Top 7 real estate players bet big on Tier I, Tier III cities post pandemic  |  Photo Credit: BCCL
- Top 7 listed players collectively sold 32.61 million sq ft of residential space in FY 2021, up by 7% over FY 2020
- 70-75% of new supply in residential market may be launched in tier 1,2 cities in FY 2022 by these top 7 listed developers
- New launches by these top 7 developers rose by 11% against the previous fiscal
Homebuyers across top tier cities continue to prefer listed developers while buying a residential property. Top real estate developers are now turning their focus on tier 2 and tier 3 cities.
For instance, Bengaluru-based Puravankara Ltd and Sobha Ltd will expand into Kochi, Coimbatore, GIFT City, Hosur, Thrissur and Thiruvananthapuram. Southern India is a major focus area for these listed players.
According to ANAROCK Property Consultants, the top seven listed realty companies are in the process to launch approximately 92.5 million sq ft of new residential space within the next 1-2 years. These are Brigade Enterprises, Godrej Properties, Kolte-Patil, Mahindra Lifespace Developers, Prestige Estates, Puravankara Ltd and Sobha Ltd.
Apart from the top seven cities, these players have also turned their gaze on major tiers 2 and 3 cities and at least 70-75% of this supply may be launched in FY 2022 itself, according to ANAROCK.
Despite COVID-19 in FY2021, new launches by these top seven players rose by 11% against the previous fiscal – from 28.3 million sq ft in FY 2020 to 31.37 million sq ft in FY2021, it added.
The strong pipeline of new launches of 92.5 million sq ft indicates that large listed players will continue to dominate the new residential supply.
“COVID-19 has driven a lot of latent demand into tier 2 and 3 cities. This demand is driven by the improved economic growth, infrastructural developments, lower cost of living and more attractive real estate prices in these cities. However, it is the new work from home dynamic which has worked most strongly in their favour as they continue to attract migrant professionals riding on the WFH option,” said Anuj Puri, Chairman, ANAROCK Property Consultants.
Demand for projects by leading developers is robust so prospects of their expansion into tier 2 and tier 3 cities seem strong at the expense of local players which once dominated the for residential units in these markets.
“These players have extremely ambitious expansion plans for the next two years,” says Puri.
“Even if 70% of their total projected new supply of approximately 92.5 million sq ft is launched in FY 2022, they will have doubled their footprint as against the preceding the financial year 2021, when they launched approx. 31.37 Mn sq. ft. residential space,” he further added.
As per data analysed by ANAROCK, these seven listed players cumulatively sold approximately 32.61 million sq ft of housing in FY 2021, an increase of 7% over FY2020, when approximately 30.45 million sq. ft. area was sold.