Real estate company Sobha Limited has provided an operational update on Q1FY21 as the economy recovers from the lockdown. Sobha argues that with COVID19, "priorities of people have changed, and they now have realized the importance of owning a home." Management across real estate companies are arguing that the COVID19 pandemic is in the longer term, not a negative for residential real estate sales. They have based this assumption on Chinese data, where home ownership has surged post pandemic as people began to prioritize long term investments over discretionary spending. 

Sobha says that despite the lockdown, the company saw "70% of sales volume during Q1FY21  compared to Q4FY20". "We were able to achieve this through online technological tools and our delivery track record," Subhash Mohan Bhat, CFO of the company said. During the quarter Sobha saw sales volume of 650,400 square feet valued at Rs 4.88 billion, with a total average realization of Rs. 7,498 per square feet. 

Sobha added that Bangalore was amongst the least impacted metros from COVID-19 so far and contributed to 74% of sales volume during Q1FY21. "With more and more companies opting for work from home, inherent demand for better quality homes, low interest rates and other benefits extended by government, demand is likely to sustain in the coming quarters and organized players are expected to perform better," Bhat added. 

The level of inquiries from customers are according to the company now close to pre-COVID levels. The company reduced its net debt and average interest cost of borrowing, the second consecutive quarter where net debt reduced.