RBI RESIDENTIAL ASSET PRICE SURVEY
Time to revisit as regulatory tightening cleans up the sector: 5 housing finance stocks with upside potential of up to 25%
Housing finance as a sector, has been at the forefront of bearing the brunt of both regulatory changes and also different scams at different points of time. But then it has thrown winners like HDFC and losers like DHFL. So, this is a sector which is bound to grow given the fact that demand for housing is always going to rise. What matters is which stock one owns and also another factor is the time frame with which it has been bought. The reason for the time frame is that this sector has to deal with interest rate cycles and also regulatory changes which makes the stock prone to phases of under performance. In the last one year, since the time RBI has been overhauling the regulatory provision of every segment of financial services these stocks have underperformed , but now recently once again they are showing signs of life coming back.
Luxury homes overtake the affordable segment. What gives?
Factors contributing to the luxury housing boom in India include rising incomes, the trend of premiumization, and pent-up demand post-pandemic. Additionally, the investment appeal of luxury real estate, shortage of luxury apartments in prime locations, and growing NRI investments further fuel this segment's growth.
JM Financial forsees strong growth in Indian markets
JM Financial Limited's MD, Chirag Negandhi, discusses market factors including political stability and the RBI's recent actions. With India's GDP growth projections and demographic trends, sectors like real estate, financial services, and consumer goods are expected to benefit. Positive market outlook post-2023 state elections with potential for increased capital influx and high interest in QIPs and IPOs.
Real estate upcycle: Possibly morphing into consumer discretionary
FY24 was an interesting year with strong gains across markets caps and sectors. While the Nifty 50 Index was up 29%, the Midcap Index was up 60%, the Smallcap Index was up 70%, Nifty 500 Index was up 39%.
Demand for bigger apartments continues to increase: Survey
Despite rising property prices, the demand for larger apartments is increasing. In 2023, 50% of respondents preferred 3BHK apartments, up from 42% the previous year. 38% preferred 2BHKs. 3BHKs are popular in Bengaluru, Chennai, Hyderabad, and Delhi-NCR, while in MMR, 44% prefer 2BHKs. Demand for 1BHK units is seen in MMR and Pune. The demand for luxury homes priced at Rs 1.5 crore has also increased. The most popular budget range is Rs 45-90 lakh.
ETMarkets Fund Manager Talk: Why is this CIO sticking to his overweight stance on domestic stocks ahead of elections?
According to Mihir Vora, the underlying domestic themes to be bullish on in the longer term are manufacturing, renewables, digitization, infrastructure, urbanization, premium consumption, financialization of savings, and the rise of equity savings cult. The market is already discounting elections and the verdict seems to be a continuity of regime.
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Nifty Financial Services stocks: Will sectoral leadership be regained by private sector banks
It has been more than three years that some of the biggest wealth creators in the private sector banking space have not been able to deliver much to their shareholders. Each one of them had its own set of issues to deal with. One where a big merger was getting planned and executed, others have seen a change at the helm and had to go through a process of shareholding adjustment to meet the regulatory requirements. Is this phase of going through adjustments over and will they get their mojo back.
India emerges as one of the top growth markets in the APAC region: Colliers
Colliers, the global consultancy firm, anticipates a substantial rise in Asia Pacific (APAC) investment activity in 2024. The report cites increasing market activity, narrowed buyer-seller gaps, and heightened investor confidence, particularly in India and South Korea. Piyush Gupta of Colliers India highlights India's resilience and growth potential, expecting sustained investor interest.
Nifty Financial Services stocks: Current challenges by RBI may be an opportunity for long-term investors
It is not the first time that RBI has taken measures to curtail unsecured lending. In past also there has been instances when banks and NBCF’s got aggressive to push credit growth and RBI has to tame them, first through verbal advice in public forum than then through rules and regulations. But the fact is that in capital starved countries like India, demand for credit will always remain high. This means that despite all the short term issues, in the long term a good lender which has a risk management system in place will be able to grow its top and bottom line.
"No distress": Finance Ministry clears concerns over plummeting household savings
India's finance ministry has addressed concerns about dropping household savings, stating that there is no distress. They explained that household savings relative to nominal GDP have remained constant at around 19.7% in FY22. The ministry also highlighted that overall household savings, including financial, physical, and jewellery assets, have grown at a CAGR of 9.2% between 2013-14 and 2021-22. They added that while financial assets added to portfolios decreased in recent years, the net financial assets of households continue to grow.
Tax sops, flexible payment plan key influencing factor for prospective homebuyers: Survey
Tax incentives and flexible payment plans are motivating prospective homebuyers to purchase residential properties, according to a survey by proptech firm and realtors' body Naredco. The survey found that 48% of respondents preferred real estate as an investment, outperforming stocks, fixed deposits, and gold. The demand for ready-to-move-in properties is higher than that for under-construction projects. The survey also highlighted the importance of personalized support in the homebuying process.
48% respondents prefer real estate investment over other asset class: Survey
According to a survey by real estate industry body NAREDCO, almost half of the respondents prefer real estate investment over other asset classes such as stocks, fixed deposits, and gold. Factors such as the emphasis on homeownership, the rise of hybrid work models, and the importance of safety and security have contributed to the increased preference for real estate.
How the 'perennial pessimist' economists cast shadows on any semblance of positive change in India
India’s growth numbers are backed by national data and endorsements by World Bank, IMF, RBI and other rating agencies. So, one should definitely take anything coming out of people who find that one cloud on a sunny day and declare it’s about to flood with a handful of salt.
Most homebuyers feel any further hike in home loan rate to impact purchase decisions: Anarock survey
A survey by real estate consultant Anarock has found that a significant percentage of prospective homebuyers in India believe that their purchase decisions will be affected if interest rates on home loans rise above 9.5%. The survey also revealed that respondents prefer to buy mid-range and premium homes, with a preference for 3BHK flats.
India's growth is sustainable; economy strong enough to weather high US rates, says CEA V Anantha Nageswaran
India's chief economic adviser, V Anantha Nageswaran, says that India's economy is strong enough to withstand high US interest rates. He believes that the country's medium-term growth rate of around 6.5% is sustainable, and private capital formation is evident. Nageswaran also discusses the risks India faces in securing energy supplies due to climate change and its transition away from fossil fuels. He believes that the country needs to focus on manufacturing as well as services and that India's debt and deficit ratios will improve in the future.
This real estate market is end-user-driven; sales demand momentum likely to continue: ANAROCK
This recovery in real estate is pretty different from what we saw post-Global Financial Crisis. This is based on solid fundamentals. Post RERA, we have a very strong and disciplined market. This is an end-user-driven market, not investor and speculative. That is why we are expecting continued momentum in the sales demand.”
ETMarkets Smart Talk- Consumption in India is expected to be a multiyear theme: Dikshit Mittal
The rise in the cost of capital acts as a drag on equity valuations. However, double-digit earnings growth of corporates in the listed space recouped the drag on valuations due to higher interest rates delivering overall flattish returns.
RBI's Shaktikanta Das needs monsoon rains to deliver before weighing rate cuts
As Reserve Bank of India Governor Shaktikanta Das made the case for inflation risks arising from a delayed monsoon after holding interest rates again, the weather office declared the rains had finally reached the South Asian nation. India’s southwest monsoon, which waters about half of India’s farmlands, typically hits coastal Kerala on June 1.
Inflation to impact profitability and growth: S&P Business Outlook Survey
The headline value of the index or the net balance declined to 21% in February compared to 28% in October, indicating a weaker degree of optimism. The global average was 32%, whereas the emerging markets averaged 33%, as per the report released on Monday.
Rupee falls 12 paise to close at 82.82 against US dollar
According to Dilip Parmar, Research Analyst, HDFC Securities, the Indian rupee underperformed among Asian currencies amid foreign fund outflows from domestic equities
Economic Survey 2023 Highlights: Growth to remain robust, CAD may widen, loan rates to stay high
Economic Survey 2023 Highlights: The Survey said that the Indian economy has recovered from Covid-induced contraction. It noted that Indian economy is staging a broad based recovery across sectors and the country will remain the fastest growing major economy in the world. India's GDP growth is expected to remain robust in FY23 at 7 per cent (in real terms).
RBI’s repo rate hike likely to impact housing sales pace, deal closures may take longer
The moderation in the repo rate hike, however, augurs well for the real estate sector as its pace has slowed down and persistent home ownership sentiment continues to ride high.
50% homebuyers expecting prices to rise in coming months : Survey
"India's residential market has seen a sharp revival in demand after the second wave of the COVID-19 pandemic. The rising cost of borrowing, increase in input costs and strong demand has resulted in a rise in housing prices.," said Dhruv Agarwala, Group CEO, Housing.com.
Co-operative Banks permitted more activities on par with commercial banks
“Taking into account the increase in housing prices, it has been decided to increase the existing limits on individual housing loans by cooperative banks” the Reserve Bank said in its statement on regulatory and developmental policies.
Realty sector sentiment at new highs with improving residential, commercial business momentum: Survey
When asked on their economic outlook for India, 85% of respondents in Q1 2022 expect the overall economic momentum to improve over the next six months. In terms of credit availability outlook, 66% of the respondents expect the funding availability to increase over the next six months, while 29% expect it to remain the same during the period.
Homebuyers expect housing prices to rise over the next six months: Survey
The survey includes response from more than 3,000 people to gauge consumer sentiments for the first half of 2022 calendar year. It revealed that 73 per cent of respondents were of the view that flexible payment plans and discounts would bring them closer to making the purchase decision.
Banks' gross NPAs may rise to 9.5% in September 2022: RBI report
"Macro stress tests for credit risk indicate that the gross non-performing asset (GNPA) ratio of SCBs may increase from 6.9 per cent in September 2021 to 8.1 per cent by September 2022 under the baseline scenario and to 9.5 per cent under a severe stress scenario," according to the 24th issue of the Financial Stability Report (FSR) released by the RBI.
Residential sales recovery continues in January-June led by Pune, Mumbai: Report
Of the key cities, Pune led sales activity with around 26% share, followed by Mumbai 19%. It was closely followed by Hyderabad and Delhi-NCR with 18% and 17% shares respectively, showed a CBRE South Asia report.
Women emerge as key homebuyers, 71% want ready homes: Survey
Of the total of 3,900 survey participants, 36% of respondents were women and among these, at least 70% consider the current time as ideal for buying a home. Their main sentiment drivers - housing affordability is currently optimal, developers' offers and discounts are attractive, and home loan rates are at a 15-year low.
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