Realty companies healthier now

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The real estate market now seems to be on the path of recovery. The debt on the country’s eight largest real estate companies has reduced by 43 percent. Where this loan was 40 thousand crore rupees in the financial year 2019-20, now this loan has remained only 23 thousand crore rupees in 2022-23.

The report of real estate advisory company Anarock shows that the demand for houses has increased. Home sales have increased. This is the reason that the debt on real estate companies has come down. Anarock analyzed the financial performance of 8 largest companies operating in the real estate sector.

These companies include DLF, Macrotech Developers (Lodha Brand), Godrej Properties, Prestige Estate Projects, Shobha, Brigade Enterprises, Purvankar and Mahindra Lifespace Developers Limited. Earlier (in 2019-20), these companies had a debt of 40,500 crores, which has come down to about 23,000 crores in the financial year 2022-23.

Anarock Chairman Anuj Puri said that now the sale of houses has crossed the pre-epidemic level and is moving towards new heights. There has been a boom in sales and revenue, so the debt had to be reduced. The cash flow of these companies has improved. The difference between gross and net debt has widened. Now the financial condition of these companies is much better than before.

There was a difference of 7400 crores between gross and net debt in FY 2020, which has reached 15200 crores in FY 2023. There has been a marginal increase in loan rates since April 2022, due to which there has also been a marginal increase in the cost of the loan. Although it is still less than before the epidemic (FY 2020).

Anarock’s research suggests that between April 2022 and March 2023, 3.65 lakh units were sold in the top seven cities. This is the highest in the last 5 years.