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Below are Quote on Real-estate sector & Buy call on Godrej property by Mr. Yash Gupta, Equity Research Associate, Angel Broking Ltd 

Is it a good time to buy real-estate stocks?

Today the S & P BSE Realty index is up by 3.58% and is up by more than 10% in July month. Real-estate sector broke its 10 year high of 2895 in March 2011. We have seen a good turnaround from real-estate sectors after the hit from the covid19 pandemic in 2020. Some of the stocks like Oberoi realty, Brigade, Godrej Property have reported better than expected pre-sales numbers in 2nd half of 2021 on back of pent-up demand in the sector. We expect that Q1FY22 will not be as good as the last quarter due to the state wise lockdown, but the long-term story of the real-estate market has been maintained. Real-estate has seen a down cycle of more than 5 years due to RERA implementation, Demonetization, Credit issues and then Pandemic. All these issues hit the unorganized market adversely and day by day, the unorganized players are losing market share in new launch property. Along with this, change in customer preference for ready to move property and brand loyalty are very favorable for the listed real-estate players.

We expect the Real-estate sector to outperform and this may be a start of a new upcycle in the real-estate sector after consolidation in the last 10 years. We have a buy call on Godrej Property with the target price of ₹1700.

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