Realtor sells 975 flats worth Rs 1000 crore in three months; Housing back in demand?

Last Updated: Thu, Aug 23, 2018 19:09 hrs
Real Estate

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Housing and property demand seems to be inching back to the glory of pre-demonetisation days.

Ever since Rs 500 and Rs 1000 notes were recalled, most realtors had been blaming the damp buyer sentiment to the demonetisation and the twin policies- the arrival of RERA and the onslaught of GST for a tepid growth.

CREDAI, a Realtors' body and property consultant JLL India, in their joint report, found housing sales in India's top seven cities as rising post demonetisation, by 25 percent in the first six months of 2018.

Studies by Knight Frank, another agency, says sales growth was marginal at 3% in the same period.

A recent news report stands as an example, suggesting that the consumption trend may have revived.

A New Delhi based realty firm ATS group has been reported as saying that it sold some 975 flats, estimated at nearly Rs 1,000 crores in the last three months.

The story reported by PTI says that the company saw an improvement in housing demand.

Figures from ATS Group also includes sales of Homekraft, a joint venture the firm entered into with HDFC Capital.

ATS group launched a three-month campaign starting mid-May where it put on sale flats across 15 under-construction projects in Noida, Greater Noida, Gurugram, Mohali and Chandigarh.

"There is an improvement in market sentiments leading to rise in housing demand. We sold 975 units in this three-month campaign valuing about Rs 1,000 crore," Homekraft CEO Prasoon Chauhan was reported as saying in a PTI interaction.

Out of the total sales, he said about 650 units were of ATS brand and 325 units of Homekraft. Average sale price of ATS projects was Rs 1.25 crore, while ticket size of Homekraft was Rs 55 lakh.

Chauhan, expects the momentum to continue in the upcoming festive season.

Chauhan's company did not find the impact of GST worrisome, he said, "We are charging only 6% GST as we are passing on the input credit". There is 12 percent GST on under-construction flats and no GST on completed units.

Besides GST benefits, he explains that all apartments under the HomeKraft brand would qualify for Pradhan Mantri Awas Yojana (PMAY) schemes. Benefits under PMAY includes various concessional government schemes such as interest subvention under the credit-linked subsidy scheme (CLSS) and concessions on GST.

Earlier, Gaurs group, another major developer in the National Capital Region (NCR), had reported sales if over 5,000 properties worth Rs 2,000 crore during the last four months.

PM Narendra Modi on Thursday did the eGruhapravesh for nearly 1.15 lakh homes in Valsad. He said that he dreamt of a home for every Indian family by 2022.

Is it wise to consider that the real estate sector is witnessing consumption trends back to pre-demo days?

Share your views in the comments section.

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