Jefferies bullish on realty stocks as strong sales likely to boost pre-sales growth to 25% in FY25

Global brokerage Jefferies is bullish on the real estate space as the busy season has kick-started on a good note. Realty index over the last seven sessions has spurted nearly 11 per cent and is now nearly 10 per cent down from the peak of 1,157.35 marked on June 18 this year.

Nonetheless, resounding its optimism on the sector, Jefferies made a note that sales in the residential space has shown a festive season-led upmove with sales in October rising to a 6-month high.

The brokerage underscored that value sales are trending over 20 per cent helped by both the mix and pricing.

As per Jefferies, large new launches are in pipeline or planned by major listed realty players in the second half of the fiscal year 2024-25.

Optimism view on realty companies

After a weak Q2, the brokerage anticipates strong sales to help developers see 25 per cent pre-sales growth in FY25. So, amid strong new launches as well as healthy pipeline, could emerge as key positive for realty companies going ahead.

Realty stocks to buy

So amid the recent buoyancy and festive cheer, the global brokerage likes or suggests buying 2 largecap stocks DLF and Macrotech Developers; and 1 midcap stock Godrej Properties.

Expect a good offtake to help the listcos post 25% pre-sales growth for FY25, despite a weak Q2

Prefer Godrej Properties, Lodha and DLF