‘Property prices rising across India’: Puravankara pegs 8-9% growth annually
The Bengaluru-based real estate firm, Puravankara, holds the view that the Indian real estate market can anticipate an annual price appreciation ranging between 8to 9%. During a conversation with CNBC-TV18, Abhishek Kapoor, Group CEO & Director of Puravankara articulated the dynamics of real estate projects, highlighting the inherent price evolution throughout their lifecycles.
Abhishek Kapoor, Group CEO and Director of Bengaluru-based real estate firm, Puravankara, expects an annual appreciation of 8 to 9% in property prices.
"What may happen is that if I was looking at a new launch, today the price is x, and then a new launch tomorrow price may not be significantly higher, maybe 3%- 4% higher. But I personally believe that anywhere between 8 to 9% price appreciation definitely you can count on as far as the market is concerned annually,” Kapoor said In an interview with CNBC-TV18,
Kapoor also talked about the surging land prices. “Land prices have definitely gone up across India. And I think that's a challenge because you are replacing the inventory. Therefore, again, there will be some amount of upward pressure on the pricing because of the land costs itself, and approval costs," he said.
Shares of Puravankara closed nearly 10% higher at Rs 135.8 after the company reported a two-fold jump in Q2 sales at Rs 1,600 crore from Rs 791 crore the previous year.
The company's sales bookings surged close to 89% to 2.01 million square feet in the second quarter from 1.07 million last year, the company said in a regulatory filing.
The average realisations improved 7% to Rs 7,947 per square feet for the second quarter from Rs 7,396 a year ago.
"The second half is better than the first half as the real estate industry is seeing a consolidation phase. The organised players will continue to gain market share, while current growth momentum will continue due to new launches," Kapoor said.
(Edited by : Shweta Mungre)
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