New Launches Down By More Than Half Of Top Realty Firms: ICRA

New Delhi: The new launches of ten major listed real estate firms in the country has gone down by more than half in the first nine months of the current quarter as compared to the same period of the previous quarter. The total space launched in the first three quarters of the ongoing fiscal stood at 10.85 million square feet while the same was 23.38 million square feet in the corresponding period of the 2018-19 financial year, according to an analysis by ratings agency ICRA.

However, in terms of total area sold, there has been some increase in the said period. The companies sold 23.96 million square feet of space in the first nine months of the current fiscal as compared to 22.56 million square feet in the corresponding period of the previous fiscal, up by 6 percent.

The data pertains to Ashiana Housing Ltd., Brigade Enterprises, DLF,  Godrej Properties, Kolte-Patil Developers, Oberoi Realty, Mahindra Lifespace Developers, Prestige Estates Projects, Puravankara Ltd. And Sobha Ltd.

The total sales value of the space booked jumped to Rs 5,980 crore in the third quarter of the current fiscal as against Rs 5,492 crore in the corresponding period last fiscal, an increase of 9 percent. But the average ticket size has gone down in the period. 

“This right-sizing and right-pricing has further strengthened the already ongoing market consolidation, which has been attributable to home-buyer preferences for products from established developers with a track record of delivery; as well as the industry-level structural changes that have taken place in the form of RERA, GST and IBC. Consequently, the larger listed players have witnessed robustness in sales levels,” said Mahi Agarwal, Assistant Vice President and Associate Head at ICRA.