Page 34 - CO October 2021

TICKEr TAPE
conStrUction Majority of prospective homebuyers are looking to purchase estate sector, there is still a great deal of uncertainty around ‘what
OVEr 80% OF PrOSPECTIVE HOMEbUYErS LIKELY TO
bUY PrOPErTY IN 3 MONTHS, SAYS SUrVEY
permanent changes we are likely to witness.
Cities like Bengaluru, Chennai, Hyderabad as well as the Delhi
nCR market are the prominent cities where the demand for 3BHK
a property in the next three months with self-use as a primary
reason while investor interest has started to increase in certain
apartments has increased. Layouts of apartments, presence of
balconies and an additional small room for work and online
markets, shows a JLL-Roof and Floor survey.
classes are in focus. This trend is more prominent in the cities of
Around 80% of over 2,500 surveyed prospective homebuyers
across the top six cities of Mumbai MMR, Delhi nCR, Bengaluru,
sought-after configurations.
Hyderabad, Chennai and Pune have indicated their interest in
buying a house in the next one quarter. Mumbai and Pune where 1BHK and 2BHK are usually the most
Post ‘unlock 1.0’ of 2020, the uptick in residential sales was
According to the survey, nearly 80% of the prospective primarily driven by pent-up demand and the presence of
homebuyers indicated a preference for properties in the sub-Rs ‘affordable synergy’ in the market. However, sustained recovery
75 lakh category. This hasn’t changed much over the course of in the next few quarters and the resilience shown during the
the pandemic, while the size of the apartment has assumed second Covid19 wave are indicative of a fundamental shift in the
greater significance and there is a clear preference for larger, sentiment towards home ownership. Residential real estate is an
more spacious homes. The buyers are today showing a greater enabler of our existence and contrary to popular belief, recovery
willingness to relocate to suburban or peripheral markets to get in the residential sector was quick and more resilient. The recovery
larger homes while keeping the budget intact. process, which started in the third quarter of 2020, was derailed
With more than 80% of the prospective homebuyers expected to in the second quarter of 2021 because of the second Covid19
make a purchase in the next three months, the residential market wave. With most of the prospective homebuyers expected to
is expected to get back on the recovery path and 2021 is likely make a purchase in the next 3 months, the residential market is
to end on an optimistic note. Developers are launching optimal expected to get back on the recovery path and 2021 is likely to
sized houses to capture the changing preferences of consumers end on an optimistic note. new launches are expected to go up
in the post-COVID era. While some of these changes will be in the second half of 2021 as developers launch new projects to
fleeting in nature, others will be permanent. In the residential real monetize their land banks.

rEALTY DEVELOPErS LIKELY TO POST rECOrD SHAKTI PUMPS EYES `2,000 Cr TOPLINE IN FY22 ON
bOOKINGS IN OCTObEr-DECEMbEr LED bY LAUNCHES SIGNIFICANT DEMAND rEVIVAl
Real estate developers are likely to post record sales booking Solar water pump maker Shakti Pumps expects to more than
numbers in the second half of the financial year 2021-22 led double the topline to `2,000 crore this fiscal on the back of
by new launches as the momentum of robust response from more adoption of its products by farmers which is being driven
homebuyers witnessed so far is expected to be continued by the heavy central and state subsidies that run up to 90 per
during the festive October-December quarter. The beginning cent. The company closed FY21 with a topline of `930 crore,
of the festive season, the waning of the second Covid wave, which was nearly three times its previous year revenue. Of the
record low mortgage rates, strong hiring and salary growth in past year revenue, `560 crore came in from solar engineering,
the information technology, IT-enabled services sector has led procurement and construction (EPC) business (setting up the
to developers preponing many launches to August-September. full unit) and `180 crore from exports. Shakti Pumps, which has
These launches have received good response from homebuyers. manufactured the country’s first BEE 5 star-rated pumps and
Godrej Properties announced selling `575 crore worth of housing is also the first domestic company to produce 100 per cent
inventory at phase 2 of its noida project on the day of launch. stainless steel pumps and energy efficient motors, was founded
Prestige Estates was able to sell over 800 plots spread over 1.7 in 1982 in Pithampur, near Indore.
million sq ft worth `850 crore at its Bangalore project earlier this At present, its products reach as much 125 world markets. The
month. company has filed for 20 patents since it pioneered the solar
ICICI Securities expects this momentum to be carried forward water pumps in 2010. Other key players in the solar water pump
from October onwards during the festive season and sees market include Alpex Solar, Bright Solar, Claro Energy, Conergy
developers to post record sales booking numbers in the second Energy, Tata Power Solar Systems, Lorentz, Greenmax Technology,
half of the financial year. and udhaya Semiconductors and so on.
While prices have remained stagnant over the last 5 years, ICICI Shakti Pumps has two plants in Pitampur with a cumulative
Securities believes that prices may see a single digit rise over the production capacity (solar and motorised) of 5 lakh units per
next 2-3 years annually as inventory levels have stabilised and annum in two shifts and 3.5 lakh units in single shift. Its special
the Indian residential real estate market has undergone clear economic zone (SEZ) unit near-by can produce 1.5 lakh units
signs of consolidation with the market share of larger, organised per annum. Shakti Pumps has installed over 1 lakh solar pumps
developers having grown to over 24% in FY21 of tier 1 residential out of (1.2 lakh installed) since it entered the segment in 2010
sales value against nearly 11% in FY17. With an increase in input and in FY21 it had installed 20,000 units under the EPC model
costs of 5-10% over the last 12 months, it believes there is a case (setting up the solar water pump unit along with the solar power
for a price increase and we have already seen marginal price panel units) and 15,000 units were sold to others who install such
hikes of 2-5% by developers during April-June. pumps across.

34 COnSTRuCTIOn OPPORTunITIES|OCTObEr 2021