Share of top listed cos in home sales up from 6% to 22% in 4 years: study
The overall housing sales share of the top-8 listed realty players went up from six per cent in FY17 to 22 per cent in FY21, said a new report.
Of the total sales made in the first nine months of FY21 (around 93,140 units) across the top-7 cities, the top-8 listed players’ share stood at 22 per cent while non-listed players’ share was 18 per cent. Non-branded developers accounted for 60 per cent share.
In contrast, of the total 203,000 units sold in top-7 cities in FY17, the share of these top-8 listed players was the lowest at about six per cent while that of non-listed leading players stood at 11 per cent and others (non-branded) had as much as 83 per cent share.
The rising share of these top-8 listed players--Brigade Enterprises, Godrej Properties, Kolte-Patil, Mahindra Lifespaces, Oberoi Realty, Prestige Estates, Puravankara, and Sobha--provides a clear roadmap of homebuyers’ evolving preferences.
Together they sold as much as 21.23 million sq ft area during the first three quarters of financial year 2021 (April-Dececember 2020 period) despite the first wave of Covid-19, up two per cent against the corresponding period in FY20, when 20.88 million sq ft were sold.
Among the listed firms, Godrej Properties sold the most by area (6.64 million sq ft) in this period, followed by Bengaluru-based Prestige Estates with 5.04 million sq ft space.
Anuj Puri, Chairman–Anarock Property Consultants, says, “After the roll-out of structural policies including Rera and GST, organised and branded players’ dominance has risen exponentially. Homebuyer demand has tilted towards branded products. Both listed and leading developers have been catering to this new demand with projects for the affordable and mid-income segments, rather than playing only to the luxury homes gallery. This demand-supply equilibrium has helped keep sales momentum going during the pandemic, when housing demand rose significantly.”
He added: “Even non-listed leading developers have ramped up their share from 11 per cent in FY17 to 18 per cent now. It is a major and ongoing realignment in residential real estate demand and supply."