Although housing sales across the major markets witnessed a decline in the September quarter, listed realty developers posted increased sales numbers, according to the report published by Anarock Property Consultants.
According to Anarock, listed players such as Mahindra, Brigade, DLF, Godrej, Oberoi, Kolte Patil, Sobha, Prestige, Purvankara registered an increase of 9 percent in sales during July-September quarter, compared to the previous quarter. Compared to 6.64 million sq ft in April to June quarter, these developers sold around 7.25 million sq ft in the September quarter.
Talking about the report, Anuj Puri, chairman, Anarock Property Consultants said, “There is massive consolidation happening, with smaller companies selling their projects and land banks to the better-capitalized strong companies. These developers have superior execution capabilities, enjoying much higher credibility with both buyers and lending institutions.”
“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.
Other than this, Liases Foras, a Mumbai based real estate data Analytics Company said, “The top 35 cities registered a sales of 91,115 units in September quarter, which is 2 percent lower than the 93,426 units sold in the previous quarter. Out of 35 cities, 22 witnessed a drop in sales.”
“The economic slowdown, along with ongoing NBFC crisis have impacted the sales during the quarter. Due to weak sentiments regarding job security, people are holding back their decision. The last quarter also had Pitru Paksha a time during which people don’t prefer making big purchases such as houses,” said Pankaj Kapoor, the managing director of Liases Foras.
“As compared to the previous quarter, weighted average price across 35 cities exhibited a marginal drop of a percent. 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 percent,” said the report.