Despite the negative impact of Real Estate Regulatory Authority (RERA) act and Goods and Services (GST) Act the real estate business has mushroomed. Top ten real estate firm witnessed a growth rate of 50.7% during the April-December period in last year. The above findings are of a rating agency Icra which analysed the record of ten listed real estate entities.
During the first nine months of fiscal 2019, the sales of ten large listed entities in its sample set, stood at a robust 22.4 million sqft, registering a 50.7% compared to growth over the corresponding period in fiscal 2018, ratings agency Icra reported.
“The ongoing process of consolidation within the residential real estate segment post the implementation of structural reforms such as RERA and GST remains strong, with considerable market traction being witnessed by large organized players in recent quarters,” Icra’s assistant vice president Mahi Agarwal said.
Similarly, the sales value of the area booked also surged in the same period reaching to ₹14,461 crore compared to ₹10,980 in the corresponding period of the previous year.
He also said that the same sentiment in the real estate business continued despite the low financing by NBFC in the quarter third of FY19 and continued that the positive results can be due to the fact that low financing has hit the small real estate firms more as compared to better placed large real estate entities.
“Tilting home buyer sentiment towards larger players on the back of increased transparency, proven track record of timely execution and developer’s focus on right-sizing and right-pricing of inventory have been the key drivers of this positive trend,” he commented on the positive sentiment.