[INDIA REAL ESTATE NEWS] Good morning everyone I am Rumi Dhar from Kama Group.|
Here I have important INDIA real estate news to share with you which is as mention under.
Sales in luxury housing segment declined by more than 90%, with all the listed players except
Godrej reported decline in sales, according to an analysis by Investec, an international
banking and wealth management group. Of the seven listed developers it tracks, Oberoi
reported a 94% decline in sales while Sunteck reported a 46% decline. Godrej reported a
72% increase yoy given new launches and strong sales across geography.“We believe this
trend is here to stay and likely to continue for a while,” the report said.
According to the report, COVID crisis has lead to labour shortage and consequent construction
delays, collection delays and lower sales for under-construction properties and financial
difficulties for homebuyers. “This vicious cycle should further accelerate consolidation as
developers with liquidity problems get stuck in the vicious cycle of no collections due to
construction delays and in turn no construction due to cash flow issues,” it said in the report.
The demand lead by end user is expected to pick up as prices for real estate have been
stagnant for 3-4 years. “For stocks under our coverage, we believe Sunteck is well on track
with their strategy to get into affordable development in an asset light model. Oberoi is
struggling with its existing project pipeline in luxury and mid-luxury segments,” Investec said.
As per the report, construction levels for most of the developers have reached 70% of
pre-COVID levels with the lowest point during lockdown at 30% due to labour shortage.
Developers in mid luxury and affordable segment have fared better than developers with
luxury projects. “The real estate sector has been amongst the worst affected with demand
taking a severe hit on account of job losses and pay cuts,” Sobha had said in Q1’21 analyst
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