DLF Ltd., India’s largest property developer by sales, said Tuesday it sold 2,500 housing units in the first quarter ended June 30 as residential demand rose between 15% and 20% during April and May.
Sales in April and May were exceedingly good in Delhi, Gurgaon, Bangalore and Hyderabad cities,” DLF’s group executive director, Rajeev Talwar, said at an industry conference.
Demand also picked up in Chennai and the southern state of Kerala, he said.
Increased borrowing costs and high property prices in a slowing Indian economy reduced demand for residential apartments, shopping malls and cineplexes last year.
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The quarter ended March 2009 turned out to be real estate major DLFs worst ever quarter since its listing in June 2007.
A 72 per cent decline in consolidated sales to Rs 1,122 crore and 93 per cent dip in net profits to Rs 159 crore for the latest ended quarter compared to a year ago numbers, comes on the back of a property slump and liquidity crunch borne by real estate developers across the country.
The financials for the full year ending March 2009 appeared relatively less dismal with sales declining by 28 per cent and net profits lower by
The real estate sector, which has been languishing for some time, appears to have found its feet with focus on affordable housing and this may reflect in the June quarter results of the companies. The move has led to higher sales for many companies, but on the flip side, it has also impacted the margins negatively. The reason being that the mid-segment housing is a high volume, low margin business.
The June quarter results, therefore, may be a tad better on a quarter-on-quarter basis. But much lower than those reported in the corresponding period of the previous year. The average
Slowdown in housing has now spread to office rentals. Gurgaon and some business districts in Delhi have seen a decline of up to 25% in office rentals in the June quarter. Meanwhile, office space demand saw marked moderation in Mumbai and Bangalore as office occupiers deferred their expansion and downsized their commitment.
According to the international property consultancy firm CB Richard Ellis latest report, the average rental in Gurgaons grade A office properties has declined from Rs 105 per sq ft to Rs 95 per sqft in June quarter, compared to the March quarter on the back of increased supply
Developers who have been hiking rates of apartments hoping to cash in on the demand have lost out — as far as sale in the second quarter of 2009 is concerne— to those who held on to reasonable prices.
The average price of housing stock unsold in the second quarter of 2009 was 56 per cent higher than the average price of apartments sold. The average price of the net residential sales in the Mumbai Metropolitan Region (MMR) between April and June is Rs 3,438 per sq-ft, while the average price of the net unsold property for the same period
The countrys largest real estate developer, DLF, sold apartments worth Rs 1,000 crore in December. This is the highest monthly sale the company has recorded in its history. There are many developers like DLF who have seen a surge in the sale of apartments across the country in the quarter ended December, especially in the luxury and semi-luxury category.
A large chunk of DLFs sales are also from the luxury and semi-luxury segments. It sold 76 apartments of Rs 5 crore each in The Magnolias, Gurgaon, netting nearly Rs 400 crore. The project has apartments of 5,825 sq ft each and
