Established Residential Realtors Topline To Grow 35% In FY22: Report
Established Residential Realtors Topline To Grow 35% In FY22
A report said that sales of ₹34,000 crores have been reported in the first nine months of FY22
The established residential realtors' topline is anticipated to rise by 35% in FY22, it added.
It stated that increased demand for bigger houses and office spaces has led to an improvement in the market share of these players to about 22% against the 14-16% before the pandemic struck.
"Increased affordability due to low-interest rates and flattish capital values, rising demand for bigger homes, and government measures in the past two fiscals have provided a fillip to residential realty," Anand Kulkarni, a director at the agency, said.
Home prices in the top six cities are predicted to rise soon as realtors will be ratifying the impact of inflation in labor and material costs on the advancement in demand.
On the balance-sheet boosting front, the conventional realtors have deleveraged in the five fiscals through 2022 by extending equity and monetizing commercial assets and land worth ₹50,000 crores.
However, leveraged developers will lose market share as they are disabled by high debt to total assets ratio of above 50%, weak liquidity, and limited ability to raise equity or monetize commercial assets.
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