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Top nine listed real estate developers witness 57% Y-o-Y growth in sales booking revenue in H1 FY22 –

Representational image.

The top nine stock exchange-listed developers raked in Rs 14,883 crore of booking revenue in H1 FY22 – a sharp uptick from Rs 9,483 crore in the same period of the previous fiscal, an analysis by Anarock Research has said.

Even as the second COVID-19 wave wreaked economic havoc during Q1FY 22, these players effectively clocked a 57 percent annual growth in their overall residential booking revenues in H1 FY22.

As much as 18.46 mn sq. ft. of residential area was sold by these players in H1 FY22 against 13.28 mn sq. ft. in the year-ago period, which means a yearly growth of 39 percent. The total residential area sold in H1 FY22 surpassed corresponding pre-COVID-19 period when approximately 17.2 mn sq. ft. area was sold, it said.

 The top nine listed players collectively sold homes worth Rs 10,669 crore in Q2 of FY22 (July to September). Their booking revenue in this given quarter rose by a staggering 89 percent against the same period in the last fiscal (Q2 FY21), when it was  Rs 5,645 crore, it said.

The total area sold by these developers in Q2 FY22 also saw an 83 percent growth – from approximately 7.38 mn sq. ft. in Q2 FY21 to nearly 13.47 mn sq. ft. in Q2 FY22.

As for the first quarter of FY22 (when the second pandemic wave was at its worst), the top nine listed players sold approximately 4.99 mn sq. ft., while a year ago in Q1 FY21, the area sold was more at 5.9 mn sq. ft, it said.

While in the first quarter of FY22, the total area sold by these top nine developers saw a yearly drop of 15 percent compared to Q1 FY21, their booking revenue was 10 percent more than the preceding period – approximately Rs 4,214 crore in Q1 FY22 against Rs 3,838 crore in Q1 FY21. This may indicate higher sales in the mid to premium categories, the analysis said. 

The top listed developers analysed are Sobha Ltd,  Puravankara Ltd, Prestige Estates, Brigade Enterprises Ltd, Mahindra LifeSpaces Developers Ltd, Godrej Properties Ltd, Oberoi Realty Ltd, Kolte-Patil Developers, and Macrotech Developers (previously Lodha Group). ANAROCK has collated data as per investor presentations of each of the companies.

Driven by homebuyers’ increasing preference for branded homes, the listed developers have once again out-performed the market. Notably, these players have also reconfigured their supply pipeline to deliver projects in the affordable, mid-segment and premium segments. The ongoing low-interest rate regime and homebuyers’ desire to avoid construction-related risks also played a role.

“In terms of area, these nine listed developers sold approximately 18.46 mn sq. ft. of housing space in H1 FY22, again in remarkable contrast to approx. 13.28 mn sq. ft. in the corresponding period a year ago. Amounting to an annual growth of 39 percent, the total residential area sold in H1 FY22 has also surpassed that of the corresponding pre-COVID-19 H1 period (FY20 period), when approximately 17.2 mn sq. ft. area was sold,” said Anuj Puri, Chairman – ANAROCK Group.

“Less than a decade ago, a largely speculator-driven housing market saw unnatural demand chasing the wrong kind of supply,” says Puri. “Today, these players are unleashing right-priced, right-sized supply clearly aimed at organic end-user demand. This is the result of intensive market research before pressing the ‘commit’ button and is one of the most notable features of the reinvented Indian housing market.”