Overall real estate sales are down 25 percent in CY20, said MR Jaishankar, CMD of Brigade Enterprises. Jaishankar, however, also said that the recovery is fast and he believes that the worst is behind for the sector.
“For our own company, we have fully recovered. In fact, we have exceeded whatever sales we did in Q3 of 2020 and also Q2 of FY21. So, the sales, in general, have been robust. However, on an overall basis, across India, there is about a 25 percent drop in sales as compared to the previous financial year. But I must say the recovery is quite fast and I would say the worst is over for real estate in my opinion,” he told CNBC-TV18.
Jaishankar expects a 4-5 percent increase in home prices due to steel price hikes.
“There are a few dampeners like 50 percent jump in steel price and few metal prices which are required in real estate – aluminum, copper, and also the petroleum prices which has an impact on PVC products. All this has some dampener effect on the cost.”
The demand for rentals is down 40 percent compared to last year, but Jaishankar said that enquiries have gone up substantially in the past 4-6 weeks.
“If you see the last 9 months, the demand has certainly come down by maybe about 40 percent as compared to the previous calendar year which is what rentals are generally being assessed on calendar year basis by international property consultants. But now with US elections behind us and with the finance minister promising a fantastic budget – also enquiries have gone up substantially in the last 4-6 weeks and with the IT sector continuing to do very well, the outlook for office in 2021 and 2022 should be bright,” he said.Watch the video for more