The June quarter data financials and sales volume of the real estate sector show that the pandemic has intensified consolidation in favour of listed large players.
Slump in demand and lack of labour for construction activities led to a sharp decline in volume and revenue of realty companies but, some of the large listed entities reported lesser fall than the overall sector.
The average consolidated residential sales value for listed players including DLF NSE 0.91 %, Godrej Properties Oberoi Realty, Prestige Estate Projects, Sobha NSE 5.86 % and Kolte-Patil Developers fell by 43% compared with the 80% drop for the sector year-on-year. The sales volume for the large players and the sector fell by 44% and 84% in the quarter.
In addition, a stronger balance sheet also helped some of the developers to boost sales through various schemes. For instance, Godrej Properties launched a developer subvention scheme due to its strong liquidity position.
Under the scheme, the company would pay the interest on the mortgage related to a new home purchase for a predefined period. This helped the company clock 71% year-on-year revenue growth in the June quarter.