Oberoi Realty Rises to Top with Highest Sales in 2021, Data Shows
Oberoi Realty has risen to the top spot in Mumbai’s top 20 developers ranking by sales in 2021, ousting Runwal Group which was number one last year.
Lodha Group which had held the top spot three out of five times since 2017 slipped to second place in 2020 and continues to hold the same position in 2021.
The Oberoi Group ranked fifth in 2019 and fourth in 2020. This is the first time it has held the top spot.
The Runwal Group which took the top spot in 2020 fell to third place in 2021. The better known Godrej Properties fell far behind and failed to make the top 10; he was ranked in 12th place.
The rankings are based on data from a UBS report on Indian real estate which comes from PropEquity.
Oberoi Realty achieved sales of Rs 44 billion in 2021, ahead of Lodha with Rs 36 billion and the Runwal group with Rs 34 billion.
Godrej Properties had a turnover of Rs 8 billion, which was well below Shapoorji Pallonji, Hiranandani Group and Indiabulls Real Estate.
Mumbai is a key market as developers achieve higher margins in the city than perhaps any other Indian Tier 1 city or metro. UBS research shows that in 2020 Mumbai accounted for 10% of volumes , 23% of sales and 33% of EBIDTA across eight cities: Hyderabad, Pune, Bangalore, Thane and Ahmedabad, among others.
It is for this reason that new developers based in other cities are keen to enter Mumbai. According to estimates, Hyderabad and Mumbai attract the maximum number of new developers.
The percentage of new developers in Hyderabad was around 18-19% of all active developers in 2021 and 11-12% in Mumbai. In contrast, Gurugram and Noida’s figure for new players was less than 2%. Pune, however, was an outlier, with new players accounting for 11% of active developers.
Among those that first entered Mumbai in 2021 are Prestige Group, Bangalore-based Puravankara and Birla Estates. Whispers have also been heard that one of the country’s biggest real estate players, DLF, may return to Mumbai again.
Mumbai fared well with sales volumes of primary properties hitting a decade high at 38,000 units. In 2021, however, only 31,000 units have been added.
Swift regulatory approvals with over 150 million square feet of approved development rights in the city will provide opportunities for developers with strong balance sheets who want to increase their exposure in the Mumbai property market and drive sales.
Dear reader,
Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.
As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.
Support quality journalism and subscribe to Business Standard.
digital editor