Listed real estate player’s sales surge in September quarter despite drop in overall sales, say reports2 min read . Updated: 22 Nov 2019, 09:18 AM IST
- Mahindra, Brigade, DLF, Godrej, Oberoi, Kolte Patil, Sobha, Prestige, Purvankara registered an increase of 9% in sales
- These developers sold around 7.25 million sq ft in September quarter compared to 6.64 million sq ft in the June quarter
At a time when housing sales across the major markets saw a drop in the September quarter, listed players have posted increased sales numbers as per report published by Anarock Property Consultants
Nine listed players --Mahindra, Brigade, DLF, Godrej, Oberoi, Kolte Patil, Sobha, Prestige, Purvankara - registered an increase of 9% in sales during July-September quarter as compared to the previous quarter, as per the Anarock. These developers sold around 7.25 million sq ft in September quarter compared to 6.64 million sq ft in the April to June quarter.
Anuj Puri, chairman, Anarock Property Consultants said the listed players are benefitting from the consolidation happening in the industry.
“There is massive consolidation happening, with smaller companies selling their projects and land banks to the better-capitalized strong companies. These developers have vastly superior execution capabilities and capitalization, and enjoy much higher credibility with both buyers and lending institutions," Puri said.
“We are clearly seeing the emergence of strong, organized developers whose strengths are amplified, rather than diminished, by the newly regulated market environment. Even the most conservative industry estimates indicate a staggering number of developers in the top cities who have been either wiped off the map, or have merged with organized developers after DeMo and RERA," he added.
On the other hand, the overall sales registered a decline as per a report released by Liases Foras, a Mumbai based real estate data analytics company.
“The top 35 cities registered a sales of 91,115 units in September quarter. This was 2% lower than the 93,426 units sold in the previous quarter. Out of 35 cities, 22 witnessed a drop in sales," said the report.
Pankaj Kapoor, managing director, Liases Foras, said “ The ongoing NBFC crisis along with the economic slowdown woes have impacted the sales during the quarter. People are holding back their decision due to weak sentiments regarding job security. People are refraining from getting into a long-term commitment. September quarter also had Pitru Puksha a time during which people don’t prefer making big purchases such as houses."
Prices also came under pressure as per the report from Liases Foras. “Weighted average price across 35 cities exhibited a marginal drop of a percent as compared to the previous quarter. Prices dropped in 14 cities while increased in only nine cities. Among tier 1 cities, Hyderabad is the only city to show a significant increase in the price of 5%," said the report.