Kolte-Patil Developers Sees 13% Drop in Q2 Sales Bookings

Kolte-Patil Developers Ltd has reported a 13 percent decline in sales bookings, totaling Rs 670 crore for the second quarter of the fiscal year. This drop reflects a downturn in sales volume amid a general slowdown in the Indian residential market. In the same period last year, the company recorded pre-sales of Rs 770 crore.

Sales Volume Declines Amid Market Challenges

The Pune-based real estate firm noted a significant decrease in sales volumes, which fell 17 percent to 0.86 million square feet during the July-September period compared to 1.03 million square feet in the corresponding quarter of the previous year. For the first half of the fiscal year, sales bookings also experienced a 13 percent decline, down to Rs 1,286 crore from Rs 1,481 crore during the same timeframe last year. In terms of volume, sales bookings decreased by 15 percent to 1.70 million square feet from 1.99 million square feet.

Industry analysts have pointed to various factors contributing to this decline in housing sales across the top seven to eight major cities in India. High prices, coupled with a reduced supply of affordable homes, have been highlighted as key challenges. Despite the current market conditions, builders and brokers remain optimistic that demand will increase during the festive season.

Strategic Acquisition and Future Projects

In a move to bolster its portfolio, Kolte-Patil recently acquired a 7.5-acre land parcel in Pune, earmarked for a housing project valued at approximately Rs 1,400 crore. This upcoming development is set to encompass an estimated saleable area of around 1.9 million square feet. The company has not disclosed the seller’s identity nor the exact acquisition cost.

Kolte-Patil Developers has established itself as one of India’s leading real estate firms, having developed and constructed over 68 projects across Pune, Mumbai, and Bengaluru. These projects include residential complexes, integrated townships, commercial properties, and IT parks, covering a cumulative saleable area of more than 30 million square feet.

As the market navigates these challenges, Kolte-Patil Developers continues to adapt and seek opportunities for growth, reflecting the dynamic nature of the Indian real estate sector.