Housing sector revival: Godrej Prop, HDFC & ACC among Jefferies’ top picks
“The last 25-year history suggests that Indian property up/down cycles typically last 7-9 years,” said Jefferies in a note to clients.
By ET Bureau | Updated:
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“We believe that the sector is now emerging from an 8-year downturn and we believe that 2020 was the bottom.”
Mumbai: Jefferies said Godrej Properties, HDFC, ACC, L&T and Supreme Industries are its top bets on the expected revival in the country's housing sector. The brokerage said the upcycle in the sector, which is emerging from an eight-year downturn, could see an upcycle over the next five to seven years.
“The last 25-year history suggests that Indian property up/down cycles typically last 7-9 years,” said Jefferies in a note to clients. “We believe that the sector is now emerging from an 8-year downturn and we believe that 2020 was the bottom.”
Jefferies said the housing sector is seeing its best affordability in the past 20 years. “Over the last 9 years, property prices have moved up by only 25% whereas the cumulative income growth has been 70%. Low mortgage rates also help,” the brokerage said. Jefferies said property developers, housing finance companies, cement and building materials makers will be the key beneficiaries.
