Real estate NEW LAUNCHES ALERT! 92.5 Mn Sq. Ft. of branded housing in top Tier 1, 2, 3 cities in next 2 years - more details here
Data from the financial presentations of the top 7 listed realty companies reveals that they are gearing up to launch approx. 92.5 Mn sq. ft. of new residential space within the next 1-2 years.
Leading listed developers continue their winning streak, with homebuyer preferences increasingly favouring them. Listed players now have their crosshairs trained on tier 2 and 3 cities - for instance, Bengaluru-based Puravankara Ltd. and Sobha Ltd. will expand into Kochi, Coimbatore, GIFT City, Hosur, Thrissur and Thiruvananthapuram.
Southern India is a major focus area for these players. The listed developers considered are Brigade Enterprises, Godrej Properties, Kolte-Patil, Mahindra Lifespace Developers, Prestige Estates, Puravankara Ltd and Sobha Ltd.
See Zee Business Live TV Streaming Below:
Data from the financial presentations of the top 7 listed realty companies reveals that they are gearing up to launch approx. 92.5 Mn sq. ft. of new residential space within the next 1-2 years.
Apart from the top 7 cities, they are also zeroing in on these major tiers 2 and 3 cities - and at least 70-75% of this supply may be launched in FY2022 itself.
These listed developers' corresponding financial presentations data from previous financial years indicates a steady y-o-y growth in new launches. Despite Covid-19 in FY2021, the total new launches by these top 7 listed players rose by 11% against the preceding FY - from approx. 28.3 mn sq. ft. in FY2020 to approx. 31.37 mn sq. ft. in FY2021.
The current expansion pipeline of approx. 92.5 Mn sq. ft. clearly indicates that strong, listed developers will continue to dominate the new residential supply and accelerate their market share gain.
“Covid-19 has driven a lot of latent demand into tier 2 and 3 cities," says Anuj Puri, Chairman - ANAROCK Property Consultants. "This demand is driven by the improved economic growth, infrastructural developments, lower cost of living and more attractive real estate prices in these cities. However, it is the new work from home dynamic which has worked most strongly in their favour as they continue to attract migrant professionals riding on the WFH option."
The days when these cities’ residential supply was dominated by local players will soon be over. Demand is also chasing projects by leading developers, so their expansion into tier 2 & tier 3 cities is a given.
“These players have extremely ambitious expansion plans for the next two years,” says Puri. “Even if 70% of their total projected new supply of approx. 92.5 Mn. sq. ft. is launched in FY2022, they will have doubled their footprint as against the preceding financial year 2021, when they launched approx. 31.37 Mn sq. ft. residential space.”
The robust housing sales by the top 7 listed real estate players in the previous financial years has been a huge confidence booster for them. Data indicates that these listed players cumulatively sold approx. 32.61 Mn sq. ft. of housing in FY2021 despite the pandemic - an increase of 7% over FY2020, when approx. 30.45 Mn sq. ft. area was sold.
The direction of housing demand after the pandemic started unfolding now guides their next steps - tier 2 and tier 3 cities are definitely the new growth precincts to explore.
(Reported by Deepak Yadav)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
01:03 PM IST