The demand for luxury homes has been expanding in Delhi NCR. So, that the residences price more over Rs 3 crore make up about 35% of for the Sobha portfolio.
Increase in our profit as a result of the mix change from the mid-luxury to a slightly high-end luxury market. As a result, for the first time this quarter, we exceeded the Rs 10,000 average price realisation threshold.
The business had early noticed a trend toward larger home sales and could have altered the balance. We were aided by that. Second, mansions with ticket sizes over Rs 3 crore made about 37% of our sales during this quarter. That was less than 5% around two years ago.
In the top 7 cities across various price ranges, luxury properties have had the largest average price appreciation of 24 percent in the last five years, according to a recent Anarock research.
The average price of a luxury property in the top 7 cities in 2018 was almost Rs 12,400 per square foot, but by 2023, it had risen to roughly Rs 15,350 per square foot.
Sobha announced that its consolidated net profit for the first quarter of this fiscal year increased by more than twofold to Rs 12.05 crore. In the previous financial year, it had a net profit of more than 4.54 crore. According to Jagadish Nangineni, the business is on track to meet its pre-sales estimate by 15-20%.
Our revenues have improved for eight consecutive quarters. And in the previous year, we completed 5.65 million square feet. We want to make it better this year. And we want to be a reliable performer with a balance between growth and profitability,” he added.
For these numbers, the corporation is increasing its pipeline inventory. I believe it’s a little early to estimate when those might occur from a chronological viewpoint, but I am confident we will get there. I am thinking about the next four to five years, Nangineni stated.
Another CBRE analysis, published in May of this year, revealed that there was a significant demand for larger apartments with greater amenities, which resulted in a 2.5-fold increase in sales of luxury residential properties, each priced at Rs. 4 crores and above, between January and March of this year across 7 cities.