Real Estate Q3 Results Preview- Residential Demand Remains Strong; Commercial In Recovering Phase: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.Residential demand remains poised for an upcycle, primarily buoyed by positive buyer sentiments and affordability. In terms of cities, the Bengaluru residential market continues to witness strong demand cycle on the back of: bulk hiring by IT and Global Captive Centres,salary increments for IT employees andbest-in-class affordability. As per Knight Frank, the inventory overhang in Bengaluru remains at a comfortable level of ~15 months while affordability remains best-in-class i.e. unit price-toper-capita-income ratio is at the lowest level i.e. 16 times compared to the overall industry level of 20-24 times, allowing developers to take gradual and consistent price hikes (~6-8%) in an inflationary environment. On the other hand, Mumbai has the highest level of inventory level i.e. ~35-40 months Demand for commercial realty will continue to recover, led by: large-scale hiring in IT/ITeS and other sectors,availability of talent/skills at lower cost andthe growing ‘return to office’ trend.For the ceramic industry, while we do expect growth in volume to continue in Q3 FY23, we expect the sharp increase in prices of natural gas and other raw materials to lead to pressure on operating margins..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Real Estate Q3 Results Preview- Residential Demand Remains Strong; Commercial In Recovering Phase: Nirmal Bang

Residential demand remains poised for an upcycle, primarily buoyed by positive buyer sentiments and affordability.

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