Godrej Property’s , DLF, Prestige, Sobha: HSBC picks real estate stocks post market fall
HSBC is positive on Godrej Property’s for its decentralised and diversified operations. HSBC likes DLF for its very strong brand and balance sheet; Prestige Estates for its impressive land parcels.
HSBC in its fresh note said its preferred ‘Buy’ ideas in the real estate sector includes Godrej Properties Ltd, DLF Ltd and Prestige Estates Projects Ltd. It said most real estate developers can complete their existing projects without selling anything more. Free cash flows even without future sales are largely positive, balance sheets strong and prospective margins likely higher, HSBC said.
It is positive on Godrej Properties for its decentralised and diversified operations. HSBC likes DLF for its very strong brand and balance sheet; Prestige Estates for its impressive land parcels and superior execution track record; and Sobha for its turnaround potential. It has ‘a Hold’ rating on Oberoi Realty for its limited projects exposure and valuation.
“We are still positive on the stocks following the correction, although we see early signs of a peak. We highlighted that the 3Q and 9M performance of most of the listed developers indicate 21 per cent YoY pre-sales growth guidance in FY25, of which c71% has already been achieved in 9M, with very little unsold inventory and strong balance sheets,” HSBC said.
HSBC said strong sales momentum in the past four years has ensured that there are enough receivables due from customers that companies can spend on their construction without the need to sell anything more.
“The Real Estate Regulatory act (RERA) is ensuring that developers are unable to take out cash from projects without completing their construction obligations. Within the listed developers, net debt ratios are among the lowest in the history of the companies. Also, unlike in the past, launch pipeline visibility is much better with the developers,” HSBC said.
Add to that, the past few years of strong price increases and expansion of the free sale area (FAR) on land parcels have ensured that developer margins are much healthier than in the past.
source :- https://www.businesstoday.in/
Frequently Asked Questions
Should I buy ready-to-move or under-construction in Gurgaon and NCR?
Ready homes have no wait, no GST and no build risk but cost more; under-construction is cheaper with a longer wait. Choose by your timeline and risk appetite.
How do I book a property in Gurgaon and NCR?
Shortlist, visit, check the papers and RERA, then pay the booking amount and sign the agreement. Read the payment plan and cancellation terms before you commit.
Do I need a lawyer to buy property in Gurgaon and NCR?
For anything beyond a simple, clean deal it helps. A lawyer vets the title, the agreement and the approvals, which is cheap insurance against a costly mistake.
What is a builder-buyer agreement?
It is the core contract between you and the developer, setting the price, payment plan, area, specifications and possession date. Read it fully before signing.
What is an occupancy certificate and why does it matter?
It certifies a building is legally fit to occupy. Never take possession of a completed home without it, since it affects loans, utilities and resale.
What is mutation and why is it important?
Mutation updates the ownership in municipal and revenue records after a sale. Without it the property tax and records still point to the old owner, so get it done.
What credit score do I need for a home loan?
Lenders prefer a healthy score, usually in the mid-700s and above, for the best rates. A lower score can still get a loan but often at a higher rate.
Can I claim tax benefits on a home loan?
Yes, home-loan principal and interest carry deductions under the income tax rules, subject to limits and conditions. Confirm the current rules or ask a tax adviser.
What is the difference between freehold and leasehold?
Freehold gives you full, permanent ownership of the property and land; leasehold runs for a fixed term from an authority. Freehold is generally simpler to resell.
How do I check a builder's track record?
Look at delivered projects, delivery delays, the RERA record and buyer reviews. A builder with a clean, on-time record lowers your risk sharply.
What red flags should I watch for when buying?
Unclear title, missing approvals or RERA, pending dues, a builder with delays, and prices far below the market. If something feels rushed, slow down and verify.
What is the difference between capital appreciation and rental yield?
Appreciation is the rise in the property value over time; rental yield is the annual rent as a share of the price. Most Indian homes give modest yield and rely on appreciation.
How much should I keep as a buffer beyond the price?
Set aside for stamp duty, registration, GST where it applies, interiors, and a contingency. A buffer of a meaningful share above the base price is prudent.
Is a home loan pre-approval useful?
Yes, a pre-approved loan tells you your budget, speeds up booking and strengthens your negotiating position with sellers. Get it before you shortlist seriously.
How do I choose between two similar projects?
Compare the builder record, RERA status, carpet area, real amenities, connectivity and total cost, not just the headline price. Visit both before deciding.
What stamp duty and registration charges apply in Gurgaon and NCR?
Stamp duty and registration vary by state and are usually a few percent of the property value, with a small rebate for women buyers in many states. Confirm the current Gurgaon and NCR rate before you budget.
