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Sobha' sales realisation up 26%

BS Reporter  |  Chennai/ Bangalore 

Sobha Developers, the Bangalore-based publicly-held realty player, has said its sales realisation has gone up 26 per cent on a year-on-year basis while the sales volumes have gone up 25 per cent. On a sequential basis, the realisation is up 7 per cent while the sales being marginally down.

Announcing details of its performance for the first quarter of FY12, Sobha Developers said that for the first quarter of FY13, they sold 0.84 million square feet of new space valued at Rs 479 crore at an average price realisation of Rs 5,737 per square foot. The company went on to add that despite the uncertain macro-economic situation, they hope to touch sales of Rs 2,000 crore for FY13.

“The macroeconomic scenario of our economy remains uncertain due to the deteriorating growth-inflation dynamics. The consistent inflationary pressures and the impact of depreciation of the Rupee are slowing India’s growth momentum,” the company’s management said in a statement.

The realty sector, which is an important element of the economy, is also facing many challenges including global economic uncertainty and low customer confidence. The developers are under pressure due to high input costs and are striving hard to maintain healthy balance sheets.

On the monetary policy front, RBI has paused yet another time, leaving the repo rate unchanged. While urbanisation, which fosters the demand for real estate, is inevitable, the present economic conditions pose a challenge for the sector, the management of Sobha Developers added.

First Published: Mon, July 09 2012. 00:58 IST