Real Estate Stocks Surge 8% as Sales Jump 200% Year-Over-Year
With the real estate market in India witnessing a significant upswing, stocks of major developers like Ashiana Housing Limited are witnessing a surge. Real estate stocks are expected to remain strong performers in the Indian market, driven by robust deman
Real EstateAshiana HousingStock MarketInvestmentGrowth PotentialReal Estate NewsJan 08, 2025
Real estate stocks, particularly those from large developers, have seen significant interest due to the sector’s recovery post-pandemic.
The sector’s resilience is backed by growing demand for residential, commercial, and industrial properties across major cities, making it a potentially lucrative investment option.
With favorable government policies and urbanization trends, the real estate sector in India is poised for sustained growth.
Growth Prospects in Real Estate Stocks
Real estate stocks are benefiting from strong demand in the residential segment, with a surge in affordable housing and luxury projects.
Commercial properties, too, are seeing a resurgence with the return of office spaces post-pandemic.
Additionally, the government’s push for smart cities, improved infrastructure, and rapid urbanization contribute to positive growth projections for real estate stocks in the long term.
The Real Estate Craze in India in 2024
In 2024, India’s real estate market is witnessing a renewed craze, fueled by rising disposable incomes, low home loan rates, and urban migration.
There’s a growing demand for both residential and commercial spaces, especially in Tier 1 and Tier 2 cities.
The rise of digital platforms and new-age marketing techniques has also transformed the real estate buying experience, attracting more investors and homebuyers.
With these trends, real estate stocks are expected to remain strong performers in the Indian market, with robust growth potential.
Share Price
The shares of Ashiana Housing Limited are currently trading at Rs.
386.69, up by 6.5% from its previous close of Rs.
363.05 as of January 08, 2025.
The stock also touched an intraday high of Rs.
395.7.
Recent Updates
Business Performance Update – Q3 FY ’25
In Q3 FY ‘25, the company booked 6.75 lakh square feet of area, a slight decline from the 7.29 lakh square feet booked in Q2 FY ‘25 but a notable increase from 3.35 lakh square feet in Q3 FY ‘24, indicating a 200% rise in area sold YoY.
A total of 451 units were booked in Q3 FY ‘25, compared to 482 units in Q2 FY ‘25 and 252 units in Q3 FY ‘24.
The value of the area sold in Q3 FY ‘25 stood at INR 454.31 crores, down from INR 672.54 crores in Q2 FY ‘25 but significantly higher than INR 173.88 crores in Q3 FY ‘24.
Project Launch and Sales Performance
During Q3 FY ‘25, the company launched three major projects ‘Ashiana Swarang,’ ‘Ashiana Amodh Phase-2,’ and ‘Ashiana Ekansh Phase-4’.
These new launches contributed to 183 unit sales, translating to 2.86 lakh square feet, with a sales value of INR 191.27 crores.
The overall nine-month period for FY ’25 has shown robust performance, with 18.47 lakh square feet booked and INR 1,362.17 crores in the area sold, outperforming the previous year’s corresponding period.
About the Company
Ashiana Housing is a leading real estate developer focused on transforming land into residential buildings for sale.
The company’s core business model involves acquiring land, developing it into residential properties, and selling them to customers.
Ashiana aims to liquidate its inventories within a 5-7 year period, ensuring a timely return on investment.
The company targets projects that yield gross margins of over 30%, reflecting its commitment to profitability and sustainable growth.
With a strong focus on real estate development, Ashiana Housing continues to deliver high-quality residential solutions across various locations.
Frequently Asked Questions
What factors are driving the growth of the real estate sector in India in 2024?
The growth of the real estate sector in India in 2024 is driven by several factors including rising disposable incomes, low home loan rates, urban migration, and favorable government policies such as the push for smart cities and improved infrastructure.
Why are real estate stocks expected to perform well in the Indian market?
Real estate stocks are expected to perform well in the Indian market due to strong demand for residential and commercial properties, particularly in Tier 1 and Tier 2 cities. The sector's resilience, backed by robust growth potential and urbanization trends, makes it a lucrative investment option.
What recent performance updates have been reported by Ashiana Housing Limited?
In Q3 FY ‘25, Ashiana Housing Limited booked 6.75 lakh square feet of area, a 200% increase YoY. The company also launched three major projects: ‘Ashiana Swarang,’ ‘Ashiana Amodh Phase-2,’ and ‘Ashiana Ekansh Phase-4’, contributing to 183 unit sales and a sales value of INR 191.27 crores.
How is the rise of digital platforms affecting the real estate buying experience?
The rise of digital platforms and new-age marketing techniques has transformed the real estate buying experience, making it more accessible and convenient for investors and homebuyers. This has attracted more participants to the market, contributing to the overall growth of the sector.
What is Ashiana Housing's business model and target gross margins?
Ashiana Housing's business model involves acquiring land, developing it into residential properties, and selling them to customers. The company aims to liquidate its inventories within a 5-7 year period and targets projects that yield gross margins of over 30%, reflecting its commitment to profitability and sustainable growth.
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