Improvement in quarter-to-sell for major realty players aided by pick-up in sales

The operational health of the real estate sector has improved significantly during FY2018 as compared to FY2017, as per an ICRA report. In FY2018, quarter-to-sell (QTS) has improved to 10-quarters at the end of March 2018, from 14-quarters as at the end of March 2017 for 11 listed realty companies, the report said. The QTS reflects the number of quarters required to sell the available inventory as well as a denominator of the real estate sector’s recovering operational health. "Improving demand sentiments as well as preference for an established brand with a proven track record of delivery is resulting in customers gravitating towards bigger players. Notable pick-up in demand coupled with steady new launches has resulted in an improvement of QTS. In the post-RERA era, we expect the organised players to gain market share. Further, new sales outstripped new launches for the first time over the last four years ending FY2018," said Manav Mahajan, AVP, ICRA.