The merger between Vistry Partnerships and Countryside Partnerships has made Stephen Teagle, chief executive of Vistry Partnerships, optimistic. He is sure that the firms will exponentially increase their sales.

The current economic crisis in the UK is a cause of concern for companies and business owners. The demand for the housing industry is also going down. Despite that, the merged group is optimistic about generating more sales for themselves and thriving.

The takeover of Countryside Partnerships by Vistry on Friday was completed with £300 million in cash and 128 million shares of Vistry. The massive merger between the two groups has made them equal to Taylor Wimpey and Persimmon.

Stephen Teagle, the chief executive of Vistry, in an interview with Housing Today, said that they are expecting to deliver more than 15,000 homes a year.

Is real estate a good investment in India?

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Real estate: The boom, bust, boom sector

One of the unexpected happy stories of the ongoing Covid pandemic has been the revival of the real estate sector. Low interest rates, cut in stamp duties and the popularity of work-from-home culture resulted in a K-shaped recovery in the residential segment in the pandemic year. And why only domestic investors, even FPIs continue to repose faith in the realty sector.

FPIs still investing in realty stocks

While foreign portfolio investors (FPIs) went on a selling spree on Dalal Street in the last two months amid fears over earning downgrades due to Covid 2.0, inflows into realty sector continued. Real estate stocks saw net inflows of $213 million in April and $710 million in March.

Proof is in the pudding: Housing loan market rebounds

The housing loan market rebounded, registering a year-on-year growth of 9.6% in terms of portfolio outstanding (PoS) in the third quarter of FY2021, despite the Covid pandemic, says a report released by credit information bureau CRIF High Mark. While growth was flat in quarters ending March 2020, June 2020 and September 2020 due to Covid-19 pandemic, there was a rebound in housing loan originations in the quarter ending December 2020, leading to 4.52% per cent growth in PoS, the report noted.

Why Covid won’t dampen medium-term outlook for realty estate

Mahesh Patil of Aditya Birla SunLife AMC says: “Interest rates are not going to go up in a hurry and are likely to remain below 7%. Property prices are also stable with only mild corrections. I do not see property prices going up in a hurry. The affordability gap remains fairly good compared to what it was five years back and that will see a revival in the sector slowly and steadily. The lockdowns could be a temporary dampener in terms of new bookings. But that does not alter the medium term outlook for the sector which is reviving."

So who all are buying these properties?

According to Anarock, 90% of the total housing sales in Delhi NCR & MMR (Mumbai Metropolitan Region) post Covid-19 (July 2020 - March 2021) period was to end-users in both Delhi and Mumbai and only 10% to investors. This appears to be the 'new normal' in pandemic. Only 15% of end-users in Delhi NCR upgraded to bigger property vs 65% in MMR.

He also mentioned the decision to merge the two businesses will help them in accelerating the process of delivering houses. He said they are using all the assets they have got to deliver as many projects as they can.

Greg Fitzgerald, the chief executive of Vistry group, said that Friday was a historic day for them. He mentioned that by combining both groups they are bringing together the best.

FAQs:

What is the settlement between Vistry and Countryside?
The Vistry takeover was settled with £300 million in cash and 128 million shares of Vistry.
What is going on with the housing market in the UK?
With the prediction of an upcoming recession, housing demands are lowering. Limited supply and high demand are also causing trouble for people.

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Vistry aims at exponential increase in sales following mega-merger with Countryside

Friday was a historic day for Vistry Partnerships and Countryside Partnerships. Both groups have merged, and they are optimistic about increasing sales.