The realty market failed to record sales as expected and also no significant change was noted in the number of inquiries seen during this festive season – although this varies from city to city and region to region.
Hit hard by the slowdown in the market as well as various policy reforms for some time now, the real estate sector was betting big on this year’s festive season for revival of fortunes. However, as per market sources, the realty market failed to record sales as expected and also no significant change was noted in the number of inquiries seen during this festive season – although this varies from city to city and region to region.
Talking about the festive sales, Anuj Puri, Chairman, ANAROCK Property Consultants, says, “It is still early to comment on the exact sales numbers as these are collated only at the end of a given quarter. Moreover, trends in recent years suggest that the entire fourth quarter of the calendar year denotes an auspicious time wherein housing sales rise. While q-o-q trends in 2018 suggest an increase in the sales numbers, the picture in the fourth quarter of 2018 looks slightly gloomier as compared to the preceding quarter.”
In fact, the worsening liquidity crisis in Indian real estate following the NBFC crisis – which seems to be creating more trouble than resolution – along with the scepticism of the upcoming general elections is likely to play a dampener for developers hoping to increase their sales during the quarter. As per ANAROCK data, the total absorption in Q3 2018 was 67,140 units across the top 7 cities. Given the current situation, in Q4 2018, ANAROCK predicts the overall sales numbers to either remain similar to the preceding quarter or see a slight dip of up to 2-3%.
Meanwhile, “there is no denying that Delhi-NCR seems to be one of the worst-affected realty markets among its counterparts. If we consider the sales numbers in Q4 2017 in NCR (approx. 8,200 units), then there could be a 10-12% overall increase in Q4 2018. But the sales numbers are less likely to increase this quarter from 11,360 units of Q3 2018. However, the relatively restricted new supply – a mere 3,770 new units during the festive month of October 2018 – is likely to work well for the realty market here and positively impact it in the near term,” informs Puri.
Whatever be the case, there are lots of builders in Delhi-NCR who claim to have recorded a significant rise in the number of sales during the current festive season. These builders include Gaurs Group, Gulshan Homz, Mahagun India, Saya Homes, Paramount Group, Ansal Housing, SG Estates, Ajnara India Ltd and Antriksh India.
The Gaurs Group, for instance, claims to have made a record booking of 1012 units worth Rs 411 crore during this festive season. The realty major says that it did record sales in Gaur City & Gaur Saundaryam in Greater Noida West, Gaurs Siddhartham in Siddharth Vihar (Ghaziabad) and Gaur Yamuna City at Yamuna Expressway.
Similarly, Saya Homes claims to have sold close to 75 units worth Rs 100 crore at its Indirapuram-situated Saya Gold Avenue project. The group also generated a revenue of Rs 20 crore by with booking of 25 units at Saya Zion, in Greater Noida West, during the festive season.
Another real estate developer Gulshan Homz is said to have witnessed a 25% increase in the number of queries as also a notable increase in sales at its Noida-based Gulshan Botnia project during the festive season.
SG Estates, with lucrative offers across its various projects, also claims to have made a remarkable increase in the number of sales at two of its projects – SG Benefit at Govindpuram, Ghaziabad, and SG Oasis – during the festive season.
Shri Group, another realty player offering assured gifts on every booking in their projects — Shri Radha Aqua Garden, Shri Radha Sky Park and Shri Radha Sky Garden – claims to have sold around 200 units during this festive season, while T&T Group, one of the pioneers in developing digital housing in NCR, saw a major increase in queries for its maiden project T Homes at Siddharth Vihar, Ghaziabad, where they sold 57 units, thus generating a revenue of over Rs 40 crore.
The festive season turned out to be fruitful for Antriksh India too. With lucrative offers across its projects, the group witnessed a 35% increase in the number sales at its residential projects.
Another prominent developer Sikka Group, which is developing multiple projects in NCR, witnessed good sales as well. Harvinder Sikka, MD, Sikka Group, says, “With our own-styled payments and rental plans at our residential and commercial projects across NCR & Dehradun, we witnessed over 25% increase in sales on a YoY basis.”
Giving his views on festive sales, Ankur Dhawan, CIO, Proptiger, says, “Festivities are considered auspicious and if the offers and the projects are good enough to invest, people tend to invest during the festive season. Over all, in all major cities in the country, there has been an upsurge in sales which is a good sign for the reviving realty market.”