Residential realty market gravitating big time towards big brands
New Delhi: The overall residential real estate market in the country remained 24 percent lower than the pre corona levels in the third quarter of the current fiscal as compared to same period of previous year. However, the top-10 listed real estate companies saw 61 percent jump in sales in the same quarter, according to a report by ICRA.
Te bigger real estate companies have benefitted due to demand consolidation and even higher credit availability. This has led to K-shaped recovery in the industry.
The same trend will have ‘adverse’ effect on the smaller realty firms and will ‘weigh heavily’ on real estate industry as a whole.
The residential real estate industry clocked 39 percent lower sales in the first nine months of the current fiscal than the same period of the previous fiscal.
The market moving towards larger and established companies resulted in share of top-10 listed firms almost doubling in the current year, jumping from mere 11 percent sales in fiscal 2019-2020 to 19 percent in nine months of the current fiscal.
These top listed players saw 61 percent growth in the third quarter of the ongoing fiscal and about 13 percent growth in nine month period of the current year.