Prestige Estates to Launch Major Township Project in Ghaziabad with ₹7000 Crore Investment
Bengaluru-based Prestige Estates Projects Ltd has announced a significant investment of approximately ₹7,000 crore to develop a sprawling township project named "Prestige City" in Ghaziabad, part of the Delhi-NCR region. This ambitious project is anticipated to launch within the current quarter, contingent upon securing all the necessary regulatory approvals.
The Chairman and Managing Director of Prestige Group, Irfan Razack, expressed his optimism regarding the housing market in Delhi-NCR. He sees substantial potential in the region, suggesting that with consistent land acquisitions, the company could achieve residential sales reaching ₹10,000 crore annually. This bullish outlook is reflected in the recent expansion of Prestige Estates into the Delhi-NCR market, highlighted by their acquisition of 62.5 acres of land at Indirapuram Extension in Ghaziabad, a strategic move for the upcoming township development.
The township, Prestige City, is set to encompass a significant 10 million square feet of residential space, featuring a mix of 2, 3, and 4 BHK apartments. Mr. Razack noted that this project will not only focus on residential units but will also include components for retail and educational facilities, indicating a holistic approach to urban development. The land for the project was secured for over ₹450 crore, with the overall development costs projected to range between ₹6,000 to ₹7,000 crore.
In terms of financing, ,Mr. Razack mentioned that the construction costs would primarily be covered through funds collected from customers against their bookings. This approach emphasizes Prestige's commitment to targeting end-users, ensuring that the project aligns with the needs and preferences of homebuyers in the region. By offering a range of apartment sizes, the project aims to cater to various segments of the housing market, enhancing its appeal to potential buyers.
Additionally, the company's expansion strategy in Delhi-NCR includes acquiring another one-acre land parcel in Central Delhi for an ultra-luxury housing project, with approvals currently pending. This move underscores Prestige's ambition to diversify its offerings in the high-end segment, positioning itself to capture a broader market share.
Prestige Estates is also actively pursuing commercial developments, with a notable project underway in Aerocity, Delhi. This commercial venture, featuring 7 lakh square feet of office space, has already been fully leased to prominent corporate clients, reflecting the growing demand for quality commercial real estate in the region. Mr. Razack indicated that the Aerocity project is on track for completion by the end of next year, further solidifying Prestige's foothold in the commercial sector.
Prestige Estates is also continually evaluating additional land parcels within Delhi-NCR, aiming to build a robust pipeline for future development. Mr. Razack emphasized the immense business potential in the Delhi-NCR market, reiterating his belief that the company could easily achieve annual sales of around ₹10,000 crore if it maintains a steady influx of land acquisitions.
In the context of the broader real estate market, Prestige Estates has made impressive strides over the past fiscal year. During the 2023-24 financial year, the company recorded a remarkable sales booking of ₹21,040 crore, setting an ambitious guidance of ₹24,000 crore for the current financial year. The sales performance for the July to September period demonstrated a strong foundation, with sales amounting to ₹4,022.6 crore compared to ₹7,092.6 crore in the same quarter of the previous year.
With the increasing demand for quality residential and commercial spaces, companies like Prestige Estates are set to benefit from new opportunities. Their strategy of expanding into high-demand areas like Delhi-NCR, along with a varied portfolio of projects, enable them to meet evolving buyer’s demand.
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