Realty sector rises 63%, beats Nifty50; More companies are eyeing IPO

Real estate has been one of the best performing sectors and has delivered absolute returns of over 63 per cent over the past one-year period, outperforming many other sectors as well as the benchmark Nifty 50, which has gained 27.5 per cent. Percentage has increased.

The real estate index includes all major developers, including Godrej Properties, Lodha, DLFand Prestige Estates, all of which are expanding to become pan-India players.

Shares of companies have increased by 43 percent to more than two times. Prestige Estate And Shobha The stock, which has doubled in the last one year. like stocks Oberoi Realty And Godrej Properties There has been a growth of more than 70 percent in the period under review, and Brigade Enterprises has grown by more than 90 percent.

This increase comes on top of the appreciation that had already taken place before 2021, when the real estate sector really took off. The rally in stocks and the sector, especially for housing, which is a key component of the sector, is evidence of continued demand.

While demand in the office sector has been mostly stable, demand in the residential sector has taken a hit recently, driven by the pandemic. After almost 10 years of recession, residential demand is driving the sector.

Shares of second-tier developers have performed even better Purvankar’s Shares triple in one year like small players Ajmera Realty, Signature GlobalAnd Max Estates has seen its shares rise by 2.2-2.4 times.

While some months have seen fluctuations in sales, on a secular basis, both sales and launches by real estate developers are trending upward and thereby increasing investor interest as well.

real estate ipo

The rally in stock prices has encouraged even unlisted players to enter the market so far, and in 2024 alone, seven real estate IPOs had raised ₹13,550 crore, according to Colliers data. This is a record number. In 2021, six real estate IPOs raised ₹10,840 crore.

Post-pandemic demand is captured through capital market trends. Since 2010, 47 real estate companies have entered the equity markets. More than half have listed since 2021, and have raised more than ₹30,000 crore.

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