Realtors laser-focused on launches

Real estate stocks are in fine fettle and mirroring the upbeat mood is the Nifty Realty index, which has rallied by 62% so far in 2023. The reasons are simple. Demand is robust. Plus, a pause on the interest rate hiking cycle by the Reserve Bank of India has aided sentiment.

- Harsha Jethmalani

Financial results of companies have brought cheer too. Pre-sales or bookings were impressive in the seasonally weak September quarter (Q2FY24). The top 14 listed developers reported 48% year-on-year (y-o-y) pre-sales growth in Q2, and 44% sequentially, led by Prestige Estates Projects Ltd and Godrej Properties Ltd, said IIFL Securities Ltd in a 20 November report. For HIFY24, pre-sales were 32% higher y-o-y. Expectations are that the second half of the fiscal year will be better as most of the FY24 launch pipeline would come on stream.

Generally, launches in the first half of a financial year tend to be relatively slower due to monsoons and the occurrence of the Shradh period, when potential buyers avoid purchases. But the pace of launches quickens in H2, and this year should not be any different. Notably though, developers have a lot of ground to cover to meet their FY24 launch targets.