Despite a slight revenue decline of 0.3% to Rs 909.97 crore in Q1FY24 due to reduced bookings, prominent property developers are looking forward to a robust 15-20% sales upswing during the forthcoming 45-day festive season. Their optimism stems from the buoyant consumer sentiment and a notable increase in inquiries leading up to the festive period.
Vikas Oberoi, Chairman and Managing Director of Oberoi Realty, expressed confidence in the weeks ahead. He stated that all of their projects are experiencing strong sales traction, with Eternia and Enigma projects in Mulund having already seen handovers and forthcoming possessions scheduled for December at Sky City in Borivali. Oberoi Realty’s Q1FY24 revenue dip of 0.3% was primarily attributed to reduced bookings.
Shapoorji Pallonji Real Estate (SPRE) anticipates a 10-15% growth in transaction numbers compared to the previous year, driven by plans to simultaneously launch two to three new projects in line with the festive spirit. Their analysis indicates that Bengaluru, Mumbai, and Pune will continue to witness high transaction volumes. The real estate market saw a 19.7% quarter-on-quarter surge in property demand for April-June. Additionally, rental rates across India have shown an average 4.9% quarter-on-quarter increase.
Malayappan Murali, CMD of Shriram Properties, a Bengaluru-based developer, is also eyeing a 15-20% growth compared to last year’s festive season. Strong sustenance sales in ongoing projects and two successful launches in Q1FY24 propelled a remarkable 47% growth in sales value to Rs 459 crore for Shriram Properties.
Ramesh Ranganathan, Chief Executive at K Raheja Corp Homes, expects a similar 15-20% growth, driven by expanding urban landscapes, rising household incomes, and burgeoning aspirations. While affordable and mid-range housing remains in demand, the luxury real estate sector is witnessing a surge in new residential projects, with price tags ranging from Rs 2-3 crore to as high as Rs 15 crore.
Many top developers, including K Raheja Corp, are unlikely to offer discounts during the festive period due to robust demand. Focusing on markets in Mumbai, Pune, Hyderabad, and Bengaluru, these developers anticipate heightened demand.
Oberoi Realty, conversely, will adhere to competitive pricing strategies. Chairman Vikas Oberoi emphasized their commitment to providing consumers with high value for the price they pay.
Brigade Enterprises has planned new product launches in key markets to meet customer expectations and evolving preferences. Oberoi Realty has also lined up projects in Goregaon and Thane near Mumbai for the festive season.
According to Anuj Puri, Chairman at Anarock, the Indian residential market is poised for a surge in new launches this festive season as developers seek to capitalize on the unwavering homebuyer demand. Many developers adopted a wait-and-see approach in the first half of 2023 but are now prepared to launch projects.
Kamal Khetan, Chairman at Sunteck Realty, echoed this sentiment, stating that the residential market is gearing up for new launches, with improved customer sentiment expected to drive significant sales growth.
As the festive season approaches, these property developers remain optimistic about capitalizing on the positive consumer sentiment and robust demand in the Indian real estate market.