Real Estate Sector Check - Steady Demand; Rising Share Of Mid-Income Housing: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.In CY22, residential real estate demand in the top-eight cities scaled a nine-year high, while office demand witnessed a robust recovery. As per Knight Frank, the demand trajectory remained positive in H1 CY23 too, with housing sales of ~1.57 lakh units (flat YoY). New supply marginally exceeded demand as launches grew 8% in H1 CY23 YoY to ~1.73 lakh units.Contrary to historical trends, the share of the affordable segment, which was the largest until recently, has now been eclipsed by the mid-income segment, driven by consistent growth in demand for larger homes since the pandemic and improved affordability.While industry demand remains steady, our coverage companies continue to grow at a faster pace, aided by consolidation and forays into new markets. In April-June 2023, we estimate our coverage universe to deliver 9% YoY growth in pre-sales, implying 11% YoY growth (excluding DLF Ltd.) in H1 CY23, thus outperforming industry growth.Leasing demand in commercial real estate remained resilient at 25-26 million square feet, aided by domestic companies and growing preference for shared spaces. New supply declined 24% YoY to 18 msf, resulting in a minor drop in vacancy.We continue to prefer players that have the ability to grow faster and a focused business development strategy. Prestige Estate Projects Ltd. and Brigade Enterprises Ltd. are our preferred picks..Click on the attachment to read the full report:.Havells India - Powering Growth With A Diversified Product Portfolio: Motilal Oswal Reinitiates Coverage.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Real Estate Sector Check - Steady Demand; Rising Share Of Mid-Income Housing: Motilal Oswal

Commercial segment showcasing resilience; residential outperformance to continue.

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