Mumbai: Despite a slowdown in the realty sector post implementation of various policy reforms like RERA and GST, 10 leading real estate developers have recorded a 50.7 per cent growth in sales during April-December 2018, according to a report.
During the first nine months (April-December) of fiscal 2019, the sales of ten large listed entities in its sample set, stood at a robust 22.4 million sqft, registering a 50.7 per cent growth over the corresponding period a year ago, rating agency ICRA said in its report.
Correspondingly, the sales value of the area booked also increased to Rs 14,461 crore in 9 months of FY19, as compared to Rs 10,980 crore over the same period a year ago, registering a growth of 31.7 per cent. "The ongoing process of consolidation within the residential real estate segment post the implementation of structural reforms such as RERA and GST remains strong, with considerable market traction being witnessed by large organised players in recent quarters," ICRA's assistant vice president Mahi Agarwal said.
Agarwal further said that the momentum continued into Q3 FY19, despite the slowdown in NBFC financing, possibly on account of larger developers being better placed as against smaller players to grapple with the recent structural changes and liquidity issues.
Nearly 8.9 million sqft of sales were recorded in Q3 FY2019 alone, depicting the highest level of quarterly sales recorded over the past 20 quarters from FY15 onwards. "Tilting home buyer sentiment towards larger players on the back of increased transparency, a proven track record of timely execution and developer's focus on right-sizing and right-pricing of inventory have been the key drivers of this positive trend," he said.
ICRA further said that with this continuing robustness in sales, new project launches from these larger developers have also witnessed an increase, although the focus on execution and completion of ongoing projects has simultaneously been maintained.