This can be gauged from the cement demand, developer pre-sales and the government’s affordable housing programme, the brokerage said. The brokerage house believes the PMAY Urban Programme is shifting from announcement to execution mode for nearly two million houses, significant budget raises and recent order wins by large contractors.
CLSA said the broadest indicator of housing construction activity — the cement demand — had seen doubledigit volume growth during the third quarter of FY18 and January 2018.
The response of developers to create affordable housing supply has started gaining some momentum with announcements of affordable targeted co-investment platforms being created by leading developers like Prestige and Mahindra Life.
The governments PMAY Urban programme has seen a steady execution build-up, with 1.8 m houses under construction as of March 2018 vs 0.7 m at April 2017. Construction contractors namely L&T and NCC have also announced substantial order wins from the Andhra Pradesh governments PMAY Urban programmers.
Source- Economic Times
Our base case remains that a combination of improved affordability and government support should drive the housing cycle improvement through 2018,” said CLSA. Among stocks catering to this theme, CLSA is bullish on Godrej PropertiesBSE -0.12 %, Sobha, Ramco Cements, and Supreme Industries.
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