At a time when the real estate sector as well as several housing projects have been hit hard due to the spread of the Covid pandemic and the resultant lockdown, some developers claim to have recorded robust sales.
At a time when the real estate sector as well as several housing projects have been hit hard due to the spread of the Covid pandemic and the resultant lockdown, some developers claim to have recorded robust sales owing to a shift in consumer behavior towards owning a home vis-à-vis renting and also because compared to the highly volatile financial and equity markets, real estate continues to be a safe performing asset. The Gurgaon-based M3M Group and the Mumbai-based Lodha Developers are some of them.
The M3M Group claims to have recorded sales worth Rs 1150 crore during the July to August 2020 period on launching its Unlock Gurugram campaign, and having struck the right note with the end consumer, the company is now targeting sales of Rs 2200 crore, across verticals, in the festive season of October-November. These projects are situated on the Golf Course Extension Road, a high growth corridor of Gurugram.
Commenting on the same, Pankaj Bansal, Director, M3M Group, said, “We are elated to share that we have recorded sales worth Rs 1150 crore on launching our Unlock Gurugram campaign. As we set out to create a campaign, the word ‘lockdown’ figured most prominently in our conversation. We realized ‘Unlock’ would be the most apt antidote for people to come out of their fear zones and get into action, considering their financial security in the future.”
The COVID-19 has pivoted the focus on financial security and sound investment backup. Now prospective customers also comprise a younger lot, considering buying houses for both personal use as well as for investment purposes. “Our campaign bolstered the consumer sentiment, looked at propositions for the market in keeping with what would be the trend in the post-Covid world. With our bold campaign offerings, in a short span of 30 days we achieved these sales figures – Rs 350 crore in under construction – residential; Rs 150 crore in delivered residential; and Rs 650 crore in retail and offices,” he added.
As per the company, it had anticipated more demand in the premium residential segment of Rs 1-2 crore. However, it surprisingly did amazingly well with the commercial, retail segment as well. Unit-wise sales have been 65:35 for commercial v/s residential.
The Lodha Group has also recorded sales of Rs 1150 crore during July-August 2020. “Over a span of past few months, the Lodha Group had witnessed a positive shift in consumer behavior towards owning a home vis-à-vis renting, and an increasing preference for ready-to-move-in homes as well as integrated living developments. Homebuyers are now seeking spacious apartments with decks, balconies, garden area, walking arena, which accentuates the need for healthy living. Catering to the evolving demands, we clocked over Rs 550 crore of sales for the month of July 2020 and over Rs 600 crore of sales in the month of August 2020,” said a company spokesperson.
A recent study by ANAROCK has also revealed that predominantly, serious end-user enquiries have increased to 40% of the pre-COVID-19 levels, while site visits are increasing steadily.
Talking about the growing realty sales, Anuj Puri, Chairman, ANAROCK Property Consultants, said, “Sales are indeed taking place, as ANAROCK’s own sales volumes clearly indicate. It has become a popular perversion of ground realities that the lacklustre job situation people has, had a unilaterally depressing effect on housing demand. While salary cuts have indeed been a norm, not everyone has lost their jobs and a huge number of people now want to secure themselves against future upheavals by owning a home. In that respect, the coronavirus has pushed innumerable fence sitters off the fence and onto the market.”
It may also be because of the reason that when compared to the highly volatile financial and equity markets, real estate continues to be a safe performing asset.