Bengaluru: India’s largest property firms will report better earnings within the quarter ended 30 June than the usual year earlier, but trail their performance within the three months ended 31st march, according to analysts.
After a spurt of launches within the December and March quarters, developers will probably report slower pre-sales momentum within the quarter ended June, with couple of launches, as property developers in Mumbai and Chennai continued to hold back for approvals under new rules. Only a few developers, for example Godrej Properties Ltd in Mumbai as well as Sobha Developers Ltd in Bengaluru, released new projects.
Demand continued to stay tepid, with even Bengaluru, which has been the most resilient housing market so far, beginning to show signs from the gloom that pervades other marketplaces. Analysts fear that this weakness could continue with the September quarter, seasonally considered a weak period for property.
Still, it wasn’t all bad within the June quarter, although the great news is unlikely to be reflected within the quarterly numbers.
For instance, some developers within the national capital region (Delhi and it is environs) started launching projects in order to push pre-sales and generate money flows, after almost a 12 months of playing wait-and-watch.Mumbai also saw activity in what is a moribund market as realty firms flooded the marketplace with discounts and easy repayment schemes.