Piramal Realty eyes Rs 2,200 cr sales bookings in FY23, up over 40% YoY

Piramal Realty is targeting about Rs 2,200 crore sales bookings this fiscal, up over 40 per cent year-on-year, on strong housing demand, its CEO Gaurav Sawhney said.

Founded in 2012, Piramal Realty is the real estate development arm of business conglomerate Piramal Group. It is one of the leading developers with 15 million square feet of residential and commercial space under development in the Mumbai Metropolitan Region (MMR).

In an interview with PTI, Sawhney said the company has achieved average annual sales bookings of around Rs 2,000 crore in the past five years as it witnessed robust demand for its residential properties across four projects that it has launched so far.

Asked about the performance this fiscal, he said, "Our target is in the range of about Rs 2,200 crore. So as of now we look confident that we will cross the Rs 2,000 crore mark, given the demand is buoyant."

Sales bookings were more than Rs 1,500 crore last financial year, he informed.

Piramal Realty is developing around 12,000 apartments, covering 13 million square feet area, in phases across four residential projects in Mulund, Thane, Mahalaxmi and Byculla in the MMR.

Sawhney said the company is focusing aggressively on delivery. It has already started handing over the first set of 1,000 apartments to its customers totalling about 1 million square feet.

In the next two years, Piramal Realty is targeting to deliver another 60,00,000 (6 million) square feet.

"We will be making an investment of more than Rs 3,500 crore in construction over the next two years," Sawhney said.

In this 6 million square feet area, about 4,500-5,000 apartments will get delivered.

Out of the 13 million square feet of planned development, Piramal Realty has so far launched around 8-8.5 million square feet in these four projects. The remaining 4-5 million square feet will be launched over the next two years.

The total sales revenue potential in these four projects is estimated at around Rs 20,000 crore, of which around 50 per cent has already been achieved, he said.

Sawhney highlighted that the company has established itself in the premium luxury segment of the market, with a lot of emphasis on green initiatives, better use of space inside as well as outside the apartments and community living.

"I can say at least in MMR we hold a decent position overall, now that people are continuing to invest in the brand and have bought into the promise very well," he observed.

Sawhney noted that housing demand remains strong despite rise in interest rates on home loans.

He said the mortgage rate is not the only factor in the customers mind while buying properties. Disposable income, job security and salary increments are some of the other factors.

"We feel that post COVID, there is very strong sentiment of home buying, which gives us the confidence that it will continue to drive the demand in the market," he added.

To encash this demand, Sawhney said the company is looking at adding more land banks for future developments.

It is exploring partnerships with land owners for joint development.

In 2015, Piramal Realty had raised USD 235 million at an entity level from private equity players Warburg Pincus and Goldman Sachs.