The focus is now on land purchases as real estate developers are picking up the pace with new projects as major companies have high sales goals for themselves beginning this year.
According to JLL India report, approximately 100 land transactions encompassing a region with a 209 million square foot development potential occurred between January 2022 and May 2023.
About 84% of this was allocated to residential developments, which had a 165 million square feet development potential and a 1.2 lakh crore sales potential. The data showed that the first five months of 2023 saw the transaction of more than one-fourth of the land deals.
Launches are anticipated to increase 22% year over year in Financial Year 2024 for the top six listed firms in the industry. Companies including Brigade Enterprises, Sobha Limited, Godrej Properties, and Prestige Estates started fewer projects than they had anticipated during the previous fiscal year.
Sales growth for Financial Year 2024 is expected to average between 10 and 20% over last year, with new launches accounting for the majority of that growth. In a note on the market, IIFL Securities stated that “collections and cash flows are expected to remain healthy” and that “developers are increasing investments in business development to support future demand
Major Land Acquisitions
According to JLL India, more than half of the land deals have taken place in the Delhi-NCR and Mumbai Metropolitan Region, with the majority of them being for residential use.
According to information obtained from stock exchange filings and Nuvama Institutional Equities, Godrej Properties, Oberoi Realty, Birla Estates, and Mahindra Lifespaces were among the top land purchasers from April 2022 onward.
DLF, based in Gurugram, has a sizable land bank of more than 10,000 acres dispersed across multiple cities, and the management estimates that this will be enough to sustain it for roughly a decade.
According to Nagaraju Routhu, CEO of Experion Developers, the majority of land purchases in the Delhi-NCR region are made in Noida and Gurugram.
New Launch Pipeline
DLF is now aiming for 11 million square feet of launches in Financial Year 2024 with a sales potential of $19,700 crore after releasing 10 million square feet of projects with a revenue potential of $14,600 crore in Financial Year 2023.
Godrej Properties has aimed for a 15% increase in pre-sales in terms of volumes in order to launch 19.9 million square feet in Financial Year 2024. Sobha Limited, situated in Bengaluru, intends to open 7-8 million square feet in Financial Year 2024 and anticipates pre-sales growth of 15-20% as well.
Souce- The Hindu
