Residential real estate has shown muted growth in the third quarter and that has not come as a surprise for the investors. One highlight of the residential real estate in the third quarter is the resilient southern market which has forced many real estate consultants searching for reasons.
General poor show in FY 2020 notwithstanding, current year for real estate sector can be one of hopes as the players are readying for slew of new launches. Our survey among the cross section of the realtors and real estate consultants reveal that though the overall market sentiment for purchasing residential property is weak, there is enough interest for new launches from leading, organised developers with a strong execution track record. With a number of small and marginal players grappling with high debt, funding crunch and stalled projects, home buyers have also become more discerning over the last three years. Further, with mortgage rates hovering between 8-9% and developers focusing largely on the mid-income/affordable housing segment to drive volumes.
For example, Godrej Properties has an aggressive pipeline of 7-8 launches lined up most of which are likely to materialise in the fourth quarter of this financial year itself. The realtor has already launched high value projects such as RK Studios in Mumbai and many projects in NCR and Bengaluru. In the second half of 2020 calendar year, Godrej has a number of high value launches lined up including Bandra and Vikhroli launches in Mumbai, recently acquired Ashok Vihar project in New Delhi and a number of other mid-income housing launches.
Similarly, Oberoi Realty has a number of launches lined up in current calendar year. The new launches include the Maxima tower at JVLR, Andheri which had a soft launch in October 2019. Oberoi also plans to launch its Goregaon Phase 3 and Thane projects in the first half of next financial year.
Sunteck Realty’s recently acquired Andheri (W) in Mumbai is slated for launch in the first quarter of next financial year. Sunteck also expects to commence construction of its annuity assets of 3msf at ODC in Goregaon in next financial year in a phased manner.