'We are planning Rs 3,500-4,000 crore projects in FY26'

New Indian Express

25-05-2025

Mumbai-based realty developer Arkade Developers is planning to launch four projects in the financial year 2026, which will have a combined gross development value (GDV) of Rs 3,500-4,000 crore. The company is confident of maintaining a 20% compounded annual growth rate (CAGR) in the short to medium term after reporting a similar growth in FY25. Last week, Arkade reported profit growth of 27.7% at Rs 157 crore for the year ended March 31, 2025. Revenue for the year rose 9.3% to Rs 695 crore. In an interview with TNIE's Arshad Khan, Amit Jain, chairman and managing director of Arkade Developers spoke about key product launches, competition in Mumbai's housing market, plan for FY2026, the slump seen in housing sales and more. Edited Excerpts:
How was FY2025 for you? What are the big launches coming from Arkade in FY26 and what would be their combined GDV?
We are planning four key project launches this fiscal. The most significant among them is our Filmistan project in Goregaon. We have three redevelopment projects in the pipeline, located in Santacruz West, Goregaon West, and Malad West. Collectively, these four launches are projected to have a GDV in the range of Rs 3,500 to Rs 4,000 crore. We have been achieving a 20% growth historically and we will be achieving the same in the years to come. Our revenue is expected to grow 20% in FY25 at about Rs 850 crore.
FY25 marks a year of prominence in which we acquired the legendary 4-acre land parcel in Goregaon, leased to Filmistan Pvt. Ltd, having an estimated GDV of Rs 2,000 crore. We acquired land parcels and development rights, cumulating to 17.5 acres in western suburbs with a projected GDV of Rs 6,790 crore, including the locations – Andheri, Santacruz, Borivali, Malad and Dahisar. Our expansion strategy into the eastern Mumbai suburbs for the greenfield projects, alongside a solid pipeline of redevelopment projects in the western suburbs, will serve as key growth drivers as we leverage our healthy balance sheet and robust cash flows. Our strategy is aligned with the overall market trend towards luxury housing. With accelerating demand, we are well-positioned to maintain a sustainable growth trajectory.
Mumbai's real estate market has become highly competitive with big names such as Adani and Prestige having aggressive pipelines. How do you see this emerging competition for native players like you?
There is enough room for everyone to grow in this market. Not every buyer has a budget of Rs 10 crore and upward. There is a lot of demand for 2BHK properties. The redevelopment of old properties is here to stay. There are 20,000 buildings in MMR which are due for redevelopment. There is a big opportunity for us and the other players are also here. Though there is land scarcity in the region, there are many land parcels up for grabs. We are in the process of acquiring a major land parcel in Thane and continue to hold talks with other landowners.
Housing sales have been under pressure for the past two quarters. Do you expect the slowdown to continue?
Housing is one of the biggest human aspirations and the ambition to buy a new house or shift to bigger homes is always there. The slowdown is temporary but the needs of the house will always be there. There are cyclic phases and they cannot eliminate the industry growth as a whole.
Real Estate prices have shot up sharply in recent years. Do you expect property prices to remain at elevated levels?
The cost of construction has gone up significantly, be it raw material prices or the GST levied by government bodies. Land prices too have gone up. I do not control the prices, the market forces do. When the construction cost and land prices will come down, then the prices of property may come down. That being said, buyers may turn cautious due to increasing prices but the requirement for homes will always be there.