Realty Stocks Surge Up 16-65% Since Nov, Can it Sustain?

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Realty Stocks Surge Up 16-65% Since Nov, Can it Sustain?
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- It seems like people are buying homes again. Realty stocks have been on a tear since the start of November as consumer confidence has improved.

Indiabulls (NS: INBF ) Real Estate is up over 63% closing at Rs 76.7 on Wednesday. DLF (NS: DLF ) closed at Rs 235.4, up over 41% from its November 2 price of Rs 165.8. Oberoi Realty (NS: OEBO ) is up over 21%, closing at Rs 535.65 on Wednesday compared to Rs 440.95 on November 2. Sobha Developers Ltd. (NS: SOBH ) closed at Rs 337.1 on Wednesday compared to Rs290.45 on November 2, up 16%.

A report by Colliers India had said that commercial real estate absorption had increased by 58% for the quarter ended September 30, 2020. A Bloomberg Quint report said that residential real estate is now following suit with a growth in sales in cities like Mumbai, Pune, NCR, Bengaluru, and Hyderabad.

A report by Knight Frank said that thanks to a reduction in stamp duty by the Maharashtra government and the festive season, Mumbai recorded home sales of 9,301 units in November 2020, up 67% from the same period last year. In fact, this is the highest ever registration number in Mumbai in the last nine years.

Mumbai, the most expensive real estate market in India, has seen a total of 22,827 units registered after the stamp duty cut during September-November 2020.

According to analysts, the trend augurs well and as India enters what seems to be one of its final stages of unlocking, realty stocks should continue to do better.

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