Sobha Developers' Q3 sales bookings fall by 6 pc to Rs 502 crore
Jan 05, 2014
Source : Real Estate Market, Delhi NCR Real Estate, Real Estate Developer in Delhi NCR


DELHI: Realty firm Sobha Developers' sales bookings fell by 6 per cent in the third quarter ended December 2013 to Rs 502.3 crore due to lower sales volumes because of a slowdown in the real estate market.

The Bangalore-based company had achieved sales bookings of Rs 533.4 crore in the year-ago period.

"The company, during the quarter ended December 31, 2013, has sold 0.74 million sq ft of new space valued at Rs 5.02 billion at an average price realisation of Rs 6,786 per sq ft," Sobha said in an operational update for the third quarter of financial year 2013-14.

In terms of volume, the sales bookings declined by 18 per cent to 0.74 million sq ft during October-December quarter as against 0.9 million sq ft in the corresponding period of the previous fiscal.

The average sales realisation, however, was higher at Rs 6,786 per sq ft as against Rs 5,910 per sq ft during the period under review.

During April-December period of this fiscal, sales bookings have risen by 13 per cent to Rs 1,737.4 crore from Rs 1,540.3 crore in the year-ago period despite lower volumes.

Sobha's sales bookings fell to 2.66 million sq ft in the first nine months of this fiscal from 2.68 million sq ft in the corresponding period of previous fiscal.

"There is a marginal decline in the area sold during April-December 2014 as compared to the corresponding period of 2013 on account of weak sentiments prevailing in the NCR market coupled with the economy related factors," Sobha said.

In the beginning of this fiscal, Sobha had given a guidance of new sales area of 4.2 million sq ft valued at Rs 2,600 crore for the current financial year.

"At the close of three quarters of FY'14, the company has registered new sales area of 2.66 million sq ft at Rs 1,737 crore. While the company is able to maintain better sales realisations and generate consistent operational cash flows, it remains cautious about achieving its guidance set for the current fiscal," Sobha said.

During the full financial year 2012-13, Sobha had sold 3.75 million sq ft area for Rs 2,214.5 crore.

Apart from Bangalore and National Capital Region, Sobha has projects in Chennai, Pune, Thrissur, Coimbatore, Kozhikode and Mysore.

"We remain upbeat about our south Indian markets despite a lower sales volume during the quarter. We also anticipate an uptick in the sales momentum in the coming quarters due to proposed new launches across our existing markets," it added.



Latest Realty News

Subrata Roy moves SC for permission to go abroad
Jan 04, 2014
DELHI: Sahara Group chief Subrata Roy, who has been restrained from going abroad for failing to refund Rs. 20,000 crore investors' money, today moved the Supreme Court seeking its permission to go overseas for business purposes.
Investments in realty sector grow 53% in Jan-Sep 2013
Jan 04, 2014
DELHI: Investments in the real estate sector grew by 53% in the first three quarters of calendar 2013 with an infusion of $1,885 million against $1,235 million during the same period in the previous year.
Rented accommodation – a ray of hope in unaffordable scenario
Jan 04, 2014
DELHI: Affordability is the need of the hour. However, with an increase in the cost of material and high land prices, many developers have already voiced their concern over offering affordable homes. Thus, going ahead, the real estate scenario may best be described in one word – ‘unaffordable’. This is applicable for commercial as well as residential properties. This scenario is giving a push to rental markets in the country and opening up broad vistas for people who cannot afford to buy their o
CCI rules out abuse of dominant position by two realty firms, SG Estates Ltd and SKI View Hotel
Jan 04, 2014
DELHI: Fair trade regulator CCI has dismissed the allegations of abuse of dominant position against two realty companies -- SG Estates Ltd and SKI View Hotel -- with respect to development of a commercial real estate project in Vasundhara in Ghaziabad region.
Lenders bank on home loan portfolio, cut interest rates
Jan 03, 2014
DELHI: With competition in the home loan space getting intense, banks are looking to spruce up their products by either cutting rates or allowing customers to borrow larger amounts at the same rate, reports Shashidhar Jayakumar in Mumbai. M Narendra, CMD, Indian Overseas Bank, told FE his bank was toying with the idea of giving home loans at 10.25% for a value of up to Rs 75 lakh, way more than the current R30 lakh that it allows.
Four years on, DDA announces housing scheme 2014
Jan 03, 2014
DELHI: Announcing the launch of a new housing scheme in 2014, Delhi Development Authority (DDA) said its scheme would cover all segments of society and would provide accommodation ranging from one-room tenements to three-bedroom flats. The flats will be made available in different parts of the city, DDA officials said.
Land Bill may push up prices 15-45%, say realty players
Jan 03, 2014
DELHI: Amid concerns over cost escalation and execution delays, the Land Acquisition Act has come into force from January 1, 2014. Real estate players say that for large infrastructure and residential projects, cost escalation due to the Act may range between 15 per cent and 45 per cent.
Demand for commercial property still good in Delhi
Jan 03, 2014
DELHI: Despite odds, the Delhi NCR’s commercial realty market is still considered as one of the most favourable investment destinations. This owes a lot to the political heft that Delhi commands—being the national capital, the city houses the headquarters of major political parties, as well as all administrative offices. Naturally, this attracts corporates wanting to be in close proximity to the bureaucrats and other decision makers.
Developers optimistic of revival in realty sector in 2014
Jan 03, 2014
DELHI: With high property prices and costlier borrowing hitting real estate, developers are hoping for a reversal of the slowdown in the new year and sales picking up post general elections.
Real estate boom takes toll on groundwater
Jan 03, 2014
DELHI: Noida and Greater Noida fall in the water-rich doab — lying between two confluent rivers — area. It has Yamuna’s catchment on the one side and Hindon on the other. Yet, mindless extraction of groundwater for massive construction has caused irreparable damage to the water table in New Delhi.

Latest Realty News Of State

Realty Talk's