Prestige Estates Projects Ltd, based in Bengaluru, is in the process of collaborating with a local real estate company to create a high-end housing development in central Delhi. The company, led by its CMD Irfan Razack, is also actively seeking additional land in the Delhi-NCR region for the construction of residential properties. In recent years, Prestige Estates has entered the Delhi-NCR market and is presently engaged in the development of a commercial project in Delhi's Aerocity, as well as partnering with ACE Group for a mid-income housing project in Sector 150, Noida.
"The approval for Noida Sector 150 has been stuck for a long time. We are waiting for the approvals for launching a 15 acre mid-income housing project," said Razack, the Chairman and Managing Director of Prestige Group. He was speaking on the sidelines of the CREDAI-NATCON event in Egypt held on October 5-8.
"We have taken one very high-end development in KG Marg, Delhi. It's a JDA (joint development agreement) with TDI. We have just done the initial term sheet. We have done initial payment to Indiabulls to clear some debt," Razack said.
"In KG Marg, Delhi, the land parcel spans approximately one acre. The project is currently in the planning and approval phase, with expectations of a launch within the current fiscal year," Razack mentioned. The Aerocity commercial project, featuring two prominent hotels, is slated for completion by 2025-26. Prestige Estates is actively exploring opportunities for additional residential projects in the Delhi-NCR region. Regarding operational performance, the company anticipates a 55 percent increase in sales bookings this fiscal year, aiming to reach a record high of Rs 20,000 crore, driven by robust demand for residential properties. Sales bookings for the year 2022-23 stood at Rs 12,931 crore.
Razack expressed confidence, stating, "We've already achieved pre-sales of approximately Rs 11,000 crore in the first half of the year. Although we initially aimed for Rs 16,000 crore for the entire 2023-24, with Rs 11,000 crore in sales within the first six months, the team is highly optimistic. Once approvals are secured and launches occur, we anticipate crossing the Rs 20,000 crore mark." He emphasized strong demand for residential properties across various price brackets and the growth potential in a consolidating sector.
The company has an ambitious launch pipeline for the second half of the fiscal year, spanning major cities like Bengaluru, Hyderabad, Chennai, and Mumbai. Additionally, Prestige Estates plans to introduce luxury housing projects in Goa and Delhi. During the April-September period of this fiscal year, Prestige Estates sold 10.7 million square feet of area, generating Rs 11,007 crore in sales from 5,935 units. The average realization for apartments/villas was Rs 10,338 per square foot, while plots averaged Rs 4,825 per square foot.
Prestige Estates initiated 16.20 million square feet of development and completed 8.11 million square feet in the first half of the fiscal year. With a legacy spanning over three decades in real estate development, Prestige Group has diversified its business model across multiple sectors, including residential, office, retail, hospitality, property management, and warehouses, with a presence in more than 12 major Indian locations. The company has successfully completed 285 projects covering a developable area of 170 million square feet, and it currently has 54 ongoing projects across various segments, with a total developable area of 75 million square feet.
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