India’s Real Estate Sector Achieves Rs 35,000 Crore Sales in Q2

India’s 26 major listed real estate companies reported combined property sales worth Rs 34,985 crore during the July-September 2024 quarter, as per regulatory filings. The surge in demand was primarily driven by the residential sector, despite challenges such as monsoon rains and regulatory delays.

Leading Players in Q2 Sales

Godrej Properties led the market with pre-sales of Rs 5,198 crore, emerging as the top-listed developer. Following closely was Macrotech Developers (Lodha), which achieved sales of Rs 4,290 crore. Max Estates, based in Delhi-NCR, secured Rs 4,100 crore in sales, while Prestige Estates from Bengaluru clocked Rs 4,022.6 crore. Signature Global also performed well, with sales of Rs 2,780 crore, driven by robust demand for housing projects in Gurugram. Several other notable performances in sales include Brigade Enterprises (Bengaluru) at Rs 1,821 crore, Oberoi Realty (Mumbai) at Rs 1,442.46 crore, Aditya Birla Real Estate at Rs 1,412 crore, Puravankara Ltd at Rs 1,331 crore, and Sobha Ltd at Rs 1,178.5 crore.

Challenges in Sales for Some

Not all players witnessed strong performances. DLF Ltd., the largest real estate firm by market capitalization, experienced a sharp decline in sales bookings, down to Rs 692 crore from Rs 6,404 crore in the first quarter. The lack of new project launches and the inauspicious Shraadh period were key reasons for this decline.

Smaller developers, such as Mahindra Lifespace Developers Ltd. and Arvind Smartspaces, also reported lower pre-sales at Rs 397 crore and Rs 464 crore, respectively.

Factors Influencing Market Trends

 The residential real estate market has seen a significant revival post-COVID-19, fueled by pent-up demand and a growing desire for homeownership. Developers with strong reputations and a proven track record of delivering projects have benefited the most.

Shift Toward Trusted Developers: Consumer preferences have shifted towards established brands, reflecting concerns over unreliable projects. This trend has been especially prominent in regions like Delhi-NCR, where buyers of stalled projects by developers such as Unitech and Jaypee Infratech are still battling legal disputes.

Rising Housing Prices and Future Outlook

Housing prices have appreciated significantly, further boosting sales for reputed developers. Branded players, both listed and unlisted, have gained the trust of buyers and dominated the market during this revival cycle. Although some companies faced slower sales in the second quarter, the overall residential sector remains resilient, driven by high demand for quality housing from reliable developers. The continued preference for trusted brands is expected to shape the market positively in the coming quarters.

With PTI Inputs