Realty to see mixed Q3, hectic Q4

Easing burden Strong cash flows aided by robust sales has given listed realty companies room to deleverage.

- Harsha Jethmalani

The residential realty market is in an upcycle, yet real estate companies' December quarter (Q3FY25) results would bring selective cheer. With approval-related challenges easing, sequential improvement in pre-sales or bookings is likely for most listed companies. However, a high base, coupled with muted launches, would mar year-on-year bookings growth for those largely dependent on new projects.

Seasonality and delayed approvals led to muted launches, hampering pre-sales momentum in the half-year ended September (H1). 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.

Sobha launched just one new project in Q3 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 launched one project in Q3, while Sunteck and Kolte Patil saw no launches.