InvestorQ : Is it true that residential home sales have picked up in this quarter and what does that tell about realty stocks like DLF and Sobha?
Neelam Naik made post

Is it true that residential home sales have picked up in this quarter and what does that tell about realty stocks like DLF and Sobha?

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Anu Biswas answered.
4 months ago
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According to the latest data coming out from the realty sector, the residential home sales across major cities in India have rallied by 56% in the June quarter. It touched a level of 75 million SFT in the Jun-21 quarter. While this growth is on a yoy basis on a low base, the sales are substantially lower than the 179 million SFT that real estate companies in the Mar-21 quarter. This was largely on account of the COVID 2.0 impact, hitting home sales badly.

Kotak Research has pointed this out in its recent study on the realty market in India. In fact, its findings are that sales were robust in Mumbai, Bengaluru, Hyderabad, Pune and Chennai, while NCR Delhi region saw weak growth. Total outstanding inventory across India has reduced by 12% at 1.2 billion SFT. However, this inventory is still equivalent to a massive 2.3 years of total sales, indicating a huge backlog even now.

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