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M3M Group, which develops residential and commercial units in the National Capital Region (NCR), including the under-construction Trump Tower, has seen both home and office space sales return to almost pre-covid levels in recent months.

Between July and October, Gurugram-based M3M has sold homes and office space totalling nearly 2,000 crore, which is 40-45% of its annual sales.

“We believe there is a demand comeback, but customers are also showing confidence in developers like us who delivered projects. It’s a buyer’s market now and customers want easy payment schemes and expect overall flexibility from developers to make their decisions," said Pankaj Bansal, director, M3M Group.

Home sales in most markets, including NCR, is recovering gradually due to lower interest rates and stagnant prices.

In the September quarter, NCR saw sales of around 6,236 units, up 59% sequentially. However, sales are still 47% lower compared to the same period last year, according to Liases Foras Real Estate Rating and Research.

NCR, which has 169,099 unsold units, saw the maximum decline in inventory of 5% among the top cities.

M3M witnessed maximum sales traction in its Gurugram residential project, where homes are priced at around 1.2 crore and is nearing completion, followed by another project priced at 1.6-1.7 crore, but with smaller unit sizes at 1,500 sq. ft.

“In the commercial office space, we are seeing a lot of interest from HNIs (high net-worth individuals) who are looking at 10,000-15,000 sq. ft of space, while residential sales are mainly led by end-users," Bansal said.

Following a prolonged slowdown in the residential sector, the covid-led lockdown also saw a shutdown in construction and buyers staying away from site visits.

Bansal said customer visits have picked up sharply, particularly during weekends.

Like many other developers, M3M stayed away from fresh project launches this year so far, but plans to launch two residential projects in Gurugram early next year.

Recently, the company acquired a 25-acre land parcel in Golf Course Road Extension in Gurugram from property developer Ireo Management Pvt. Ltd for around 250 crore, where it plans to develop a low-rise housing society.

“Given the liquidity and credibility concerns, there has been consolidation in the NCR market, leading to a few developers emerging stronger. We have been getting a number of proposals where projects are stuck or at the initial stage, and we are evaluating some of those projects," Bansal said.

In recent months, M3M has delivered eight projects, including residential and commercial offices.

It raised 570 crore debt from Oaktree Capital Management to fund its ongoing projects earlier this year.

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