Why Real-estate sector shining? - Angel Broking

Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

Real-estate sector has lost its shine after the covid hit the country as fear of work from Home and job loss has increased. Due to lockdown real estate companies need to give waiver of rent on Commercial property for Q1 & Q2 of FY2021. In residential pre sales number has come down to 30-50% in Q1FY20 then recovered significantly in Q2FY20, In Q2FY20 some benefit of pent up demand also. In the month of November some geographics like Mumbai registration for residential properties up by 67%(YoY) on higher festival demand and reduction in stamp duty, this was the highest-ever registration in the month. On residential side presales numbers are back to pre covid period and continuously improving on back of new scheme from developer and reduction in taxes by state government. On the commercial side mall occupancy and footfall has also increased significantly but still below its pre covid levels. We expect the residential market to recover first in 2021 and then the commercial sector. We have a positive outlook on Oberoi Realty and Brigade Enterprises.

Source : Equity Bulls

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