Demand for housing is picking up at all price levels, and is almost back to pre-slowdown levels, if realtors’ sales figures in the first few months of this year are anything to go by.
Projects are being sold within days of launch. Earlier this week, Emaar MGF sold 650 flats, priced Rs 48-80 lakhs, in its Palm Hills project in Gurgaon within a day of its launch. “This is incredible.... to sell 650 flats in a day,” said a senior company official on the condition of anonymity.
Last month, the country’s largest real estate developer, DLF, announced that they sold out 1,200 units of independent floors, priced Rs 30-60 lakhs, in its Panchkula Valley housing project near Chandigarh within a week of launch. “The demand for housing segment is definitely picking up, and we are witnessing record sales in properties which are well located and priced well. This is primarily because of the economic recovery. Residential is the first segment which witnesses growth. I believe if the economic growth sustains, we will witness the same demand in the office space as well as retail sector,” said Rajeev Talwar, executive director, DLF.
Noida-based Logix Group also sold out 800 flats in its Blossom County project within a month of its launch. “The demand that we are witnessing is phenomenal and we are now back at the stage of pre-slowdown time. I expect this growth to continue further,” said Shakti Nath, chairman and managing director of Logix Group.
Supertech Ltd, another Noida-based company, sold 500 flats in its Eco Village project in Noida Extension in three days. Though the foundation stone of the project is yet to be laid, the the company has already sold one-third part of the first phase project.
“We have sold 500 flats in last three days, and we expect to sell many more units in the next 10 days, as we will be offering inaugural discount of two per cent to the customers. Most of the houses that are sold are two-bedroom (795 sq ft) flats, priced around Rs 16 lakh. The one-bedroom (550 sq. ft) flats, priced Rs 9.85 lakh, have also seen good demand,” said R K Arora, chairman and managing director, Supertech Ltd.
| RECORD HOME SALES IN 2010 | ||||
| Developer | Sale value (in Rs lakh) | Units | Launch date | Sold in (days) |
| Emaar MGF | 48-80 | 650 | 10-Mar | 1 |
| Supertech | Oct-50 | 500 | 8-Mar | 3 |
| DLF | 30-60 | 1,200 | 19-Feb | 7 |
| TDI Infrastructure | 21-34 | 700 | 11-Feb | 15 |
| Logix Group | 24-150 | 800 | 10-Feb | 30 |
| Omaxe | 32-190 | 594 (plots) | 30-Jan | 5 |
| Jaypee Greens | 54-220 | 700 (plots) | 15-Jan | 4 |
| Source: Companies | ||||
Realty consultants believe the demand is sustainable at all price points, if the economy continues on the recovery path.
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According to Anshuman Magazine, chairman and managing director, CB Richard Ellis, “There has certainly been a rise in demand across the segment because the market sentiments have improved. There have been salary increases for most employees and this has a direct impact on the real estate segment. I believe the National Capital Region and Mumbai have the highest demand, followed by Bangalore, Chennai, Kolkata and Pune. Most of the projects that are doing well are located in a decent area and priced very competitively.”
Agrees Santosh Kumar, chief executive, operations, Jones Lang LeSalle Meghraj (JLLM): “Once the buyers see value in pricing, they immediately want to own that property. That’s why we are witnessing so many flats being booked within a few days from the announcement of the project.”