Prestige Group to launch luxury housing project in Delhi's KG Marg this yr

Bengaluru-based Prestige Estates Projects Ltd plans to develop a luxury housing project in central Delhi in partnership with a local realty firm and is looking for more land in Delhi-NCR to build residential properties, its CMD Irfan Razack said.

Prestige Estates had forayed into the Delhi-NCR market a few years ago. It is already constructing a commercial project in Aerocity, Delhi while partnering with ACE group for a mid-income housing project in Sector 150 Noida.

"The approval for Noida Sector 150 has been stuck for a long time. We are waiting for the approvals for launching a 15 acre mid-income housing project," said Razack, the Chairman and Managing Director of Prestige Group.

He was speaking on the sidelines of the CREDAI-NATCON event in Egypt held on October 5-8.

"We have taken one very high-end development in KG Marg, Delhi. It's a JDA (joint development agreement) with TDI. We have just done the initial term sheet. We have done initial payment to Indiabulls to clear some debt," Razack said.

The land size in KG Marg, Delhi is about an acre, he said.

"The project is under the planning and approval stage. We hope to launch this project in this fiscal itself," he said.

The Aerocity commercial project, which has two big hotels, will be completed by 2025-26.

Razack said the company is looking at Delhi-NCR for more residential projects.

On the operational performance, Prestige Estates expects its sale bookings to rise 55 per cent this fiscal to touch an all-time high of Rs 20,000 crore driven by strong demand for residential properties.

Its sales booking stood at Rs 12,931 crore in 2022-23.

"We have done pre-sales of around Rs 11,000 crore in the first two quarters. We had guided around Rs 16,000 crore (for the entire 2023-24). But having done Rs 11,000 crore of sales in the first six months, the team is very confident. Once all the approvals come and launches happen, we should cross Rs 20,000 crore," Razack said.

He sounded very bullish on demand for residential properties across all price brackets.

"There is a huge demand for housing. We have a strong brand to capitalise it. The sector is going through consolidation. So, there is immense growth potential," Razack said.

He said the company has an aggressive launch pipeline for the second half of this fiscal across all major cities, including Bengaluru, Hyderabad, Chennai and Mumbai.

It also plans to launch luxury housing projects in Goa and Delhi.

During the April-September period of this fiscal, Prestige Estates sold 10.7 million square feet area for Rs 11,007 crore. Together 5,935 units were sold.

The company achieved an average realization of Rs 10,338 per square foot for apartments/villas. The average realization of the plot was Rs 4,825 per square foot.

Prestige Estates launched 16.20 million square feet of area and completed 8.11 million square feet during the first six months of this fiscal.

Prestige Group, one of the leading real estate developers in the country, has a legacy of over three decades in real estate development.

It has diversified its business model across various segments -- residential, office, retail, hospitality, property management and warehouses -- with operations in more than 12 major locations in India.

Prestige Group has completed 285 projects spanning a developable area of 170 million square feet and has 54 ongoing projects across segments, with a total developable area of 75 million square feet.

Further, it is planning 48 projects spanning 99 million square feet. The group holds a land bank of over 710 acres as of June 2023.