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ICICI Securities: Realty Check - Green Shoots Emerge In Residential, All Eyes On Festive Season

ICICI Securities: Realty Trend - Green Shoots Emerge In Residential Segment, All Eyes On Festive Season

Residential buildings stand at the Edelco Utopia housing complex in Noida, Uttar Pradesh, India. (Photographer: Anindito Mukherjee/Bloomberg)
Residential buildings stand at the Edelco Utopia housing complex in Noida, Uttar Pradesh, India. (Photographer: Anindito Mukherjee/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

After a washout in Q1 FY21, Q2 FY21 (July-September 2020) has seen industry volumes revive to 80% of pre-Covid-19 levels owing to a mix of pent-up demand, price discounts and low mortgage rates.

We expect the listed, organised players to clock anywhere between 70-90% of Q2 FY20 sales in Q2 FY21.

As we head into the festive season, listed developers have a number of planned launches and continue to focus on monetisation of ready inventory.

While overall industry volumes may remain lower in H2 FY21 on YoY basis, we expect listed developers to be continued beneficiaries of industry consolidation and expect their sales volumes to get back to pre-Covid-19 levels in this period assuming further waning of Covid-19 impact.

Click on the attachment to read the full report:

ICICI Securities Real Estate Residential Sector Update Oct20.pdf

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