Sobha Ltd, a leading real estate firm, reported a 32 per cent decline in sale bookings for the July-September quarter, totalling INR 1,178.5 crore, compared to INR 1,723.8 crore in the same period last year. The company sold 929,907 square feet of property, down from 1,686,196 square feet a year ago. In the first half of the fiscal year, sales amounted to INR 3,052.2 crore, slightly lower than the INR 3,188.5 crore recorded last year. Despite robust housing demand, Sobha's sales volume has declined, though it remains a significant player with projects across south India, Delhi-NCR, Pune, and Gujarat.
Real estate company Sobha Ltd has reported a 32 per cent drop in its sale bookings for the July-September quarter, despite robust demand in the housing sector. According to a regulatory filing made on Monday, Sobha Ltd, based in Bengaluru, revealed that its sale bookings amounted to INR 1,178.5 crore during the second quarter of the current fiscal year. This marks a decrease compared to the INR 1,723.8 crore recorded in the same period of the previous year.
The company stated that in Q2-FY25, it sold a new area of 0.93 million square feet with a sales value of INR 11.79 billion, at an average price realisation of INR 12,674 per square foot. Despite the strong demand in the market, Sobha Ltd saw a notable decline in both the value and volume of its sales. In terms of volume, Sobha Ltd's sale bookings fell to 929,907 square feet during the July-September 2024 period, compared to 1,686,196 square feet in the corresponding quarter of the previous year. This decline in the total area sold has been a significant factor in the drop in overall sales bookings.
For the first half of the current fiscal year, Sobha Ltd sold properties worth INR 3,052.2 crore, down slightly from INR 3,188.5 crore in the same period the year before. The company sold a total of 2,105,268 square feet in the April-September period of this fiscal year, compared to 3,080,313 square feet in the corresponding period of the previous fiscal year, indicating a substantial decline in volume. In the full fiscal year 2023-24, Sobha Ltd had sold properties with a total value of INR 6,644.1 crore. However, the recent figures reflect a downward trend for the company, both in terms of sales value and the total area sold.
Sobha Ltd is a prominent player in the Indian real estate market, with a strong presence in the southern part of the country. In addition to its operations in Bengaluru, it also has significant projects in other key regions, including Delhi-NCR, Pune, and Gujarat. The company continues to be a major name in the real estate industry, though it has faced challenges in maintaining its sales momentum in recent months. The reduction in sales figures comes at a time when housing demand remains strong, signalling that other factors may be contributing to the company's recent performance. Despite these setbacks, Sobha Ltd remains committed to its projects and aims to regain its market position.
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