Indian realty sector developing a bit

It seems that the Indian real estate sector is refurbishing gradually as a good number of developers are reporting a steady recovery and a greater number of sales than the preceding months. What are the positions of smaller Indian cities then? They are also witnessing an upward increase but small market needs more time to get rid of problem.

Take for instance Parsvnath Developers Ltd. It is a notable New Delhi-based developer, which reported its first-quarter results recently, sold 400 apartments (600,000-700,000 sq. ft) across segments compared with sales of just 70-80 apartments during the preceding quarter. On the other hand DLF Ltd, largest developer in the domain of India by means of market value, was also to announce its first-quarter results but had not done.

As per the published report, Parsvnath reported an 81.32% drop in its profit for the fiscal first quarter ended June at Rs13.81 crore, compared with Rs73.96 crore in the year-ago period. Revenue was also lower by 69.37% at Rs115.29 crore for the quarter, compared with Rs376.42 crore in the same period last year.

Nevertheless, when it was compared with the fourth quarter of the previous fiscal, Parsvnath’s net profit increased by 19.05%, while the company’s revenue witnessed a huge 378.58% jump on account of better sales.

Speaking on this, Pradeep Jain, Chairman of Parsvnath Developer, stated, “The last two quarters were disastrous but this quarter was better in terms of sales.” “We sold apartments across segments in luxury projects such as Exotica in Gurgaon and in our affordable housing projects in Delhi’s suburbs.”

Owing to rising demand of affordable housing and the National Capital Region centered on New Delhi are also witnessing gradual recovery.

As per a report by Motilal Oswal Securities Ltd, developers such as DLF, Unitech Ltd, Indiabulls Real Estate Ltd, Housing Development and Infrastructure Ltd and Puravankara Projects Ltd launched a total of 35 million sq. ft during the first quarter out of which they sold 15.8 million sq. ft, almost half of what was launched.