The major real estate players double their market share: ICRA


Large developers have benefited from a consolidation of demand and better availability of credit.

The residential real estate sector is experiencing a K-shaped recovery, with large listed players recovering at a much better pace than smaller unorganized players, rating agency ICRA said on Tuesday.

The ICRA and its subsidiaries together form the ICRA Group of Companies (ICRA Group). ICRA is a public limited company whose shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

While the market as a whole remained 24% below pre-Covid year-over-year levels in Q3 FY21 and 39% below pre-Covid levels at 9M FY21, the top 10 listed real estate players have recorded a year of 61%. year-on-year growth in Q3 FY21 and growth of 13% in 9M FY21.

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This disparity in sales growth rates has led to accelerated consolidation in the wake of Covid-19 and the market share of the top 10 listed real estate players has almost doubled in the current year, from 11% of sales. in FY20 at 19% in 9M FY21.

Large developers have benefited from the demand and better availability of credit. Also in terms of launches, their market share increased from 11% in FY20 to 22% in 9M FY21.

CIFAR senior vice president and group leader Shubham Jain said Covid-19 triggered one of the worst demand drops in history, with home sales volumes falling by 62 % year over year in the first quarter of fiscal year21 in the eight major cities.

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While negative growth was capped at 24 percent in Q3 FY21, the big players recorded a much better recovery, recording year-over-year sales growth of 61 percent in Q3 FY21. Homebuyers have leaned towards developers with a proven track record of delivering quality projects on time, even before the pandemic began.


“This had led major listed players to report healthy sales and collections in recent years despite the liquidity crisis and unfavorable supply-demand dynamics. The implementation of RERA and GST had already supported the market position of these large players, ”Jain said.

After Covid-19, better demand prospects, strong balance sheets and adequate liquidity made it easier for large developers to weather the storm than smaller players who struggled to cope with market conditions.

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“A gradual unlocking of the economy and pent-up demand have supported home sales. In addition, the rate of pension-linked loans for home loans has reached an all-time low. This has improved affordability and boosted buying. housing, ”Jain said.

Interesting discounts and payment plans have further stimulated. With the onset of the pandemic, home ownership and vacation home ownership has also become more important.

On BSE, the ICRA closed Rs 2,750, down 0.12 percent from its previous close, while on NSE it closed at Rs 2,765, up 1.35 percent from its previous close .



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