38753Landlords gain from rental yield increase, tenants’ budget gets spoiled!

Nifty Realty was among the top-performing sectoral index on Monday surging 1.36% to 325 levels. Shares of Sobha (up 5.77%); DLF (up 3.80%) and Godrej Properties (up 3.65%) were in the limelight. One of the prime reason for this rally is a report released by ANAROCK which states that the total sales made in the first nine months of FY2021 (about 93,140 units) across the top 7 cities, the top 8 listed players’ share stood at 22% while non-listed leading players’ share was 18%. Non-branded developers accounted for a 60% share.

In contrast, of the total 2.03 lakh units sold in top 7 cities in FY2017, the share of these top 8 listed players was the lowest at about 6% while that of non-listed leading players stood at 11% and others (non-branded) had a whopping 83% share.

The increased share of these top 8 listed players over the years provides a clear roadmap of homebuyers’ evolving preferences.

The top 8 listed developers include Brigade Enterprises, Godrej Properties, Kolte-Patil, Mahindra Lifespaces, Oberoi Realty, Prestige Estates, Puravankara, and Sobha.

According to the data from these companies, they together sold around 21.23 million sq. ft. area in the first three quarters of the financial year 2021 (Apr-Dec. 2020 period) despite the first wave of Covid-19 – rising by 2% against the corresponding period in FY2020, when 20.88 million sq. ft. were sold.

Among the listed players, Godrej Properties sold the maximum in terms of area (approx. 6.64 million sq. ft.) in this period, followed by Bengaluru-based Prestige Estates with approx. 5.04 million sq. ft. space.

Speaking on this shift change, Anuj Puri, Chairman – ANAROCK Property Consultants said, “After the roll-out of structural policies including RERA and GST, organized and branded players’ dominance has risen exponentially. Homebuyer demand has tilted towards branded products. Both listed and leading developers have been catering to this new demand with projects for the affordable and mid-income segments, rather than playing only to the luxury homes gallery. This demand-supply equilibrium has helped keep the sales momentum going during the pandemic when housing demand rose significantly.”

“The top 8 listed players’ sales share increased to 22% from April to December 2020 – a major increase from 6% in FY 2017. Even non-listed leading developers have ramped up their share from 11% in FY 2017 to 18% now. It is a major and ongoing realignment in residential real estate demand and supply,” he added.

Top leading developers considered include Aparna Constructions and Estates, Assetz Property, ATS Green, Casagrand Builders, Kalpataru, Lodha Group, My Home Constructions, Piramal Realty, Runwal Group, Salarpuria Sattva, Shriram Properties, Signature Global, Sunteck Realty, TATA Housing Development Co., The Shapoorji Pallonji Group, The Wadhwa Group, and VTP Realty.

FY21 sales trend

In Q1FY21 developers were most heavily impacted by the Covid-19-induced national lockdown – saw approx. 5.16 million sq. ft. sold by the top 8 listed realty players.

While in Q2FY21 saw only a meagre increase despite easing of lockdown restrictions – approx. 5.8 million sq. ft. area was sold during the quarter. This was also because the inauspicious ‘shraad’ period in this quarter causes many buyers to steer clear of property purchases.

Whereas in the Q3FY21 the sentiment changed as the festive quarter saw a 77% rise in area sold, against the preceding quarter when approx. 10.27 mn sq. ft. area was cumulatively sold by these top 8 listed players.

For Q4FY21 the data is awaited with only three listed players – Brigade Enterprises, Oberoi Realty and Mahindra Lifespaces Developers – releasing their data. According to this, they had collectively sold approx. 3.21 mn sq. ft. in this quarter.