Since hitting a recent low on Thursday, the index has surged over 7 per cent. The index advanced nearly 3 per cent on Tuesday.
The major reason behind the rally has been positive fundamentals and strong sales data. The number of housing units registered in Mumbai in October 2021 jumped 8 per cent YoY to 8,576 (up 10 per cent MoM)–marking the best October performance in a decade.
“Even compared with the pre-pandemic Oct-19, registrations are 48 per cent higher. Furthermore, the YoY growth comes despite stamp duty being 5 per cent now compared with 2 per cent a year ago. The value of units registered during the month at Rs 11,000 crore is up 4 per cent MoM, but down 5 per cent YoY. YTD registrations at 94,650 units are up 2.6x YoY off a low base while YTD value at Rs 1,16,500 is up 2.2x YoY,” said analysts at Edelweiss Securities.
Analysts believe momentum in Mumbai housing sales will continue going ahead in the festive season. While matching the FY21 performance in absence of a stamp duty relief is a tall order, they believe the housing market is reviving nonetheless.
“We believe Mumbai-based organised developers such as Godrej Properties (BUY), Oberoi Realty (BUY), Sunteck Realty (BUY) and Macrotech Developers (BUY) will benefit from revival in housing sales in Mumbai,” Edelweiss said in its report.
BSE Realty Index, another benchmark tracking realty stocks, breached the 4,000 mark to record an 11-year high last month, but it was still significantly lower than its peak of 13,647 in Jan 2008. On Tuesday, it traded at 4,250, up 3 per cent.
