Dinesh Gupta, chief operating officer, Ansal Properties tells CNBC-TV18 that though sales figures are seen going down in Q2 for the company, realisations are up on account of vertical expansion catering to different asset classes.
Real estate has many more windfalls to brave. Apart from DLF having to call off its Goa project, reports suggest that sales for Ansal Properties are on the wane. The company which pushed in 7.99 million square feet during the last monsoon season has managed to sell only 2.64 million square feet this time.
Dinesh Gupta, chief operating officer, Ansal Properties joins CNBC-TV18 to clear the air and highlight the way forward for the company. He says that realisations have increased for the company, primarily on account of the different asset classes that they are selling to.
Ansal has been moving into the built-up houses and even low-rise group housings and vertical apartments too.
Below is the edited transcript of the interview. Also watch the accompanying video.
Q: There are reports doing the rounds that your sales have reduced in terms of total quantum this quarter on a year-on-year basis, but realisations have improved. Just take us through what the dynamics were this time around?
A: We had anticipated this dip in the quantum because of seasonal fluctuations and typically, quarter two tends to be slower in terms of quantity. Though, realisations have increased, primarily on account of different asset classes that we are selling to. We have gradually shifted from just being a horizontal developer to more of a vertical developer within the townships that we are working on. By vertical, I mean we are moving into the built-up houses or even low-rise group housings and vertical apartments too. That has been the reason for the increase in the average realisation, minimum being about Rs 600 and maximum going up to even Rs 6,300 a square foot, getting us an average of about Rs 1,350 a square foot for the quarter. So I donGet access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.