Even as analysis studies speak about revival in residential gross sales of listed realty companies, the entire internet gross sales figures don’t present such buoyancy.

Total internet gross sales posted by these corporations within the June quarter of the present monetary 12 months are simply half of the best quarterly gross sales determine within the March quarter of FY19. The This fall of FY19 determine was the best gross sales they posted thus far within the final 45 quarters.

In This fall of FY19, the highest listed corporations posted whole gross sales of Rs 20,220 crore, whereas in Q1 of FY22, they posted gross sales of Rs 11,107 crore, knowledge culled out by Business Standard Research Bureau confirmed.

The This fall of FY19 gross sales numbers excluded these of property developer Macrotech promoted by the Lodha group. However, Q1of FY22 figures included them as Marcrotech was listed in April 2021. Macrotech is the second largest listed developer when it comes to market capitalisation.

In Q1 of FY22, Macrotech’s income decreased 37 per cent sequentially to Rs 1,605.4 crore. In the primary quarter, income of those corporations had been 4.5 occasions lesser than the best quarterly income posted by them in Q3 of FY18, knowledge revealed.

Abhishek Shukla, affiliate director, India Ratings and Research, stated the unusually low income and revenue in FY22’s first quarter mirror low venture completion that was doubtless pushed by sluggish development throughout the pandemic.

“On the other hand, bullish consultants are talking about new bookings of flats, which are not called revenue in industry parlance. It will result in revenue when the projects concerned get completed,” Shukla stated.

On an trade degree, residential gross sales have risen 93 per cent within the second quarter of this calendar 12 months (CY) within the prime seven cities. This is because of a low base within the second quarter of calendar 12 months 2020 that noticed the primary wave of Covid. Also, builders actively pushed merchandise by way of expertise, which gave a fillip to gross sales, Anarock Property Consultants had stated earlier.

However, house gross sales dropped in Q2 of CY21 by 64 per cent in comparison with the second quarter of 2019, the pre-Covid 12 months, and 58 per cent on a quarterly foundation (in comparison with Q1 of CY21), stated the report.

Unsold stock throughout the highest eight markets, Knight Frank stated, dropped by 1 per cent to 446,787 models within the first half of the 12 months. The age of unsold stock additionally elevated throughout the eight main cities to 16.4 quarters from 15.4 quarters a 12 months in the past, it stated.

According to the brand new accounting norms of venture completion, actual property corporations recognise income and revenue in a single shot when a venture is over. This accounting apply known as Ind AS 115 got here round FY18. However, completely different corporations adopted it at completely different occasions.

Kapil Banga, assistant vice-president and sector head at ICRA stated that the score agency sees that gross sales and collections within the residential actual property sector have picked up since H2 of FY21.

Pirojsha Godrej, chairman of Godrej Properties, stated when actual property corporations speak about quarterly gross sales, they’re referencing bookings completed throughout the quarter, not accounting income.

Ashish R Puravankara, managing director (MD) of property developer Puravankara, stated “We cannot draw any tangible insights if we compare the 2017 figures with the current year. A myriad of situational factors must be considered to make a sound comparison. In 2017, the advent of RERA (Real Estate (Regulation and Development) Act) and GST (goods and services tax) transformed the industry, boosting customer sentiment. In 2021, the realty market is trying to navigate the repercussions of Covid-19, and buyers are cautious.”


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