First half of the current financial year was a non-eventful one for residential developers in the country. Further, heavy monsoon season along with overall macro-economic uncertainty forced developers to hold back their launches in the second quarter. However, leading developers are expected make up for the lost time in the coming months. Leading developers have a slew of launches and activation schemes lined up to coincide with the festive season in in the third quarter with more launches planned in fourth quarter as well.
It may be remembered here that Oberoi Realty had recently launched the Maxima tower in its JVLR, Andheri project of 180 units with average ticket size of Rs3.5-4 crore with potential sales value of over Rs700 crore. Further, Oberoi’s Goregaon Phase 3 and Thane, both in Mumbai Metropolitan Region (MMR), launches are also expected in current quarter itself. Godrej Properties (GPL), a prominent player in MMR, has already begun marketing new launches from September 2019 itself. GPL has several major launches like Godrej Nirvaan at Kalyan, Mumbai and Godrej Nest in Kandivali (E) in Mumbai’s Western suburbs. On the other hand, Sunteck Realty hopes to launch Phase 3 of ODC, Goregaon by January 2020 and second phase of Naigaon affordable housing project around Diwali. The recent Andheri (W) project acquisition is also scheduled for launch in fourth quarter. DLF, a major player in the NCR market, is expected to shortly launch subsequent phases for sale in its New Gurugram (Manesar) projects in October 2019.
It should be noted that MMR and NCR account for nearly 70%, by value, of the stuck projects and the trend indicates that small time players are on their way out. This gives an opportunity for the larger players to capitalise even in a weak market.
On the other hand, the South India market has been seeing stable demand with developers largely focusing on mid-income and affordable housing launches. Prestige Estates has lined up many launches in the second half. Brigade Enterprises is launching new phases of its existing projects such as El Dorado and Cornerstone Utopia in addition to the Brigade Showcase event in the Middle East along with a Dusshera Home Fest in the city of Mysore. Sobha will be releasing new inventory in its existing projects along with new launches across South India.
Thus, second half of the fiscal year will be a hectic one for most of the major players in the residential segment.