Budget 2024: Oberoi Realty, DLF & Godrej Properties top picks in real estate sector, says brokerage

The government could provide a further boost to the affordable housing segment by increasing the tax exemption limit for home loans, domestic brokerage Mehta Equities has suggested in its recent report on Union Budget 2024 expectations. During the interim Budget presented earlier this year in February, it announced a commitment of Rs 79,000 crore ($9.64 billion) for PM Awas Yojana (PMAY).

 

The Indian real estate sector -- which is the second-highest employment generator after agriculture -- is expected to reach $1.04 trillion by 2029 and contribute 13 per cent of the country's GDP by 2025, it stated.

 

"The Private Equity Investments in India's real estate sector stood at $4.2 billion in 2023. FDI in the sector (including construction development & activities) stood at $56.03 billion from April 2000 to March 2023. The Indian real estate sector witnessed strong private equity (PE) investments of $1.92 billion," Mehta Equities also mentioned.

 

"Growth momentum needs to be maintained in the face of difficult macroeconomic conditions marked by high inflation and rising interest rates. At the moment, many global investors are on a wait-and-watch mode as recessionary pressures persist," it further stated.

 

On the stock-specific front, the brokerage liked Oberoi Realty Ltd, DLF Ltd and Godrej Properties Ltd from the real estate space.

 

Brokerage JM Financial expects regulatory incentives for building a data centre as well as listing REITs (real estate investment trusts). It prefers DLF, Anant Raj Ltd and Prestige Estates Projects Ltd from the select sector.

 

Separately, Prashant Sharma, President at NAREDCO (Maharashtra), emphasised for a single-window clearance system to streamline project approvals and affordable housing incentives, including extending benefits under the PMAY. He also underscored the need to redefine affordable housing, saying it should include properties up to Rs 1 crore in metro cities.

 

Echoing similar views, Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Vice-President at CREDAI-MCHI, advocated for a single-window clearance system to expedite approvals and incentives for affordable housing.