Bengaluru: Branded players in the residential property segment remained in favour as their share in new home sales was 53% till November end in 2020, indicating consumer preference for branded products being sold by builders with an established delivery track record, said a research report.
The overall share of branded players was 53% of the total supply of about 75,140 units, from a much smaller base compared to about 57% of about 237,000 units launched in 2019. Tier I real estate developers have been increasing the supply following the lifting of lockdown in May to tap into the growing demand, said a research report by Anarock Property Consultants.
“This could also be due to the liquidity crisis gripping the real estate sector for the last two years. Smaller players have had to keep away as getting funds from the banks and other financial institutions is a big challenge for them,” said Anuj Puri, chairman, Anarock Property Consultants.
In southern India, Bengaluru and Chennai are witnessing a sharp increase in share of top builders in new supply. Of the total 15,020 units launched in Bengaluru in 2020 so far, as many as 63% were by branded developers. In Chennai, too, branded developers had a 63% share of the total new launches of nearly 5,250 units this year, said the report.
InMumbai Metropolitan Regionand Pune, branded developers had 54% and 55% share of the new supply respectively. In Hyderabad, the share of branded developers was 46% while inKolkatait was 38% and in the National Capital Region it was 45%, according to the report.
“Since we announced our first virtual launch in August, we are witnessing a steady recovery process, particularly in the residential segment. I truly believe that we are well poised on the path to recovery,” said Irfan Razack, managing director, Prestige Group.
The firm has launched five projects across Bengaluru and Chennai since the lifting of the nationwide lockdown.
Chennai-based Casagrand Builder has also reported strong sales momentum and has launched five projects since July.
“Immediately after the lifting of lockdown we have seen 60-70% regular sales. Sales have been growing quarter-on-quarter as customers are willing to buy properties that are being completed on time,” said Arun Kumar, managing director, Casagrand Builder.
The residential segment, which was the worst hit due to the outbreak of Covid-19 globally, is crawling back to some recovery in the last quarter of the calendar year, with the festive season bringing some respite to builders.