TheNFAPost Podcast

Chennai, NFAPost: Gone are the days when branded players in the real estate industry used to focus only on luxury or ultra-luxury housing, now they have started focusing on mid-income segments, and also the affordable housing.

These branded players’ new units are priced within a budget not exceeding Rs 80 lakh.

“The luxury segment is now primarily end-user driven, and most real estate investors are now focusing on the segments that hold the highest profit potential,” said ANAROCK Property Consultants Director and Head-Research Prashant Thakur.

He pointed out that ‘Branded’ developers are not necessarily only listed players. Real estate developers who have been operating for a decade and more, newly-formed entities of large conglomerates, and also those with sizeable areas under development either locally or Pan-India, are now recognised as branded developers.

As per ANAROCK Property Consultants’ data, the first quarter of 2019 saw housing sales increase by 58% against the corresponding period in 2018 and the highest sale rate was in the affordable and mid-income segments. Also, branded players have the highest share of new launches and they have reported an increase in their net profits in the last quarter of FY19 due to higher sales and better realisation.

While Brigade Enterprises sold approx. 0.96 million sq. ft. space in Q4 FY19 (worth Rs 520 crore) – a 23% increase over Q3 FY19 (when their net profit was Rs 72.05 crore), and Sobha Limited reported 63% surge in its net profit against previous year which stood at Rs 113 crore as on Q4 FY19.

Realty major DLF also saw 76% jump in its consolidated net profit to Rs 436.56 crore during the same period while its sales booking more than doubled against last financial year, as per ANAROCK data.

Also, Puravankara reported 59% rise in its consolidated net profit at Rs 39 crore during the same period. Its Provident Housing brand contributed 58% of sales by value in FY19.

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