Top developers in the country are seeing green shoots amid the slower sales surroundings caused by Covid-19 related issues.
For lots of developers conversion rates, from enquiries to sales, have gone up to 20-25 per cent from unmarried digits in pre-covid days as earn a living from home has change into a norm and average unit sizes also have gone up for plenty of.
Recovery is important for developers as housing sales dropped 81 per cent in the top cities in the country in April to June quarter of this year and launches have come down by 98 per cent.
And big brands are gaining from the pent up demand prior to now three months.
Mumbai-based Oberoi Realty is seeing approximately 25 per cent conversation rates of the people who visit its show flats in comparison to 10 per cent earlier, said Vikas Oberoi, chairman of Oberoi Realty.
“We have seen a V shape recovery in the residential demand in July and more in August. Despite Covid, we have seen more than 1000 people visit our quite a lot of show flats. We also see customers wanting a good brand, quality, assurance and not so fussy approximately price,” Oberoi said.
Oberoi Realty’s profit before tax fell 81.6 per cent In June quarter of FY2021.
Properties priced between Rs 60 lakh and Rs 1.2 crore of sizes 400 to 800 sq ft carpet area are in highest demand in Mumbai Metropolitan Region, Anarock Property Consultants said in a recent outline. Buyers aged between 30-35 years currently living on rent have the highest purchase inclination, it said.
Demand from non-resident Indians and finance schemes also helped give a boost to sales, developers said.
For example, for Bengaluru-based Brigade Enterprises, the conversion ratio has gone up by 20 per cent post-Covid and the average unit size has increased by almost 15 per cent in overall sales portfolio. The contribution of completed stock has increased by almost 50 per cent in overall sales, said Rajendra Joshi, CEO, Residential, Brigade Enterprises
“NRI customers contributed to 1 / 4 of our sales between April and June. Their contribution was around 12 per cent prior to Covid,” Joshi said. He said while June and July sales were at 60 per cent of pre-Covid levels, August sales are nearly touching pre-Covid covid levels.
“We can expectantly get better fully by Diwali, whether not earlier,” he said.
In Bengaluru, enquiries for larger homes have increased up to 40 per cent with property seekers predominantly scouting for 3BHKs (average 1,800 sq ft built-up area) as against the previously-preferred 2 BHKs, Anarock said.
Another Bengaluru based developer Shriram Properties earlier used to see a conversion rate of two to three per cent of complete site visits. Now the conversion rate has risen to over 15 per cent, said Murali Malayappan, chairman, Shriram Properties.
“We will’t compare the pre-Covid sales with the sales right through Covid time as the customers couldn’t visit the sites because of the lockdown and other restrictions, we clearly see an increase in the site visit conversion rate,” Malayappan said.
For Salarpuria Sattva, the conversion ratio has increased three times of what it was once right through pre-covid as there are more serious buyers in search of quality construction.
“An added virtue to the buyers are the quite a lot of schemes like pay only 25 per cent now and balance after 12 months and flexi payment options offered which helps the buyers in making decisions quickly,” said Adrija Agarwal, strategy advisor, Salarpuria Sattva.
Demand for able homes:
Mumbai-based Lodha Developers saw a 20 per cent increase in conversion in this quarter, and did 700 bookings in August this year and did a trade of Rs 617 crore.
Lodha has clocked Rs 1,175 crore trade in July–August 2020, which is nearly near to trade it did in January and February 2020, said Prashant Bindal, Chief sales officer, Lodha Developers.
“With the pandemic reinstating the sense of home ownership, there is inflow in trade since the final two months and the sales are reaching pre-Covid levels.. Considering the changing times, buyers are in search of instant occupancy, leading to a maximum demand for ready-to-move-in homes,”Bindal said.
He said the interest for that additional space is slightly observable as the group is seeing consumers in search of one bed room apartments graduating to one-and-a-bedroom half bed room apartments and in a similar way, two bed room apartment seekers are moving on for two-and-a-half bed-room apartments.
Kamal Khetan, chairman of Mumbai based Sunteck Realty, also said there is substantial demand for able homes and conversion rates have gone up 10-20 per cent depending on the categories.
Oberoi Realty is seeing approximately 25 % conversation rates from 10 per cent earlier
Brigade Enterprises’ conversion ratio gone up to 20 per cent of pre-Covid
Brigade’s average unit sizes increased by 15 per cent
Shirram Properties conversion rate risen to 15 per cent from 2-3 per cent
Salarpuria Sattva’s conversion ratio has increased three times of pre-Covid numbers