Godrej Properties has said that it achieved sales worth Rs 575 crore in a single day on the launch of the second phase of Godrej Woods in Noida and that is exciting the DLF stock as well because they work in the same geography.
Meanwhile, global financial services firm UBS conducted a survey that showed 56 percent of the respondents want to buy a property over the next two years and three in four expect the prices to rise in the next few years. A pain point has been that under-construction demand is back. So, this data point is very positive and a higher share of respondents are also positive about future income growth, which could translate into real estate investments as well.
However, UBS said developers are now trading close to a 10-year peak valuation. They are positive on the real estate cycle but valuations are making them selective and that's why they have a buy rating on DLF and Prestige Estate. However, they have sells on Godrej Properties and Oberoi Realty.
Investec has initiated coverage on Macrotech Developers (formerly known as Lodha Developers) and is positive on the stock. It says that the sector appears to be at the cusp of a long cyclical uptrend as far as sales are concerned.
Investec believes Lodha is best positioned to play the cycle because of its higher market share in the Mumbai Metropolitan Region (MMR) market. Most of the capex is behind it, it is deleveraging its balance sheet and lower valuations are something that makes Investec positive on this particular stock.
But generally, many analysts are very bullish on the real estate cycle as well and that's why all these stocks are excited in trade.
Watch the accompanying video of CNBC-TV18’s Sonal Bhutra for more details.