 "Realty boom: Godrej Properties, Macrotech drive Rs 35,000 cr sales")
Twenty six of India's largest listed real estate firms have reported combined sales bookings of nearly Rs 35,000 crore during the September quarter of the fiscal year 2024-25 and the bulk of these sales, driven by strong demand in the residential segment, reflects the ongoing recovery in the housing market post-pandemic, reported PTI after compiling data from regulatory filings.
These firms reported a combined total of Rs 34,985 crore in sales bookings for Q2 FY25. Godrej Properties emerged as the standout performer, with pre-sales of Rs 5,198 crore during the July-September period, leading the pack as the largest listed real estate player.
Strong Demand: The strong demand for residential properties, particularly in key markets like Delhi-NCR, Mumbai, and Bengaluru, has fueled the growth.
Strong Sales Across Key Players
Other notable players who saw strong sales include Mumbai-based Macrotech Developers Ltd (selling properties under the Lodha brand), which reported sales of Rs 4,290 crore in the September quarter. Delhi-NCR’s Max Estates clocked Rs 4,100 crore in sales bookings, while Bengaluru’s Prestige Estates Projects achieved Rs 4,022.6 crore.
Signature Global, known for its housing projects in Gurugram, reported Rs 2,780 crore in pre-sales during the quarter.
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DLF Struggles Amid Decline in Sales
However, not all players saw growth. DLF Ltd, India’s largest realty firm by market capitalization, saw a sharp decline in sales bookings during the period, with a drop to just Rs 692 crore in Q2 FY25, down from Rs 6,404 crore in the previous quarter. The company’s poor performance was attributed to the absence of new housing project launches during this period.
Other companies like Brigade Enterprises Ltd (Rs 1,821 crore), Oberoi Realty (Rs 1,442 crore), and Aditya Birla Real Estate (Rs 1,412 crore) also reported healthy sales, albeit not as large as the top performers.
Bengaluru-based Puravankara and Sobha achieved Rs 1,331 crore and Rs 1,178.5 crore in sales, respectively, while Delhi-based TARC Ltd had a solid quarter with Rs 1,012 crore in pre-sales.
Smaller Players Also See Growth
Despite the challenges, several smaller players reported positive results.
- Pune-based Kolte-Patil Developers achieved Rs 770 crore in sales
- Mumbai-based Keystone Realtors (under the Rustomjee brand) posted Rs 700 crore.
- Other players like Ashiana Housing (Rs 673 crore) and Shriram Properties (Rs 568 crore) also saw significant sales bookings
However, there were also firms that struggled with sales below Rs 500 crore, including Mahindra Lifespace Developers Ltd (Rs 397 crore) and Arvind Smartspaces (Rs 464 crore), among others.
Factors Affecting Performance
- A portion of the market slowdown can be attributed to the inauspicious Shraadh period, which typically sees a dip in property sales.
- Additionally, the monsoon rains and delays in regulatory approvals for new projects also impacted the sales figures of some companies.
Branded Developers Benefit from Revival
The revival of the real estate market post-COVID has led to a significant shift in consumer demand. Homebuyers are increasingly favoring well-established and reputed brands with a strong history of delivering projects on time. This trend is particularly evident in the growing demand for properties from listed real estate firms and larger developers with proven track records.
In contrast, many buyers are hesitant to engage with developers who have faced legal or financial troubles, as seen with several NCR-based builders like Unitech and Jaypee Infratech. These companies have left thousands of buyers in limbo, leading to ongoing legal battles and grievances with real estate regulatory authorities. With PTI inputs