Embassy bets big on ready-to-move luxury homes after selling 75% inventory

Looks to sell balance 25% in 1-2 years, says will get the structure of future projects ready before marketing so that customer get touch-and-feel

Real estate player Embassy Group, which is seeing a resurgence in luxury portfolio with enquiries even more than pre-Covid level will be focussing on ready to move-in homes in the segment. The company has already sold 75 per cent of its total inventory in the segment and is looking to sell the balance 25 per cent in 1-2 years from now.

“From here on, we would like to get the structure ready even before we start marketing it. That will be the way to go. The more we are in the space we realise the customer wants to touch and feel the product before they want to put in their money,” said Reeza Sebastian Karimpanal, President, Residential Business, Embassy Group.

Apart from the Rs 6,000-crore ready-to-move-in stock, another Rs 250 crore of investment can realise Rs 10,000 crore of surplus from launched residential assets of the merged Embassy Indiabulls Real Estate development platform. So, the focus would be to liquidate that and use the platform to build the luxury portfolio further, added Karimpanal. 

The company has so far sold Rs 150 crore worth properties in the luxury portfolio since the pandemic broke out and is expecting a 15-120 per cent increase in the next 2 quarters.

Post the Covid outbreak, the concept of managed residence is a hit. “Unlike a regular apartment project where common areas are maintained, in luxury projects we also maintain inside of the apartments including housekeeping services. Hence the reason why we are seeing traction in the segment,” said Karimpanal.

In the residential space, Embassy is also venturing into senior living via a 50-50 joint venture partnership with Columbia Pacific Communities for the first project at Embassy Springs, spread across 0.4 million sq ft. An amount of over Rs 1,000 crore would be invested for the senior living projects to come up in the southern metros of Bengaluru, Chennai and Hyderabad, along withMumbai, within three to five years. It may also potentially target Tier 2 cities in the same time span.

The first set of homes in the senior living segment will be rolled out in the third quarter next year with prices starting at Rs 50 lakh. 

The company has already rolled out an asset light management business named Olive Residences under its co-living brand Olive by Embassy. Under this, the company will be taking up existing residential buildings and hotels in partnership with owners for a performance-based management fee. These buildings will provide both short-term and long-term stay options.