Mumbai-focused real estate developer Oberoi Realty Ltd has delayed the launch of its much-awaited Thane project in Q1FY23 as the company awaits approval, showed channel check by Motilal Oswal Financial Services Ltd. The project was expected to launch in March 2022.
So, what does this mean for of developer sales forecast? Domestic brokerage house analysts agreed 600 crore sales from Thane project in 4QFY22, which will now be spread till FY23.
Motilal Oswal’s March 31 report said, “On the back of delayed launches, we reduce our FY22 pre-sales estimate by 14%, but increase it to 4%/7% for FY23/FY24.” Huh.” ,
That said, the sales momentum from the company’s ongoing projects remains intact. The registration data for Mumbai for February and March shows a month-on-month increase of 25-30% in property sales.
“Project wise registration data till early March 2022 for Oberoi indicates sales of 15-20 units across all projects except Sky City, Borivali, which reported sales of ~75 units. Further pick-up in momentum in March 2022 With this, we expect the quarterly run-rate across all projects to at least remain intact, if not go ahead,” the report added.
In addition, analysts say that with a strong (7 million sq ft) near-term launch pipeline in projects in Borivali, Goregaon and Thane and completion of Rs 10,000 crore of inventory in Mulund and Worli, the sales run-rate will increase, say analysts. Hopefully it will remain strong in the next three-four years.
Shares of Oberoi Realty have gained 7.5% so far this calendar year. In comparison, the S&P BSE Realty Index has declined 4% in the said period. Despite some disruptions by Omicron in the early months of Q4FY22, several real estate companies are expected to exit FY22 with record sales. However, going forward, the uptrend in stocks will depend on cost inflation and ability to raise prices without impacting sales momentum.
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