Real estate stocks have made a comeback during the COVID-19 pandemic due to an increase in demand and savings shifting towards real estate as an asset class. The real estate sector had struggled for over a decade due to excess inventory, weak demand, and issues of corporate governance. However, regulatory changes such as the introduction of RERA and banks getting stricter have led to a clean-up in the sector. ET Prime offers exclusive access to economic news and analysis, including articles on the recovery of the real estate sector. Membership benefits include access to newsletters, exclusive stories, and the ability to communicate with industry experts.
As per the analysis by a recent report by ETMarkets.com, the real estate sector in India has made a comeback during the Covid pandemic. After remaining in a slump for over a decade, multiple factors have brought the sector back to the center stage.
One of the key factors that have contributed to the revival of the real estate sector is the increase in demand, which has helped take care of excess inventory. Another factor is the shift in savings back toward real estate as an asset class.
The report highlights four southern and western India-focused real estate stocks that have a “buy” recommendation and an upside potential of up to 24%. These stocks are expected to benefit from the revival of the sector and the increased demand for real estate.
Despite the slow process, there has been a clean-up in the sector, with regulatory changes like bringing in RERA and banks getting stricter on lending to the real estate sector. These changes have helped improve corporate governance and reduce the over-leveraged balance sheets that plagued the sector.
Investors looking to capitalize on the revival of the real estate sector should consider these four stocks. They are likely to benefit from the increased demand for real estate and the regulatory changes that have improved the sector’s Given these points health.
It is important to note, however, that investing in the stock market comes with risks. Investors should do their due diligence and research the stocks they plan on investing in before making any decisions. It is also important to have a diversified portfolio to mitigate risks.
By way of conclusion, the revival of the real estate sector in India during the Covid pandemic presents an opportunity for investors. The four southern and western India-focused real estate stocks highlighted in the report have the potential to provide significant upside for investors. However, it is important to approach investing with caution and do proper research before making any decisions.
