Prestige Estates Eyeing Four Project Launches Across Mumbai and Bengaluru in Q2 FY25

Prestige Estates is gearing up to launch four new projects across Mumbai and Bengaluru in the second quarter of the current financial year (FY25). This ambitious plan, disclosed by Irfan Razack, Chairman and Managing Director of Prestige Estates, during an investor call on August 1, underscores the company’s aggressive expansion strategy in key Indian metropolitan areas.

Upcoming Projects in Mumbai and Bengaluru

Prestige Estates is targeting the July-September quarter for these significant project launches. Mr. Razack highlighted that August and September will see the commencement of at least three to four new projects in these two cities. This marks a substantial move for Prestige Estates, reflecting their confidence in the market’s robust demand for real estate.

In addition to these launches, the company has set its sights on the Delhi-NCR region, planning to introduce three new projects there in the October-December quarter. Although these projects were initially slated for the current quarter, their timeline has been adjusted to the next quarter to ensure thorough preparation and successful execution.

High-End Projects and Market Demand

Mr. Razack also mentioned that the third quarter will be particularly significant, with the Delhi-NCR projects coming into play and additional high-end developments in Mumbai and Goa. "There is a lot of inventory to come. As of today, the company has very minimum inventory. The positive thing is the market is still pretty strong, the demand is there," he said.

Current Inventory and Hospitality Segment

Prestige Estates currently has 955 keys under construction in the hospitality segment across Bengaluru and Delhi-NCR, with 1,465 keys already operational. The company’s retail segment is also performing well, with occupancy rates in its malls hovering around 95-97%. Mr. Razack highlighted that their strategic plan includes building ten more malls, with construction already underway for two.

Office Properties and Debt Management

The company’s office properties are enjoying occupancy levels above 90%, with only one or two new properties slightly below this mark. Regarding financial health, Razack stated that around ₹5,000 crore of the company’s debt is on the residential side. This increase in debt is attributed to recent substantial land acquisitions in Delhi, Goa, Hyderabad, Mumbai, and Bengaluru. During the April-June quarter, Prestige Estates invested ₹1,500 crore to bolster its land bank, underscoring their commitment to expansion and growth.

Q1 FY25 Performance and Financial Metrics

During the first quarter of FY25, Prestige Estates sold a total of 1,364 units, with a sales volume of 2.86 million square feet, a decline from 3.83 million square feet in Q1 FY24. Nevertheless, the company maintained a strong mix of sales from its top markets, with Bengaluru accounting for 43%, Hyderabad 32%, and Mumbai 23% of total sales.

In the June quarter, Prestige Estates launched two residential projects in Bengaluru, covering a total developable area of 1.86 million square feet and a combined gross development value of around ₹1,400 crore. The company, which has a presence in 13 cities with a footprint of 190 million square feet, continues to undertake diverse projects across residential, office, retail, hospitality, and warehousing segments.

Strategic Expansion and Market Outlook

Prestige Estates' aggressive expansion strategy and commitment to high-end projects in major metropolitan areas highlight the company's robust market position and forward-looking approach. With a healthy mix of ongoing projects and strategic land acquisitions, Prestige Estates aims to capitalize on the strong demand in the real estate market.

The company’s focus on launching significant projects in Mumbai and Bengaluru in the upcoming quarters reflects its confidence in sustained growth and market resilience.