The data came out that project in Noida got Rs 600 crores worth of sales in one day. NCR is clogged with a lot of inventory. What is happening on ground in your view? Has the inventory got cleared up? Is it just quality developers which have seen good volume offtake?
In my opinion, a lot has changed post-COVID. I would say that lot of fundamental change has taken place. If you take into account regulatory changes in terms of RERA, GST, DeMon, I think it helped the industry to clear lot of weaker players.
In FY17 total new launches that were being done, 6% was the share of listed developers and rest of them were done by unorganised and small local developers. As of FY21, 19% of the launches were contributed by the listed developers. So there is a huge change in terms of consolidation and the market is shifting towards more organised players post-RERA.
During COVID, a lot of people realised the importance of a house and then started to think seriously towards it. There were lot of fence sitters who were waiting for interest rates to further come down, prices to correct further and there were lot of negativity around stuck projects, delayed projects. So if you notice, the government has been very heavy handed in terms of cleaning this industry.
If you look to the recent ruling that came in the Noida market, it has helped buyers to come to this market and look at this sector with a new lens where transparency is being taken care of and the market is now being led by great A listed developers. All the listed developers are doing quite well.
The launches that happened post the second unlocking, most of them are done by grade A renowned developers with a strong focus on institution. I think that is the reason where the buyer trust is coming back and the financial institutions are also doing their bit. We are seeing the historical low level of home loan rates and that is where things are picking up and this upcoming festive season is also bringing in lot of positivity and that is where we see this momentum picking up.