Top realty players sold properties worth $228 billion last year – but the pain is back

• The cumulative sales of top realty players like DLF, Godrej, Oberoi Realty and others raked in $228 billion in FY19 sales.
• The developers saw a 159% jump in housing sales from FY17.
• In Q2 FY20, real estate sales declined again by 9.5%.

Indian listed real estate players had a good run but in FY19 as they sold stock worth $228 billion, according to property consultant firm Anarock.

Players like DLF, Sobha, Puravankara, Prestige Estates, Brigade Enterprises, Mahindra Lifespace Developers, Godrej Properties, Oberoi Realty and Kolte Patil Developers, saw an uptick in sales for the fiscal— which rose after FY17 slowdown caused by demonetization.

The developers saw a 159% jump in housing sales from FY17 and a 63% jump from the market’s peak in FY15.

“ANAROCK research reveals that these companies together sold approximately 4 million sqft. of housing in FY 2019 as against approximately 17 million sqft. in FY17 and 27 million sqft. in FY15,” said the report.

But the elation might be short-lived. In the last two quarters, slowdown has hit the economy fast and hard— tipping housing sales out of balance, yet again.

In the second quarter of FY20, real estate players’ sales saw a 9.5% decline across nine major cities. According to a report by PropEquity, new housing unit launches too fell by 24%.

In its second quarter earnings, Oberoi Realty reported a 39% fall in sales volume. Meanwhile, Godrej Properties’ sales also fell by 33.9%.