ADVERTISEMENT

Real Estate - Cracker Of A Festive Season For Residential Segment: ICICI Securities

Real Estate - Cracker Of A Festive Season For Residential Segment: ICICI Securities

Residential buildings stand in Lavasa, India. Photographer: Karen Dias/Bloomberg
Residential buildings stand in Lavasa, India. Photographer: Karen Dias/Bloomberg

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

As per our channel checks, the momentum seen in residential sales bookings in Q2 FY22 has continued into the festive season in Q3 FY22 (October-December 2021) across India with a combination of low mortgage rates, stable residential prices, strong salary/hiring growth in the IT/IT enabled services sector, and continued work-from-home driving demand.

While we expect our coverage universe to clock 21% YoY growth in Q3 FY22 sales bookings, we expect sales to remain flat on QoQ basis owing to the high base of the previous quarter.

A common theme which we observe is that while developers have launched a few projects during the festive season, a bulk of the planned FY22 launches are expected to happen in Q4 FY22 (January-March 2022).

While the possibility of an adverse impact owing to a third Covid-19 wave across India remains, we believe that developers have adapted themselves well to digital platforms and continued work-from-home may support residential demand in Q4 FY22.

Click on the attachment to read the full report:

ICICI Securities Real Estate Sector Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.