Shares of real estate firms such as DLF, Sobha, Godrej Properties, and Lodha fell by up to 6 percent on October 3, driven by overall market weakness and a slump in the Mumbai property market. The drop follows a 15 percent year-on-year decline in Mumbai housing unit registrations in September, impacted by the inauspicious Shraadh period and expectations of a stamp duty reduction.
The total value of registered units fell 22 percent year-on-year to Rs 14,600 crore. However, year-to-date, Mumbai has seen a 12 percent increase in unit registrations and a 6 percent growth in sales value at Rs 1.5 lakh crore.
Despite the current slump, analysts at Nuvama still stay optimistic as sales could rebound together with strong launches and possible rate cuts that would be beneficial to Mumbai-focused developers like Lodha, Oberoi Realty, and Godrej Properties. Key reasons include powerful business objectives, better cash flow, and rising home-buying on the back of rising wages and improved employment.
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Source: Moneycontrol
News Desk
