Prestige Group eyes Rs 16,000 crore of residential sales in FY24
The Prestige Group, a Bengaluru-based real estate developer, has ambitious plans for its upcoming projects in the fiscal year 2024 (FY24). They intend to launch approximately 18 million square feet (msf) of residential property, which is expected to generate sales valued at more than Rs 16,000 crore. These launches will be spread across several major cities, including Bengaluru, Hyderabad, Mumbai, Chennai, and Kochi.
In more detail, the company’s CEO, Venkat K Narayana, mentioned that they will be focusing on specific areas within these cities for their residential developments. In Bengaluru, their focus areas for the current year include Whitefield and Varthur in the eastern part of the city, as well as Electronic City in the southern part. They plan to develop more than 10 msf of real estate in Bengaluru during FY24, which is an increase compared to the 8 msf they developed in the previous year.
Additionally, the Prestige Group has plans to expand its residential presence to Delhi-NCR (National Capital Region) in either the fourth quarter of the current year (2023) or early in the fiscal year 2025 (FY25). This expansion marks a significant move into one of India’s key real estate markets.
Overall, the Prestige Group appears to be aggressively expanding its residential real estate portfolio across multiple cities in India, with a focus on both established markets and new regions. This expansion strategy reflects their commitment to meeting the growing demand for residential properties in these areas.
According to Venkat K Narayana, the CEO of the Prestige Group, the company’s upcoming residential launches in Bengaluru will primarily target the mid-segment of the market, accounting for more than 70 percent of their offerings. These mid-segment properties are expected to have a ticket size (price range) ranging from Rs 1.5 crore to Rs 2 crore.
In addition to the mid-segment offerings, the Prestige Group also has plans to introduce more high-end villas to its portfolio in Bengaluru. Narayana mentioned that they currently have over 450 operational villas in the city, and they intend to add more in the fourth quarter of the year. These new villas are expected to have a higher ticket size, exceeding Rs 3 crore, indicating that they will cater to the luxury or upscale segment of the market.
This diversified approach to residential real estate development, which includes mid-segment apartments and upscale villas, allows the Prestige Group to cater to a broader range of homebuyers with varying budgets and preferences. It also reflects their strategic expansion to capture different segments of the real estate market in Bengaluru.
In the first quarter of fiscal year 2024 (FY24), the Prestige Group reported significant investments in its real estate projects. They allocated approximately Rs 1,200 crore towards residential construction and an additional Rs 350 crore for office spaces. These investments underline the company’s commitment to both the residential and commercial real estate sectors.
Looking ahead to fiscal year 2025 (FY25), the Prestige Group has ambitious plans for further residential launches. They anticipate launching upwards of 20 million square feet (msf) of residential properties in FY25, which is a substantial increase compared to the 16.46 msf launched in FY23. This expansion suggests that the company aims to capture a larger share of the real estate market in various cities.
Hyderabad is identified as the third-largest market for the Prestige Group, following Bengaluru and Mumbai. In FY24, they have plans to develop approximately 6.64 msf of residential properties in Hyderabad, demonstrating their focus on this thriving market. Recently, the company launched its largest township project in Hyderabad, featuring around 5,000 units. This significant development highlights their commitment to expanding their presence in Hyderabad’s real estate market and catering to the housing needs of the local population.
Overall, the Prestige Group’s investments, expansion plans, and strategic focus on different market segments and cities demonstrate their dedication to growth and prominence in India’s real estate industry.
The Prestige Group currently boasts an extensive portfolio of ongoing and upcoming projects encompassing various segments. They have a total of 174 million square feet (msf) dedicated to these projects, with 99 msf in ongoing developments. This includes a significant focus on the residential sector, with 76 msf devoted to residential properties, and an additional 15 msf allocated to office spaces. The remaining square footage is distributed across hospitality and retail projects.
In the commercial sector, the company has ambitious plans for Bengaluru, where they aim to launch more than 20 msf of office space within the next two to three years. Notably, Prestige has already introduced four office parks in Bengaluru, with one more slated for launch in the eastern part of the city. Over the course of the next 3-4 years, they plan to invest approximately Rs 5,000 crore in the commercial segment, with the goal of generating a rental income of Rs 3,000 crore.
Their strategic focus for office developments in Bengaluru includes key areas like north Bengaluru, Outer Ring Road, and Whitefield. In Mumbai, they have identified Bandra Kurla Complex and Mahalakshmi as promising locations for their commercial endeavors.
Furthermore, Prestige Group has committed substantial investments in ongoing and upcoming commercial projects, totaling around Rs 16,079 crore. Notably, more than 75 percent of this capital expenditure has been directed towards ongoing projects, according to Narayana.
In addition to their commercial ventures, the company is set to expand its retail presence by launching three malls in Bengaluru within the next financial year. They currently have 8 msf of mall space under construction, yet to be launched across Bengaluru, Chennai, and Hyderabad, with all of them expected to be unveiled within the second quarter of FY25.
