However, as per Nitesh Estates' COO Ashwini Kumar, the commercial space has done really well. Nitesh Estates, real estate arm of the Nitesh Group, is an integrated property development company headquartered in Bangalore, India, with presence across 4 asset classes. It develops state-of-the-art Homes, Hotels, Office Buildings and Shopping Malls. In few years of operations, the company has more than 20 million sq ft of premium living, retail and work spaces under various stages of development.
In an interview with CNBC TV, he said that the Bangalore market for the company is doing flat but the number of the leads and bookings are not going down. Talking about the Banglore projects in detail, he said, "We had launched two projects over the last few months, one is called Melbourne Park and another is what we call Chelsea and both of them have done fairly well in terms of the initial bookings that we
got. If you look at the old projects there it has gone into a relatively slower mode. The moment the ticket size is of the unit goes up to more than Rs 2-3 crore then that is where we find that the decisions are not being taken by the customers. However, in space of about Rs 5000-6000 per square feet the mid-income home segment, there we are seeing that transactions are happening".
The company expects 60-70 percent revenue growth by FY16 as the company will be launching few projects in the early part of FY16.
Commenting on the overall sales company forecasts in the coming quarter, he said, "We are doing about, in terms of sales roughly about 0.2-0.3 million sq ft. That is the range in which we have been doing and I expect that we will continue to retain that rate for another couple of quarters. So we are looking forward to launching another three projects within this quarter so that might give us once again another Philips so that will raise the sales".
The company is confident about the improvement in commercial space in Banglore followed by residential space.
At 9:25AM, the stock of the company is trading down 1.15% at Rs. 11.13.