Improvement in residential sales but dropdown in Q2 revenues
According to Knight Frank report, there was a 4 percent year-on-year decline in the cumulative revenue of Rs 67.44 billion in India’s top 25real estate companies in the second quarter.
As per the analysis done by the property consultant, there was an improvement in the sale on the residential sector. While the revenue of the top real estate companies have drastically declined by 18% in Q3FY12 and 9% in each of Q4 FY12 and Q1FY13, the margin of decline in Q2FY13 was lower at 4%.
The demand for the residential real estate has increased as there was less supply in the commercial real estate sector. Knight Frank analyzed data to check the growth in the sales volumes for a set of 14 companies among the 25 top real estate companies.
The set of 14 companies has made a sale of 8 million sq ft in Q2 FY13, which is a growth of 25.6% over a year ago. Last year, same period there was a down fall in the sales of 30 percent on a cumulative basis. The sale volume data indicated that the residential real estate market was better in compared to last year.
The demand for residential sector in the metro cities increased because there was an improvement in project approvals from the authorities. Because of the demand many real estate builders have launched many residential projects.
Mumbai realty unlikely to witness price correction
Commercial real estate, Knight Frank, Project approvals, property consultant, property in Mumbai, Real Estate Companies, Realty News, residential demand, Residential projects, Residential real estate, Residential Sector, Revenue
