Don't Cash Out Fully: Analysts' Strategy for Real Estate Stocks

Residential sales across top seven cities slipped 8% quarter-on-quarter in Q1-FY25, but analysts suggest long-term prospects remain strong

Real Estate StocksIndian Real EstateHousing SalesHdfc SecuritiesInvestment StrategyReal Estate PuneJul 03, 2024

Don't Cash Out Fully: Analysts' Strategy for Real Estate Stocks
Real Estate Pune:The recent decline in residential sales across the top seven cities in India, including National Capital Region, Mumbai Metropolitan Region, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata, should not be a cause for concern for investors in real estate stocks. According to analysts, the long-term prospects of real estate stocks remain strong, despite the 8% quarter-on-quarter slip in Q1-FY25.

In the first half of calendar year 2024, realty stocks surged up to 104%, and analysts suggest that this sharp run should be used to book partial profits in related stocks. Deepak Jasani, head of retail research at HDFC Securities, suggests that the first leg of the bull-run in real estate stocks may be nearing its end, and partial profit booking is advised.

information HDFC Securities is a leading stock broking company in India, providing a range of financial services to retail and institutional clients.

The Indian real estate sector has been witnessing a significant growth in recent years, driven by factors such as urbanization, improving economy, and increasing demand for housing. However, the sector also faces challenges such as high interest rates, regulatory issues, and supply-demand mismatch.

Despite these challenges, analysts believe that the long-term prospects of real estate stocks remain strong, driven by the growing demand for housing and infrastructure development in the country. Investors are advised to adopt a cautious approach and book partial profits in real estate stocks, while maintaining a long-term perspective.

HDFC Securities is a leading stock broking company in India, providing a range of financial services to retail and institutional clients.

Frequently Asked Questions

What is the current trend in residential sales across top seven cities in India?

Residential sales across top seven cities in India slipped 8% quarter-on-quarter in Q1-FY25.

What is the advice of analysts for investors in real estate stocks?

Analysts suggest that investors should book partial profits in real estate stocks and maintain a long-term perspective.

What is driving the growth of the Indian real estate sector?

The Indian real estate sector is driven by factors such as urbanization, improving economy, and increasing demand for housing.

What are the challenges faced by the Indian real estate sector?

The Indian real estate sector faces challenges such as high interest rates, regulatory issues, and supply-demand mismatch.

What is the long-term outlook for real estate stocks in India?

Analysts believe that the long-term prospects of real estate stocks remain strong, driven by the growing demand for housing and infrastructure development in the country.

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