Real estate industry puts hope on big launches after Covid to push sales: report
Real estate developers are preparing to launch a number of housing projects from July as lockdown restrictions relax in the country. The second wave of the COVID-19 pandemic had suspended all business activities and developers had to postpone the launch of projects.
While this quarter would be a failure in terms of sales and launches, new launches slated for the second half of this year are expected to generate the bulk of FY22 sales, said a report in the newspaper mint.
India’s largest real estate developer, DLF Ltd, had launched projects totaling 1.5 million square feet in 2020-2021 and is targeting 8.3 million square feet of residential launches this fiscal year after encouraging sales figures. Over the next few years, it plans to launch projects of approximately 35 million square feet.
DLF is targeting bookings of Rs 4,000 crore in 2021-2022 thanks to its strong launch pipeline, in accordance with its post-benefit appeal.
Bengaluru-based Prestige Estates Projects Ltd is expected to launch 12-15 million square foot residential properties in South India, Noida and Mumbai, between July and December, reported the economic daily.
It had launched 4.7 million square feet of new projects in the March quarter, which was 30% of the fiscal year 21 gross sales value of Rs 5,460 crore. He expects strong stimulus in demand across all segments from the September quarter onwards if the impact of the second wave wears off in the coming months.
“There is a huge pipeline of new offerings expected to hit the market,” said Pankaj Kapoor, Founder and Managing Director of Liases Foras Real Estate and Research. Kapoor also estimated that after a lull in launches of almost a year, around 70,000 homes have been launched. between January and March 2021.
Another big player in the real estate market, Lodha Group, in its presentation to investors, revealed its intention to launch new projects amounting to 4.3 million square feet in the metropolitan area of Mumbai (MMR) and Pune. Lodha Group is entering new micro-markets with these new launches and is also expected to expand in Pune.
According to a memo from ICICI Securities, Oberoi Realty expects new launches in the second half of the year at Thane and projects underway once foreclosure restrictions are relaxed further. Although details are not yet known, Oberoi Realty is expected to generate sales of at least Rs 2,500 crore and Rs 3,500 crore in FY22 and FY23, respectively.