India's real estate stock benchmark jumped to its highest in 15 years on Tuesday as positive business updates from multiple companies reflect strong property demand.
The Nifty Realty index rose as much as 4.64% during the day to 609.90 points, the highest since Sept. 12, 2008. Shares of all constituents rose.
Two of the 10 listed real estate players in the index rose to their highest level over a 52-week period, with another at a record high.
Property demand in India has rebounded after the pandemic, driven by sales of luxury homes. Housing sales across the top 7 cities rose 36% year-on-year to a new record of 1,20,280 units in three months through September despite the usually slow monsoon quarter, according to Anarock Research. "Thanks to the stable repo rate and the resultantly stable home loan interest rates, we can expect the momentum to continue," it said.
Quarterly updates from developers mirrored the strong demand.
Prestige Estate Projects Ltd.
The company reported its highest-ever sales of Rs 11,007.3 crore during the first half of the financial year 2024, growing 69% against the year-ago period. Quarterly sales more than doubled to Rs 7,092.6 crore.
Shares of the company surged 19.28% to a record high of Rs 796.4 apiece since announcing its operational updates on Oct. 6.
Sobha Ltd.
The stock jumped 8.31% intraday to its highest level in 19 months and 10.32% since Oct. 5, when the company announced its operational updates.
It recorded the highest-ever quarterly sales of Rs 1,723.8 crore, up 48.1% compared to the same quarter last year.
Real estate companies not included in the index also reported positive results in their quarterly updates.
Ajmera Realty & Infra India Ltd.
The company reported a rise in sales of 52% during the quarter compared to the year-ago period.
It also announced the acquisition of three new projects with a gross development value of Rs 800 crore.
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