We specialize in leasing warehouses and investment services for warehouse properties

Nuvama Institutional Equities believes that real estate stocks are a great investment option for the medium term. With RERA (Real Estate Regulatory Authority) bringing more consolidation to the real estate business, developers with large land holdings are likely to see strong growth. Nuvama recommends Prestige Estates Projects Ltd and Brigade Enterprises Ltd as top picks in the housing market, especially in the homes and properties segment.

Growing Demand for Premium Properties

Nuvama noted a growing trend for premium properties in India. While overall supply and demand in the top-7 cities fell in November 2024—supply dropped by 53% and demand by 7%—demand by value rose by 16% year-on-year. Year-to-date, supply and demand by value grew by 9% and 13%, respectively. Unsold inventory increased by 5%, but the time to clear this inventory decreased from 17 months in October to 16 months.

Regional Sales Trends

• NCR (National Capital Region): Sales surged by 151% year-on-year in November, leading all regions in the real estate market.
• Chennai and Kolkata: Both cities saw strong sales growth in the housing sector.
• Hyderabad: Sales in Hyderabad dropped in both November and year-to-date figures.
• Year-to-Date Sales: NCR saw a 68% increase, with other cities like Kolkata, Mumbai, and Bengaluru seeing 12–15% growth.

In general, more premium homes and properties are driving the market, even though the number of units sold has decreased in some areas.

Outlook for Commercial Property and Warehouse Space

In addition to residential properties, Nuvama also highlighted the positive outlook for commercial property, including warehouse space. The demand for lease warehouse spaces is growing as businesses expand, and developers with strong financials are well-positioned to meet this demand. Rising interest in commercial properties and industrial spaces suggests that developers focusing on these areas will also benefit from increased demand and business development opportunities.

Positive Outlook for Developers

Looking ahead, Nuvama expects real estate developers to benefit from strong launch pipelines, more business development, and possible interest rate cuts. Developers with strong financials and established brands in both the housing and commercial property sectors are set to gain market share.

In conclusion, Nuvama believes that developers with strong balance sheets will be able to take advantage of attractive opportunities in the real estate business, including warehouse space and lease warehouse options, and will continue to grow their market share in the coming months.