Luxury is a small percentage of any developer's portfolio: Tariq Ahmed

As the real estate sector undergoes a transformative shift, Tariq Ahmed, CEO-West India, Prestige Group, a Bengaluru-headquartered realtor, delves into its evolving dynamics in a video interview with Aneeka Chatterjee. Edited excerpts:

How have tech and consumer trends shaped India’s real estate?
 

The times of Covid-19 were a significant inflection point. Now, there is a growing need for larger living spaces. These are spaces for families to enjoy, with larger living areas, decks, and open spaces. People desire fresh air and balconies. However, when Development Control and Pollution Regulation guidelines changed, balconies were removed due to floor space index (FSI) constraints. Now, people want homes where they can enjoy fresh air.
 

Another significant trend is community building, featuring amenities like play areas, community gathering spots, sports facilities, badminton, squash, swimming pools, and more. A highly community-oriented living experience is precisely what people want.
 

Sustainability and technology are also important. People are concerned about whether materials like cement, concrete, and bricks are sourced sustainably and recycled. Technological advancements focus on user-friendliness, including guest management and security features like cameras.
 

Technology also enables home management through applications, including automation, guest access, and security. These are the key themes and trends we are seeing in terms of what people want.
 

Which segments in Prestige’s portfolio will perform better in the coming quarters?
 

Nationally, we have always been a mid-segment player. While we do offer luxury projects, we have not ventured into the affordable segment. If we examine the economic pyramid of India, where wealth and economic growth are concentrated, it is in the mid-segment. We believe this segment will grow the fastest.
 

Today, there is much talk about luxury growth, but as a percentage of the overall portfolio for Prestige or any developer, it's a small piece. The mid-segment constitutes the bulk of our business and drives cash flow. While luxury remains important for us, with several remarkable projects in the pipeline, Prestige is renowned for its mid-segment offerings. Executing large mid-segment complexes is and will continue to be our core focus.
 

What are a few innovations you have incorporated into your recent projects?
 

We design our products with a strong emphasis on family living, creating environments where large families can gather and form vibrant communities. We aim to create spaces where people feel comfortable spending time at home, and even working from home.
 

Additionally, we view real estate with a perspective similar to the FMCG (fast moving consumer goods) sector. This means we prioritise the quality of our designers in architecture and interior design, focusing on air circulation, water treatment, and overall quality. We take pride in our facility management, ensuring that the upkeep of our real estate remains a critical aspect even after construction is complete. This commitment to maintenance and property management is something we have excelled at nationally and will continue to emphasise.
 

How do you plan to adapt to the changing landscape and stay competitive?
 

Staying competitive involves product design and the value we offer to consumers. A useful analogy is Apple’s success among consumers, driven by the quality and user-friendliness of its products. Similarly, Prestige aims to offer products that consumers desire and value.
 

For us, it’s about both external and internal design. For example, we ensure our kitchens accommodate the needs of every Indian household. In the luxury segment, we strive to offer exceptional products that justify their price. Prestige does not position itself as a discount leader; instead, we focus on providing high-quality, desirable properties that stand out in the market.
 

How do you plan to strengthen your portfolio in the coming quarters?
 

Like other developers, we too need raw material to continue to launch. In this quarter, we’re going to have launches that will be in our mid-segment and luxury segment in South Mumbai. We will have probably one or two more projects, and will probably expand into new geographies in Mumbai such as Thane and Navi Mumbai. 
 

At the bare minimum, a significant area of geographic expansion is the Delhi-National Capital Region. Hyderabad has been a very large market for us. Bengaluru continues to be the home base for us, and will demonstrate continued launches. 

In Goa, there will be activities in the coming months.