Just as the top real estate firms were recovering from their downshift, demonetization hit their roof thus making it difficult for them to meet their sales guidance for this year.
October 2016 was beginning to look a little hopeful for realty firms for the sales of properties after almost three year. But this could not be enjoyed by them for a long time because November 8 saw the withdrawal of high value currency notes from the market. As many deals as possible are being closed in the March quarter.
Prestige Estates Projects Limited (PEPL), which is based in Bangalore, was able to make only 52% of the sales they had targeted for the entire financial year. The numerical estimation of sales in this year was Rs. 3,500 crores.
It is said that the guidance of annual sales will be downwardly modified. The target seems doubtful to be achieved inspite of a little increase in the property sales in the month of January.
Following demonetization, almost all the developers are calling the period of November-December as fragmented which weakened the sales of the property leading to a postponing of buying decisions.
Banning of high value currency notes has collapsed the industry which will take a few months to recover. Developers are expecting a better condition by the end of March.
Going by the market value, DLF Ltd. happens to be India’s biggest developer. It saw a huge drop in the sales from April – December 2015 (2015 crores) to April – December 2016 (760 crores).
As far as disturbances in real estate market can be witnessed, it seems there is still a long way for the property sales to elevate – say sources.