Karda Constructions Reports 23% Y-O-Y Growth In New Bookings Q3
The renowned real estate developer Karda Constructions Limited has reported a strong growth momentum in new bookings (pre-sales) in the third quarter of the current financial year (Q3 FY20-21), indicating a turnaround in India’s housing sector.
The company reported a healthy 22.34% year-on-year (y-o-y) growth and 17.35% quarter-on-quarter (QoQ) growth in new bookings (pre-sales) in Q3 FY20-21, supported by its strong inventory build-up in ready-to-move-in and nearing-ready properties with the resumption of construction activities post-lockdown.
Commenting on the company’s performance, Naresh Karda, Chairman & Managing Director, Karda Constructions Ltd., said, “The pandemic has been an opportunity in disguise for the housing sector and Karda Constructions Ltd. The lockdown created a lot of negativity but people also realised the need and the impending security in owning one’s own home. There was also an increase in demand for bigger homes due to the shift to the work-from-home (WFH) culture, which demanded people create separate office spaces in their homes. Since more people are exploring new business opportunities with uncertainty in jobs, this trend also augers well for us as our new launches in the pipeline have a substantial share of commercial space. We expect the current traction in demand to continue as the recent bump in the demand has depleted excess supply in real estate.”
The visible strong rebound in customer sentiment is due to various timely interventions by Karda Constructions to facilitate inquiries and bookings through the online medium even during the lock-down period. Karda Constructions had launched its e-booking platform much early, which made it convenient for its customers to continue closing deals easily. Backed by the e-booking platform, Karda Constructions closed 43 deals in the first quarter, which jumped to 98 in the second quarter, a growth of 127.91%. In the third quarter, 115 deals were closed.
The share of e-booking has also been steadily increasing and it touched around 20% of its total sales in December 2020. Further, during the third quarter, the company had organised a 10-day exhibition for displaying various investment opportunities in real estate. The event was primarily focused on attracting customers with an interest in commercial real estate. This event proved to be a resounding success as the company closed more than 40 deals and witnessed a strong increase in inquires, which are expected to be converted into sales in the future.
The growth in demand was also due to favourable factors such as reduced stamp duty and historically-low interest rates for home loans. Investors have made a comeback as attractive discounts and offers are also in galore. Sales are primarily driven by the affordable housing segment.
“The availability of inventories across our brand and pricing spectrum creates flexibility to offer projects based on the specific needs of various customer segments, which would generate substantial cash flow for the company. Karda Constructions will also benefit from homebuyers’ preference for credible projects by reputed real estate developers, as the pedigree of a trusted brand drives the preference for new home buyers,” Karda adds.