Prestige Estates, based in Bengaluru, plans to introduce four projects in Mumbai and Bengaluru during the July-September quarter of the current financial year, according to Irfan Razack, the company’s chairman and managing director, during an investors' call on August 1. Furthermore, the company aims to launch three additional projects in the Delhi-NCR region in the October-December quarter.
Razack mentioned, “In August and September, we expect to see at least 3-4 launches in Bengaluru and Mumbai. The third quarter will be significant as we'll also have projects launching in NCR. Additionally, we will introduce some high-end projects in both Mumbai and Goa."
He further added,"There is a substantial amount of inventory set to be released. Currently, the company has very little inventory. However, the positive aspect is that the market remains strong and demand continues to be robust."
The company currently has 955 keys under construction in the hospitality sector across Bengaluru and Delhi-NCR, with 1,465 keys currently in operation.
In the retail sector, mall occupancy rates are around 95-97%, according to Razack. He highlighted that the plan to build 10 additional malls is underway, with construction already started on two of them.
Razack also noted,regarding office properties, occupancy levels exceed 90%, with the exception of one or two new properties.
Razack mentioned that the company has approximately Rs.5,000 crore in debt related to residential properties. He explained that this is due to the recent acquisition of land in various locations such as Delhi, Goa, Hyderabad, Mumbai, and Bengaluru. Additionally, during the April-June quarter, the company allocated Rs.1,500 crore to expand its land bank.
On July 31, Prestige Estates reported a 13% drop in consolidated net profit to ₹232.6 crore for the April-June quarter, down from Rs.266.9 crore in the previous year, attributed to higher expenses.
The average realization for apartments, villas, and commercial spaces was Rs.11,934 per square foot, a 16% increase from the previous year. In contrast, plots achieved an average realization of Rs.7,285 per square foot, marking a 46% rise year-over-year.
During the first quarter of FY25, a total of 1,364 units were sold, with the sales volume reaching 2.86 million square feet. This represents a decline from 3.83 million square feet in Q1 FY24, according to the company's regulatory filing.
The company reported a balanced sales distribution across its key markets: Bengaluru (43%), Hyderabad (32%), and Mumbai (23%). In the June quarter, Prestige Estates launched two residential projects in Bengaluru, totaling 1.86 million square feet with a gross development value of approximately Rs.1,400 crore.
Prestige Estates operates in 13 cities with a portfolio of 190 million square feet, encompassing residential, office, retail, hospitality, and warehousing projects.
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