A recovery in Indian commercial property and rising home prices in Mumbai and New Delhi will boost asset values and drive real estate stocks next year, BofA Merrill Lynch Global Research said.
The brokerage was reinstating coverage of the nation’s property industry with a “bullish” stance and has a buy recommendation for Indiabulls Real Estate Ltd., DLF Ltd. and Housing Development & Infrastructure Ltd., BofA Merrill Lynch analysts Unmesh Sharma and Gagan Agarwal said in report today. They have a “neutral” recommendation for Unitech Ltd., the second-biggest developer.
Real estate stocks have experienced a sharp rally since March 2009 on the back of capital raising and increased sales volume in the residential segment, the analysts wrote. We expect commercial property and pricing to surprise positively, leading to the next round of significant net asset value upgrades.
More : bloomberg.com
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