Realty companies' Q3 to be mixed, followed by an action-packed Q4
Subscribe to enjoy similar stories. The residential realty market is in an upcycle, yet real estate companies' December quarter (Q3FY25) results would bring selective cheer. With approval-related challenges slowly receding, sequential improvement in pre-sales or bookings is likely for most listed companies in Q3FY25.
However, a high base coupled with muted launches would mar year-on-year bookings growth for those largely dependent on new projects. Recall that seasonality and delayed approvals led to muted launches, hampering the sector’s pre-sales momentum in the half-year ending September (H1FY25). Grade A developers, particularly those with exposure to Bengaluru, such as Sobha Ltd, Prestige Estates Projects Ltd, and Brigade Enterprises Ltd, saw delays in regulatory approvals, leading to deferment of new launches.
Sobha launched just one new project in Q3FY25 of 1.1 million square feet in Bengaluru. Its pre-sales fell 29% on-year to ₹1,388 crore but rose sequentially, showed its Q3 operational update. Prestige and Sunteck Realty Ltd are expected to see a lukewarm quarter.
Prestige launched one project in Q3, while Sunteck and Kolte Patil saw no launches. On the other hand, those with the availability of inventory for sustained sales, such as Godrej Properties Ltd, DLF Ltd, Oberoi Realty Ltd, and Brigade Enterprises Ltd, would post a good show. Plus, these companies saw new project launches.
In its Q3 update, Macrotech Developers Ltd (Lodha) said it clocked pre-sales of ₹451 crore, up 32% on-year and 5% sequentially—its best-ever quarterly bookings. Lodha has a large number of ongoing projects, which has aided its pre-sales trajectory, although it didn't launch a new project in Q3. So, while Q3 may not be a very exciting
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