Anuj Puri, Chairman – ANAROCK Property Consultants
While overall housing sales in India recorded a decline in Q2 FY20, the housing sales value of India’s top 9 listed developers stayed on course during the quarter.
On a quarterly basis, their housing sales value rose by a very respectable 5% – from approx. INR 52.5 bn in Q1 FY20 to nearly INR 55.2 bn in Q2 FY20.
On a yearly basis, the figures are a bit more sombre – these listed developers collectively saw their housing sales value rise by 2% from INR 53.9 bn in Q2 FY19. Nevertheless, growth of any kind stands out in a market which had been facing headwinds for so long.
|Housing Sales Value (INR billion)|
|Listed Builders||Q2 FY19||Q1 FY 20||Q2 FY20|
In terms of overall area-wise absorption data available as on date, the top eight listed developers collectively notched up a 5% annual increase. Available data indicates that their area-wise sales rose to 7.25 mn sq. ft. in Q2 FY20 from 6.9 mn sq. ft. in Q2 FY19.
On a quarterly basis, these real estate majors saw a 9% gain in overall housing absorption. In the previous quarter of Q1 FY20, the overall absorption recorded by eight listed developers alone was nearly 6.64 mn sq. ft.
|Absorption (mn sqft)|
|Q2 FY19||Q1 FY20||Q2 FY20|
We are clearly seeing the emergence of strong, organized players whose strengths are amplified, rather than diminished, by the newly regulated market environment.
Even the most conservative industry estimates indicate a staggering number of developers in the top cities who have been either wiped off the map or have merged with organized developers after DeMo and RERA.
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