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Below are Views On BSE Realty Index has crossed the milestone of 4K mark during the trading session today By Sharad Agrawal, Executive Director – Capital Markets, Knight Frank India

The top tier developers have used the pandemic period to consolidate their hold on the market through gain in market share, while the tier 2/3 players continue to face liquidity challenges, stuck projects and weaker sales and collections. The larger players have also reduced their debt over this period and have brought down their cost of borrowings as well, positioning themselves to take advantage of the post-covid rebound in demand. Developers have brought down their debt by equity raises, asset sales, stake dilution and reduction in corporate overheads.

They are now well positioned to invest in growth and gain market share. The housing cycle seems to have turned with residential demand coming back strongly in the market on the back of strong hiring by the tech companies, steady reduction in unsold inventory, record low home loan rates and government support. We are seeing a rising number of launches even before the festive season, which have been very well received by the market.

The pace of consolidation will accelerate as the economy rebounds from the pandemic. The strong will become stronger, due to their lean balance sheets, easier access to cheaper capital and the weaker developers dropping out of the market due to their numerous challenges

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