'There is vacuum in NCR realty market and we plan to fill it'

New Indian Express

11-05-2025

Bengaluru-based Prestige Group has marked its foray into Delhi-NCR's competitive residential real estate market with the launch of Prestige City Indirapuram. Within seven days, the developer sold 1,200 units, raking in over ₹3,000 crore, and aims to sell all 3,421 units in the coming weeks. But the group isn't stopping there. Spotting a vacuum in the NCR market, Prestige Group aims to establish itself as a key player by leveraging its strengths: offering affordable luxury homes and ensuring timely delivery. In an exclusive interview with TNIE's Arshad Khan, Prestige Group's Chairman and Managing Director, Irfan Razack, shared insights on the NCR launch, the company's expansion plans, detail on the much-anticipated IPO of its hospitality arm and more. Edited excerpts:
You are planning to be among the major realty players in the NCR market. How are you going to achieve this?
We are already among the top 3-4 players in the country in terms of sales and market capitalisation. We have a presence across all the major cities. The only thing (to succeed in the market) is consistency. You will have to consistently bring new products and deliver them on time. We are building a strong pipeline in Delhi and are exploring various opportunities both in Noida and Gurugram. We are also constructing a metal commercial project in Aerocity, Delhi. People are offering us land. However, we will have to evaluate whether it would make commercial sense or not before finalising a deal. Then there is the niche KG Marg project that is targeted to a different sort of audience. There is a regulatory hurdle related to the height of this property. Once it is cleared, we will start work there.
Given that the NCR market has traditionally been investor-driven rather than end-user-centric—a dynamic that has often raised concerns—what makes you bullish about its potential?
There was a temptation to sell the property as early as possible. Many brokers approached us for those who wanted to buy in bulk. However, we denied them and chose to sell only to individual customers. What makes me bullish is that there is a vacuum. DLF is the biggest player and they are established in the Gurugram market. There is nobody in the Noida and Ghaziabad markets. Godrej has been here for a short time. There were so many big players in the Noida market. Unfortunately they all got extinguished for some or the other reason. We believe that there is an opportunity here given the massive urbanisation happening in the capital market.
Why did you opt for an affordable luxury project instead of premium Rs 5-6 crore homes like Gurugram developers? Do you foresee a near-term price correction in the market?
That is madness and it won't sustain. Even in Hyderabad, people are making the mistake of launching super expensive projects. I tell my developer friends to do some introspection that everybody is not like you. Since a lot of money chases land, it becomes expensive, so they can't lower property prices now. Construction costs are going up and there is a labor shortage . For me this is a big challenge. With all the tariffs coming up, the cost of everything is going up.
When is Prestige Hospitality Ventures getting listed? Do you plan to list more companies in future?
We have already filed the DRHP with SEBI. When the approval comes, we will do it. Hopefully, by August, we should be able to launch the IPO . There is a lot of interest in the market. Lots of funds are showing interest in picking up stakes before the listing. This would be a big thing for us. Our whole gameplay is that once we finish the IPO for hospitality, we plan to build a big mass for offices and retail. That way, we will create two different vehicles. And then we plan to make one group company into four different companies having four different verticals, doing different jobs with four different responsibilities and four different leaderships. Plus we got property management and our own contracting company, which is so small but can emerge as a big vertical.
Bengaluru share in your sales mix remains more than half. How is this changing given your rapid expansion in other markets, including Delhi?
Though Bengaluru will not degrow, what will happen is that our percentage of sales which at one point of time was 80% in Bengaluru and 20% in other cities, will continue to change. The way we have grown, Bengaluru will be 30% and other cities would be 70% at some point of time. This year, we have exciting properties coming up in Mumbai. Then there is Goa and a lot is happening in Bengaluru and Hyderabad.
Housing sales have been under pressure for the past few quarters. Do you expect a revival in sales given that the RBI is expected to go for more rate cuts this fiscal?
If the interest rate falls, it becomes more affordable because the EMIs will drop. This is a good factor in the market. Business keeps on happening. The important thing is if your location is good, the product is decently priced and sized, it will sell on time. We have done business in the best of times and in the worst of times. We don't hold any inventories. We are able to sell out.