Nifty Realty index up 49% this year; does the realty sector have more steam left?

livemint.com:

Prestige Estates Projects, Macrotech Developers (Lodha) and DLF, have surged between 58-70 per cent on strong sales momentum despite elevated interest rates. Along with the pent-up demand, realty stocks are riding the strong economic recovery of the country.

Experts believe the momentum will continue for the next few years. Vijay Agarwal, Director - Investment Banking at Equirus said the increase in realty stocks can be attributed to other variables such as stability in interest rates, and stability in home prices which move in tandem with commodity prices, which have cooled off in the last two quarters.

What also worked to the benefit of the sector is the consolidation of the market from unorganised to organised, which is playing out in favour of top developers, gaining them a larger chunk of the pie. This change is not a short-term fad but a long-term phenomenon making it an attractive bet for investors, Agarwal said.

Along similar lines, Trivesh D, COO at Tradejini believes the unwavering stance of the Reserve Bank of India in maintaining unchanged repo rates laid a solid foundation for the real estate sector, instilling investor confidence and providing a stable environment. Complementing this stability was the synergy between the festive season and a substantial recovery in demand, which led to a resurgence in interest and investment in the real estate market.

This renewed enthusiasm was further propelled by encouraging second-quarter business updates from companies within the sector, highlighting the industry's adaptability and resilience, Trivesh underscored. A significant contributor to the Nifty Realty index's success was the substantial increase in foreign investor inflows, solidifying the sector's