poised for an upcycle and commercial real estate is on track to rebound from the pandemic-driven disruption.
Word on Dalal Street:
🔼 Record low interest rates, stagnant prices over the last seven years and rising income are driving housing affordability and thus, sales.
🔼 Per Knight Frank, property registrations in Mumbai were the highest in at least nine years in 2021.
🔼 Per ICICI Securities, improved pace of vaccinations and staff returning to workplaces would result in an increase in net office absorption over the next three years, beginning 2022.
🔼 Real estate developers exposed to Bengaluru and Pune markets will outperform peers by volume and value, while Mumbai-based developers will benefit from long-term, pent-up demand.
Time To Buy Recommendations Are Back
Motilal Oswal initiated coverage on four developers—Macrotech Developers Ltd. and Oberoi Realty Ltd. with a ‘buy’, while DLF Ltd. and Godrej Properties Ltd. with a ‘neutral’.
ICICI Securities recommended a ‘buy’ on Embassy Office Parks REIT and Phoenix Mills, while has an ‘add’ call on DLF, Brookfield India REIT, Mindspace Business Parks REIT and Brigade Enterprises.
The brokerage suggests a ‘hold’ on Oberoi Realty and ‘reduce’ on Prestige Estates Projects.
*Recommendations per brokerages from a Bloomberg-Quint report.