n/1
Real Estate is suffering and is expected to suffer a lot in coming year , then why I'm buying Godrej Properties ?
Real Estate is suffering and is expected to suffer a lot in coming year , then why I'm buying Godrej Properties ?
n/2
Real estate is in distress, residential & commercial real state industry is going to shrink .
Reasons : refer to the picture !
Real estate is in distress, residential & commercial real state industry is going to shrink .
Reasons : refer to the picture !
n/3
Then why to invest in GP-a player in a shrinking industry?
Reason 1- Market is shrinking,but competition is also going away.
60-70 % players may leave the sector in coming years-Demonetization, ILFS default took them on death bed & COVID would be the final nail.
Then why to invest in GP-a player in a shrinking industry?
Reason 1- Market is shrinking,but competition is also going away.
60-70 % players may leave the sector in coming years-Demonetization, ILFS default took them on death bed & COVID would be the final nail.
n/4
Size of the pie has decreased ,but number of people expected to share that pie has also decreased.
Situation 1 is always better than situation 2.
Size of the bread is important but more important aspect is how many people would share it !
Size of the pie has decreased ,but number of people expected to share that pie has also decreased.
Situation 1 is always better than situation 2.
Size of the bread is important but more important aspect is how many people would share it !
n/5 Reason 2-Residential house demand may go down but it would be there.
i) Indians love to own homes,people living on rent is a huge market
ii) People getting married all the time,newly-weds love to get a new nest
iii)Resi-property is preferred investment option for many biz-men
i) Indians love to own homes,people living on rent is a huge market
ii) People getting married all the time,newly-weds love to get a new nest
iii)Resi-property is preferred investment option for many biz-men
n/5
Reason 3: Number of builders are getting out, old inventory is reducing , number of new launches is coming down.
Reason 3: Number of builders are getting out, old inventory is reducing , number of new launches is coming down.
n/6
Why #GodrejProperty ?
Why not #Oberoi ,#Koltepatil , #Purvankra , or #DLF ?
Reason ! :Because #GodrejProperty meets my all investment checklist .
Why #GodrejProperty ?
Why not #Oberoi ,#Koltepatil , #Purvankra , or #DLF ?
Reason ! :Because #GodrejProperty meets my all investment checklist .
n7
Reason 2: Because it is not concentrated in one belt .
It is present in Mumbai , NCR, Pune ,Bangaluru and expanding to other markets as well.
Reason 2: Because it is not concentrated in one belt .
It is present in Mumbai , NCR, Pune ,Bangaluru and expanding to other markets as well.
n/8
Reason 3: It is more focused on residential while other large players have significant commercial real-estate exposure.
Commercial RE already under stress due to Covid .If WFH continues longer,companies may become comfortable, they may drop their office expansion plans !
Reason 3: It is more focused on residential while other large players have significant commercial real-estate exposure.
Commercial RE already under stress due to Covid .If WFH continues longer,companies may become comfortable, they may drop their office expansion plans !
n/9
Reason 4: Because Godrej name evokes more trust among consumers than any other name in the industry and that too on pan-India basis.
And they have strengthened it further in this sector by giving quality homes along-with on-time delivery.
Reason 4: Because Godrej name evokes more trust among consumers than any other name in the industry and that too on pan-India basis.
And they have strengthened it further in this sector by giving quality homes along-with on-time delivery.
n/10
Reason 5 - Because it has acquired prime land across cities & also has access to the idle land lying with Godrej group .
Reason 5 - Because it has acquired prime land across cities & also has access to the idle land lying with Godrej group .
n/11
Reason 6 : #Godrejproperty has initiated an asset light model where it ties -up with struggling developers who have land but unable to build it sell the projects .
Godrej gives the its brand name , expertise , money to complete the project without investing in land .
Reason 6 : #Godrejproperty has initiated an asset light model where it ties -up with struggling developers who have land but unable to build it sell the projects .
Godrej gives the its brand name , expertise , money to complete the project without investing in land .
n/12
Reason 7 - Every market,in long run ,becomes organized, where brand leaders take the bigger share -same like any other consumer product - soap,fans,shoes,clothes or whatever.
Real estate slowly is moving towards that where leading brands would start taking higher share.
Reason 7 - Every market,in long run ,becomes organized, where brand leaders take the bigger share -same like any other consumer product - soap,fans,shoes,clothes or whatever.
Real estate slowly is moving towards that where leading brands would start taking higher share.
n/13
Disclaimer:
1.This thread to record my own thoughts
2. My investment thinking horizon is always 5-10 years .Hence my buying is also gradual- prefer to buy during correction phase.
Disclaimer:
1.This thread to record my own thoughts
2. My investment thinking horizon is always 5-10 years .Hence my buying is also gradual- prefer to buy during correction phase.
