Hey Ashish, I think you’re being too kind. In my view, based on my personal and anecdotal experience, way more than 25% of initial inventory is sold to brokers / other speculators. These speculators for example buy a 5,000 Rs/sqft villa by paying just 1000/sqft (mortgage, 20% of prop value) wait for a few months and sell the villa in a few months for 5300 /sq ft (5% appreciation in villa prices), but a 30% return on their invested capital.
That being said though, I think it is almost irrelevant from Arvind infra’s perspective. Irrespective of who the buyer is (end user or speculator) Arvind get’s the money which reduces working cap and enables them to construct.
Additionally, land Speculator and real estate brokers have a really good grip of their respective markets. If they are snapping up these villas, they expect a pretty good appreciation /demand for it (otherwise why would they buy it)
Am i missing something out? I think bookings are a good barometer of assessing the perceived attractiveness of a real estate project.
On a totally side note, since we are on the subject – An interesting panel discussion on the current real estate scene (Motilal oswal real estate panel) Link below.
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