ECONOMY

Share Of Listed Developers In Housing Sales Nearly Quadrupled Since FY17

Share of larger developers in housing sales in India’s top seven cities nearly quadrupled since 2016-17 as homebuyers increasingly trusted branded, publicly listed companies when the sector went through a rough patch.

Biggest eight listed real estate companies accounted for 22% of 93,140 units sold in the nine months ended December, according to data by Anarock Property Consultants. That compares with 6% share in 2.03 units sold in entire FY17.

Last five years coincided with a radical change in India’s real estate landscape, starting with the overnight ban on 86% of currency in November 2016, setting back a cash-driven housing market. A stricter Real Estate Regulation Act, goods and services tax, and a credit crunch amplified troubles, stalling projects. And the pandemic struck a blow. Still, bigger developers with ability to raise funds thrived and are reaping gains from a rebound in demand.

The top eight listed players analysed by Anarock include Brigade Enterprises Ltd., Godrej Properties Ltd., Kolte-Patil Developers Ltd., Mahindra Lifespaces Ltd., Oberoi Realty Ltd., Prestige Estates Ltd., Puravankara Ltd., and Sobha Ltd.

These developers together sold 21.23 million square feet in the first three quarters of FY21, according to Anarock. That’s 2% higher than a year earlier despite the first wave of Covid-19.

After the rollout of RERA and GST, organised and branded players’ dominance has risen, said Anuj Puri, chairman at Anarock Property Consultants, said. “Both listed and leading developers have been catering to this new demand with projects for the affordable and mid-income segments, rather than playing only to the luxury homes gallery. This demand-supply equilibrium has helped keep sales momentum going during the pandemic, when housing demand rose significantly.”

Other Key Highlights

  • In Q1FY21, the most heavily impacted by the Covid19 national lockdown, saw about 5.16 million sq. ft. sold by the top eight listed realty players.

  • Q2 saw a meagre increase despite easing of lockdown restrictions at 5.8 million. This period coincides with the ‘Shraddha’, a period considered inauspicious by Hindus to buy property.

  • The festive quarter of Q3 saw a 77% sequential rise in area sold at 10.27 million sq. ft. by the top eight listed players.

  • For Q4, only three of the listed players—Brigade Enterprises, Oberoi Realty and Mahindra Lifespaces Developers—have released their data so far. They have together sold about 3.21 million sq. ft. in this quarter.

Most Related Links :
reporterwings Governmental News Finance News

Source link

Back to top button