Realty firm ATS group has sold 975 flats worth Rs 1,000 crore during the last three months on improved housing demand, a senior company official said today.
Realty firm ATS group has sold 975 flats worth Rs 1,000 crore during the last three months on improved housing demand, a senior company official said today. The sales figure also includes that of Homekraft, its JV firm with HDFC Capital. Earlier, Gaurs group, another major developer in the National Capital Region (NCR), had reported sales if over 5,000 properties worth Rs 2,000 crore during the last four months.
Realtors’ body CREDAI and property consultant JLL India, in their joint report, said that housing sales in India’s top seven cities have revived post demonetisation to rise by 25 per cent in the first six months of this year. However, Knight Frank India said sales growth was marginal at 3 per cent in the same period.
ATS group launched a three-month campaign starting mid-May where it put on sale flats across 15 under-construction projects in Noida, Greater Noida, Gurugram, Mohali and Chandigarh. “There is an improvement in market sentiments leading to rise in housing demand. We sold 975 units in this three-month campaign valuing about Rs 1,000 crore,” Homekraft CEO Prasoon Chauhan told PTI.
Out of the total sales, he said about 650 units were of ATS brand and 325 units of Homekraft. The average sale price of ATS projects was Rs 1.25 crore, while ticket size of Homekraft was Rs 55 lakh. Chauhan said the end-user demand is shifting towards real estate companies having good projects execution track record.
Asked about the impact of GST, he said, “We are charging only 6 per cent GST as we are passing on the input credit”. There is 12 per cent GST on under-construction flats and no GST on completed units. “ATS has created a name in building world class projects and has earned goodwill of customers by delivering projects on time and with best in class construction quality,” ATS group CMD Getamber Anand said.
Chauhan, who is also sales head of the entire group, said this sales momentum would continue in the upcoming festive season driven by end-user demand.
ATS group has delivered 30 million square feet of residential space and is constructing 40 million square feet. In March this year, ATS group founder Getamber Anand launched a new venture HomeKraft to develop mid-income and affordable housing projects in a price range of Rs 30-70 lakh.
Recently, HDFC Capital Affordable Real Estate Fund – a fund managed by HDFC Capital Advisors Ltd — acquired a “significant minority” stake in HomeKraft and created a USD 300 million corpus to develop affordable and mid-income housing projects. HomeKraft is looking to clock sales of 6,000-6,500 units in the next 3-5 years with expected revenue in the range of USD 600-750 million. All apartments under this brand would qualify under the Pradhan Mantri Awas Yojana (PMAY) scheme, wherein, various concessional government schemes like interest subvention under credit-linked subsidy scheme (CLSS) and concessions on GST would be available.