The real estate sector is on the cusp of significant growth, despite encountering a dip in presales during the fourth quarter of the fiscal year 2023-24 (Q4 FY24). Leading real estate companies are gearing up to report a notable revenue surge, driven by sustained demand and the timely completion of projects.
Steady Revenue Growth Expected
According to industry insights from prominent financial services firm Motilal Oswal, leading real estate companies are projected to witness a robust revenue growth ranging between 9% to 19.2% in Q4 FY24. This growth trajectory is underpinned by the unwavering demand for properties and efficient project execution.
Presales Projections: A Moderation in Momentum
Despite the optimistic revenue outlook, presales in Q4 FY24 are expected to witness a moderation in momentum. Motilal Oswal’s analysis suggests that presales may decline by 11% quarter-on-quarter, primarily due to a lack of new launches. However, year-on-year figures are anticipated to show a modest increase of 4%.
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Surpassing Expectations: FY24 Bookings Performance
Cumulative bookings for the fiscal year 2023-24 are set to surpass initial expectations, reaching an impressive Rs 90,700 crore. This figure marks a substantial 33% year-on-year increase, signaling resilience and adaptability within the real estate sector.
Insights into Company-specific Performances
Godrej Properties, Mahindra Lifespaces, and Prestige Estates are among the frontrunners expected to showcase strong year-on-year growth in bookings. Godrej Properties, in particular, is poised to report robust presales figures, fueled by a series of successful launches across key metropolitan regions.
Market Analysis and Outlook
Operational updates from market players such as Macrotech and Puravankara indicate a sustained momentum in presales bookings, despite the overall industry trend. Market analysts at Sharekhan highlight varying growth prospects for different companies, with keen interest in management commentaries on future projects and developments.
Industry Trends and Projections
Residential sales in FY24 soared to a decade-high, witnessing nearly 500,000 units sold, according to data from real estate consultancy firm Anarock. Despite this surge in sales, available inventory in the top seven cities experienced a 7% annual drop, indicating a potential supply-demand imbalance.
Anarock’s insights further shed light on the proactive land acquisition strategies adopted by listed developers like Prestige Estates, DLF, and Godrej Properties. These strategies, coupled with strong balance sheets, position these developers for continued success in the evolving real estate landscape.
In conclusion, while Q4 FY24 may witness a temporary dip in presales momentum, the overall outlook for the real estate sector remains optimistic. With robust revenue growth projections, innovative strategies, and sustained demand, the sector is poised to navigate challenges and emerge stronger in the quarters ahead.
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