50.1% of growth was seen in India for FY2018 as per reports, with regard to the sale of real estate space. Around 26.4 million sq. ft. was sold as per reports and sales values of the entire area booked also increased to Rs. 16, 916 crore for FY2018 as compared to Rs. 12, 523 crore in the financial year before that. This indicates 35.1% of growth for the period being taken into account as per studies. Homebuyers now have improved and higher demand and there is a growing preference when it comes to real estate developers/brands who have solid track records of timely delivery and project completion. More customers are steadily shifting towards well-known and larger market players as per reports.
This has led to multiple new project launches and better demand according to reports. The real estate sector has seen several gains in terms of operations and overall financial health in FY2018 as compared to FY2017. The QTS or quarter-to-sell benchmark is taken as a major indicator in this duration which shows the number of quarters needed in order to completely sell off inventory that is still available. This has witnessed an improvement to stand at 10 quarters by end-March 2018 in comparison to 14 quarters at end-March, 2017. This reflects higher sales volumes and demand from customers as per studies.
There are better buyer sentiments and rising demand along with several new launches and after RERA, market share will rise for organized and reputed real estate brands. New sales volumes have surpassed new launches for the very first time in FY2018 after the last four years saw a reverse trend of sorts. Real estate developers have already been spurring higher sales figures through multiple promotional schemes including subvention and possession linked plans. With several projects close to being collected, collections from customers should improve considerably.
Approximately 29.2 million sq. ft. of real estate space was successfully completed for FY2018 and deliveries are also expected to be steady across the country. New launches will go up in FY2018-19 based on these trends according to reports and studies. With a lower QTS and higher sales figures, new launches could surpass the 21.3 million sq. ft. launched in the previous financial year. There is also the perception that new sales booked has surpassed new launches in the previous financial year and this will lead to more project launches as per expectations. RERA and other regulatory aspects have created a bigger market for organized real estate developers who have recovered fast due to higher sales volumes and lower QTS along with several new launches.
