Nifty Realty Index Sees Over 2% Decline as Housing Sales Dip 11% in Q3CY24
The Nifty Realty index slipped over 2% on Tuesday, following an 11% decline in housing sales in Q3CY24. Mumbai Metropolitan Region (MMR) remained the top performer, while Macrotech and Sunteck are top buys.
Nifty RealtyReal EstateHousingMumbai Metropolitan RegionMacrotech DevelopersReal Estate MumbaiSep 30, 2024
According to a report by Knight Frank, the Indian real estate sector witnessed a decline of 11% in housing sales in Q3CY24, compared to the same period last year. The report highlighted that the decline in sales was due to a combination of factors, including a rise in interest rates, increased inflation, and a decline in consumer confidence.
The Mumbai Metropolitan Region (MMR) remained the top performer, with sales of 19,142 units, followed by Bengaluru with 13,145 units, and Delhi-NCR with 10,147 units. The report also highlighted that the luxury and ultra-luxury segments witnessed a significant decline in sales, with a drop of 24% and 35%, respectively.
The decline in housing sales has had a ripple effect on the stock market, with the Nifty Realty index witnessing a decline of over 2%. Macrotech Developers and Sunteck Realty were among the top losers, with a decline of 4% and 3%, respectively.
Despite the decline in sales, experts remain optimistic about the long-term prospects of the Indian real estate sector.
Frequently Asked Questions
What was the decline in housing sales in Q3CY24?
Housing sales declined by 11% in Q3CY24, compared to the same period last year.
Which region remained the top performer in terms of housing sales?
Mumbai Metropolitan Region (MMR) remained the top performer, with sales of 19,142 units.
Which stocks are recommended by experts?
Experts recommend buying Macrotech Developers and Sunteck Realty, while Oberoi Realty is a hold.
What are the factors that led to the decline in housing sales?
The decline in sales was due to a combination of factors, including a rise in interest rates, increased inflation, and a decline in consumer confidence.
What is the long-term outlook for the Indian real estate sector?
Experts remain optimistic about the long-term prospects of the Indian real estate sector, driven by the government's efforts to boost affordable housing and the rise of the coworking and warehousing segments.
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