Real estate index gains the most as sales volume picks up pace

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Who would have thought that Real Estate Share will lead the returns in 2019? In about half of the year, the Nifty Realty Index came back 19%, which makes it the biggest winner in the NSE’s regional index in this calendar year. Comparatively, the Nifty 500 Index has soared 6% so far this year.

In fact, Real estate most investors did not consider the real estate sector a good year.

Real estate

But this area has shown the resistance to real estate law (regulation and development) (RERA), which It was expected that after the September 2018 liquidity crisis will affect the probability of recovery. has helped

According to Kotak analysts, the sales volume of FY19 increased from 7% last year to 443 million square feet. This is useful in reducing inventory, with a reduction in new releases.

“Reduction in launch and improvement in sales speed has continued to help reduce inventory, and the inventory of everyone in India is 11% year-on-year, below ~ 1.23 bn sq. Feet to 1.4 bn sq. Feet. March 2019, “Kotak says.

In addition, the latest reduction in the repurchase rate, which has resulted in 75 basis points decrease since August 2018, is expected to provide relief to the region. Of course, some housing finance companies are still under the weather, problems related to liquidity crisis remain serious. But things are clearly better than a few months ago.big real estate firms.

In fact, there has been a sharp increase in new launches under RERA, which has seen a sharp increase in The real estate sector, once being chaotic, is now getting validity, and organized developers issue more property according to the law. the number of sales.

“Coverage for sales growth in the 4QFY19 was 38% YoY to 4QFY19 in crore 5,800 crores … , while due to lack of realities, Kotak Institutional Equities gave a note to customers Said, “Largest measure for the highest contribution of the lowest house tickets in the total sales segments.”In all geographical areas, there was a strong improvement in the previous sale.

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