Offers on new launches triggers the sales
According to real estate expert, home buyers are entering the market after a long wait for price correction in real estate. Moreover builders have also started to negotiate at lower price and even there are lot of transactions happening in secondary market
A recent statement by financial firm said that discounts and new launches offered by real estate developers has increased the sales volumes across cities during January-March.
Real estate experts say that the sector has stabilised in the sense that the sales are flat and the graph is no longer decreasing. Developers and builders are hoping that the market will improve in the coming months.
Godrej Properties, Sobha Developers and Oberoi Realty are among the major players who helped to improvement in sales in real estate market.
Mumbai-based Godrej Properties sold 0.5 million sq ft for Rs 530 crore during the first three months of 2013 against 0.44 million sq ft for Rs 290 crore sold a year ago.
Sobha Developers’ sales improved by around 24 per cent from a year ago to 1.07 million sq ft of space at a sales value of Rs 674 crore with an average price realization of Rs 6,295 per sq ft. The company launched 1.51 million sq ft of new projects in the quarter.
Oberoi Realty also witnessed a 13 per cent increase in sales sequentially to 0.12 million sq ft. The company’s sales, however, declined compared with a year-ago period.
Taking into consideration the cyclical nature of the real estate business, and the macroeconomic aspects globally and locally, the company will continue to be financially cautious and discover numerous options to accumulate property that make business sense for the company.
To keep up the growth, companies will have to focus on new launches as it will help them to improve their cash flow. According to real estate expert, Bangalore real estate is performing well with an average of 15- 20 percent growth in sales as it is driven by end users. But Mumbai and Delhi has seen a significant slowdown as the market is driven by investors.
Godrej Properties plans to launch around 15 projects in 2013-14 and the company is in the process of raising Rs 700 crore fund to fuel its growth plan. The company will be launching the 15 projects in Mumbai, Delhi-National Capital Region, Bangalore, Pune and Chennai. The company is also looking out for land for the same.
Godrej Properties added eight new projects in 2012-13 which include five redevelopment projects in Mumbai. The company is hoping that 2013-14 will be a better year for the real estate sector as well as the overall economic growth.
In the current financial year, Sobha Developers is planning to make an effort into new geographies like Kochi, Kozhikode (Calicut), Hyderabad and Noida and Ghaziabad region. Sobha developers believes that the market for premium housing is growing drastically and they will continue to focus in this segment. The company is well positioned for the current financial year. Sobha has a project pipeline of 8.9 million sq ft for 2013-14.
Oberoi Realty is planning to enter markets like Bangalore and National Capital Region as Mumbai is run short of vacant land and moreover lands are getting costlier. Initially they will be investing Rs 200 crores for the projects as they have to test the market before making big investments.
The company will construct residential projects in these locations and will focus on constructing projects only in the metros.
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Bangalore Real Estate, esidential projects in Bangalore, Godrej Properties, National Capital Region, Projects in bangalore, properties in Bangalore, Real-estate market, Residential real estate, Sobha Developer
