The brokerage stated that the overall bookings for FY24 are anticipated to reach 90,700 crore, up 33% YoY from the initial projection of 15-20% growth.

Despite a robust project pipeline, the pace of new launches could not be maintained in Q4 of FY24, even though it had risen up in Q3FY24 as a result of several firms experiencing delays in approval. Therefore, a small number of companies experienced a consecutive slowdown in reservations. Nonetheless, every firm under its coverage—aside from Sunteck Realty—finished FY24 with a solid performance, with a 20–60% increase in bookings.

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The realty firms that fall within the brokerage’s purview are: Prestige Estates, Phoenix Mills, DLF, Godrej Properties, Macrotech Developers, Mahindra Lifespace, Oberoi Realty, Sobha, and Sunteck Realty.

In FY24, Godrej Properties, Mahindra Lifespace, and Prestige Estates are anticipated to record robust year-over-year growth of 53%, 55%, and 62%, respectively. On the other side, Sunteck Realty stated that because of the delay of the new tower’s debut at Mira Road, it is anticipated that it would miss the guideline.

Highest YoY growth in bookings

The brokerage also stated that the companies with the most year-over-year rise in bookings will be Godrej Properties, Mahindra Lifespace, and Oberoi Realty.

The brokerage claims that Godrej Properties launched eight new projects or phases in MMR, Pune, Gurugram, and Kolkata during another successful quarter of launches. Godrej Properties might announce pre-sales of 6,500 crore, up 60% YoY, with new launches and inventories valued at 16,000 crore.

“We also expect a strong performance on cash flows and profitability as the company remains on track to achieve its guidance of >10msf of completions and net collections of 10,000 crore,” the brokerage said.

According to the brokerage, Oberoi Realty is anticipated to record pre-sales of 1,700 crore, up 2.6x YoY, helped by the opening of a third tower at Elysian. It is projected that a 10% price increase will help the Sky City project. The Mulund initiatives have also shown an increase in velocity for the firm.

Top Picks

Anarock claims that with over 500k units sold in FY24—a 30% YoY increase—residential sales hit a decade record. Though more than 100,000 new projects were launched in 4QFY24, the amount of inventory available in the top seven cities decreased by 7% yearly.

The brokerage predicts continued buoyancy in the real estate market due to a solid pricing power, a comfortable inventory situation, and a good demand-supply balance.

“Most of the listed companies are trading above the value of their existing pipelines, so we prefer companies that are able to outperform their peers and whose valuations do not reflect this outperformance. Prestige Estates, Sobha and Godrej Properties are our preferred picks,” the brokerage said.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 10 Apr 2024, 01:12 PM IST