Prestige Estates is set to launch four significant real estate projects in Mumbai and Bengaluru during the July-September quarter of the current financial year, according to Chairman and Managing Director Irfan Razack. This announcement was made during an investors’ call on August 1.
In addition, the company is planning to introduce three projects in the Delhi-NCR region during the October-December quarter, as reported by the Hindustan Times Although Prestige Estates had originally aimed to enter the Delhi-NCR market sooner, the timeline has been adjusted to align with market conditions.
Planned Projects for Mumbai and Bengaluru
Prestige Estates will unveil several high-end projects in both cities in the upcoming quarter. Razack detailed that these launches will feature premium residential and commercial spaces.
- Mumbai: The new projects will focus on the luxury market, including upscale residential and commercial properties.
- Bengaluru: Similar to Mumbai, Bengaluru will see the introduction of high-end residential and innovative commercial developments.
The company’s entry into the Delhi-NCR market has been moved to the October-December quarter. Razack confirmed that three projects are slated for launch in this period, which will contribute to the company’s expansion in this key region.
Despite a strong market, Prestige Estates currently has very little inventory. Razack emphasized that the low inventory level is a positive sign, indicating a strong demand and efficient market strategy.
Prestige Estates is also expanding in the hospitality sector, with 955 keys under construction in Bengaluru and Delhi-NCR. The company currently operates 1,465 keys in these regions.
The occupancy rates across existing malls are high, between 95% and 97%. The company is planning to construct 10 additional malls, with two already under construction.
In the office sector, Prestige Estates reports occupancy levels of over 90%, except for a few new properties. The company’s current debt in the residential sector stands at approximately ₹5,000 crore, primarily due to recent land acquisitions.
During the April-June quarter, the company invested ₹1,500 crore to expand its land bank in cities including Delhi, Goa, Hyderabad, Mumbai, and Bengaluru.
For the April-June quarter, Prestige Estates reported a 13% decline in consolidated net profit to ₹232.6 crore, attributed to increased expenses. The previous year’s net profit was ₹266.9 crore. Despite this, the average realization per square foot for apartments, villas, and commercial spaces increased by 16% year-on-year.
- Performance Metrics:
- Net Profit: ₹232.6 crore, compared to ₹266.9 crore in the previous year.
- Sales Volume: 1,364 units sold, totaling 2.86 million square feet, down from 3.83 million square feet in Q1 FY24.
- Average Realization: ₹11,934 per square foot for apartments and commercial spaces; ₹7,285 per square foot for plots.