Luxury housing demand will grow by double digits in 10 years, says CLSA; DLF, Oberoi Realty top picks

India premiumisation theme CLSA: Amid growing income, CLSA, in its recent note, said that the sale of premium products has outpaced mass market alternatives over the past decade, and in this wake, the India premiumisation theme will be at play for the next ten years.
 
Further, the global brokerage highlighted that the trend is the result of the growing aspirations of Indian citizens amid the backdrop of increasing social media penetration and the availability of digital content.
 
CLSA suggests that investors need to focus on players that are dominating their premium segment. Additionally, it said that premiumisation has primarily benefited sectors like consumer, auto, and property.
 
Sector-wise, the brokerage noted that in segments like footwear, FMCG, and jewellery, the sale of higher-end products has doubled. In the consumer segment, the brokerage likes names such as Titan, Hindustan Unilever, Zomato, and Sula Vineyards.
 
In the property space, the brokerage notes that more and more consumers are demanding bigger and better homes. In the next decade, it is estimated that luxury housing demand will grow by double digits. The brokerage is bullish on Oberoi Realty, Macrotech Developers, and DLF.

In the case of autos, there is a growing inclination towards cleaner and nicer vehicles, the brokerage remarked. Adding to that, sales of deluxe motorcycles as well as SUVs have seen a rise. 

Further, CLSA notes that the market share of companies in the premium vehicle segment has increased. In the auto space, the brokerage likes stocks like Tata Motors, M&M, and Eicher Motors.