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Business Standard
8 hours ago
- Business
- Business Standard
Prestige Group aims 59% growth in FY26 sales bookings at Rs 27,000 crore
Prestige Estates Projects Ltd has set a target to sell properties worth Rs 27,000 crore this fiscal year, an increase of 59 per cent from the previous year, as it remains bullish on housing demand. Bengaluru-based Prestige Estates Projects' sales bookings declined 19 per cent annually to Rs 17,023 crore in the 2024-25 fiscal year on delays in regulatory approvals to launch its projects. The company had given a sales bookings guidance of Rs 24,000 crore for the last fiscal year, but it missed the target by a huge margin. In a conference call with analysts, Prestige Estates Chairman Irfan Razack said the company has set a conservative pre-sales target of Rs 27,000 crore for the current fiscal year. "So the strategy is I would rather under-promise and over-deliver," Razack told analysts, as per the call transcript uploaded on the stock exchanges. "...see, now what has happened is we had kept a target of Rs 24,000 crore for FY25, which of course, we fell short of. But I think this first quarter itself will give us some Rs 12,000-13,000 crore. So I believe we should cross Rs 25,000 crore, maybe Rs 27,000 crore... But I think let's take Rs 27,000 crore and go along for the year," Razack said. He said the company has inventories of Rs 20,000 crore in its ongoing projects and has a strong launch pipeline of projects worth Rs 42,000 crore for the current fiscal year. Prestige Estates Executive Director Zyad Noaman explained that the fall in pre-sales number last fiscal year was "largely due to the deferred launches". "However, this was offset by strong pricing power, average realisation for residential apartments, villas and commercial products rose 36 per cent year-on-year to Rs 14,113 per square foot, while plotted development saw a 50 per cent year-on-year increase," said Noaman. Looking ahead, he said the company has entered FY26 with renewed momentum. "Q1 has already seen a strong start with the launch of The Prestige City Indirapuram, a marquee township development in NCR with a GDV (gross development value) of Rs 9,000 crore, of which we have already sold over Rs 6,500 crore," Noaman said. According to its investors presentation, Prestige Estates will launch multiple housing projects across major cities this fiscal year with an estimated revenue of more than Rs 42,000 crore, as it looks to expand business to capitalise on strong consumer demand. The company plans to launch as many as 25 residential projects this financial year having 44.8 million sq ft of developable area with an estimated GDV of Rs 42,120 crore. These projects are lined up in Bengaluru, Chennai, Hyderabad, Mumbai, Delhi-NCR and Goa. During the 2024-25 financial year, the company launched lesser projects due to delays in regulatory approvals. Prestige Estates launched 26.28 million sq ft during the last fiscal year, primarily with a combined Gross Development Value of Rs 26,222.8 crore. On the financial performance front, Prestige Estates net profit fell sharply to Rs 467.5 crore in the previous fiscal year from Rs 1,374.1 crore in the preceding year. Total income, too, declined to Rs 7,735.5 crore in the last fiscal year from Rs 9,425.3 crore in the 2023-24 fiscal year. Prestige Group has developed more than 300 projects so far and is constructing a large number of properties across major states.
Hindustan Times
14-05-2025
- Business
- Hindustan Times
NRIs bet big on Bengaluru real estate, driven by strong dollar and US visa uncertainty
While domestic buyers continue to dominate Bengaluru's real estate sector, demand from non-resident Indians (NRIs) is on the rise, driven by the appreciating dollar and ongoing visa challenges in the United States, according to Zayd Noaman, president of CREDAI Bengaluru, in an interview with He said that the appreciating dollar has rendered Indian real estate investments increasingly attractive to NRIs, particularly those with a long-term investment horizon. "In recent years, we have seen a noticeable increase in NRI participation, driven by the appreciating dollar, making Indian investments more appealing, especially for long-term prospects," Noaman said. He noted that uncertainties surrounding US visas have prompted many NRIs to place greater trust in India's long-term growth story. "Amid the current uncertainty in the US, we anticipate that once the situation stabilizes, capital will start flowing back into India," Noaman remarked. Noaman expressed optimism about the potential positive impact on Bengaluru's real estate market, driven by increased NRI investments. However, he cautioned against the possibility of a sharp rise in property prices from current levels. Despite the inevitable shifts in global geopolitics, factors such as Trump-era tariffs are not perceived as significant challenges for the Indian real estate sector. Instead, the industry's primary focus should be on fostering innovation and leveraging technology, he said. With a stronger emphasis on local manufacturing, the government's Atma Nirbhar Bharat initiative is poised to strengthen the real estate sector and bolster the broader economy in the long run, he said. Also Read: Affordable housing: Bengaluru's ₹50 lakh homes now worth ₹2 crore; ₹1.5–3 crore is the new sweet spot, says CREDAI chief Noaman said that Bengaluru provides a comprehensive ecosystem for the tech industry, encompassing education, a robust talent pool, and ample opportunities for the real estate sector. He noted that most real estate buyers in Bengaluru are salaried professionals, with a significant number relying on home loans. "The majority are employed in IT companies or in roles that support the tech industry. As apartment prices continue to climb, we are also seeing growing interest from CXOs and business professionals, particularly those linked to the technology sector," he said. Regarding housing sales, Noaman noted that Bengaluru witnessed a slight decline in sales during the first quarter of 2025 compared to the previous year. Unlike the fast-moving consumer goods (FMCG) sector, real estate is highly dependent on regulatory approvals and compliance, which can lead to delays in project launches. He pointed out that last year's multiple elections also slowed down the approval process. Currently, Bengaluru has one of the lowest levels of unsold inventory among major cities, with just 2–3 years' worth of supply available in the market. Noaman said that as older inventory gets absorbed, and if new approvals are expedited, the supply situation is likely to improve.
Hindustan Times
14-05-2025
- Business
- Hindustan Times
Affordable housing: Bengaluru's ₹50 lakh homes now worth ₹2 crore; ₹1.5–3 crore is the new sweet spot, says CREDAI chief
The definition of affordable housing has evolved, especially in Bengaluru, where a ₹50 lakh house from 10 years ago can now cost ₹2 crore due to inflation. Homes priced between ₹1.5 crore and ₹3 crore are now considered the sweet spot for volume and sales, Zayd Noaman, president, CREDAI Bengaluru, told "Due to inflation, a ₹50 lakh home a decade ago could cost ₹2 crore now in Bengaluru. Salaries have increased, and the ₹1.5–3 crore range is now the sweet spot in terms of volume and sales in cities like Bengaluru today," Noaman said. Noaman noted that over the past two years, Bengaluru has seen significant growth in both volume and property prices. This surge in capital values is driven by the city's strong fundamentals, including a robust tech ecosystem, quality education, and a deep talent pool. Also Read: Credai Bengaluru president advocates for Mumbai-style redevelopment to tackle land challenges Noaman said that within the city centre, land is both scarce and costly, making it hard to acquire for residential use. For housing projects in prime zones to make economic sense, he said the development has to be of a special grade to justify the rent or sale price. "Improved infrastructure can pave the way for larger township developments on the outskirts of Bengaluru, but better connectivity is key to making them viable. For people to consider moving further out from the city centre, the government needs to prioritize expanding metro connectivity and improving road access," he said. Also Read: In Bengaluru, drones now deliver groceries and medicines to residents in under 10 minutes On Bengaluru's real estate potential, Noaman said that the city's radial layout leaves ample agricultural land on the outskirts. 'While central areas are saturated with limited and costly land parcels, the outer zones still offer opportunities for large-scale development—provided the infrastructure, especially metro and road connectivity, is improved to make these areas more livable,' he said. However, Noaman believes that the city is not yet oversaturated in terms of real estate demand, but property prices have increased significantly. "Today, the average ticket size ranges between ₹3–4 crore, with homes in areas like Whitefield typically priced around ₹2.3–3 crore. As a result, buyers are taking more time to make purchase decisions. In 2025, housing price growth in the city is expected to be in line with or slightly higher than average inflation," he added.
Hindustan Times
06-05-2025
- Business
- Hindustan Times
Credai Bengaluru president advocates for Mumbai-style redevelopment to tackle land challenges
Amid rising land prices and difficulties in acquiring land in Bengaluru's city centre, the city could benefit from redevelopment policies similar to those in Mumbai. Credai is actively collaborating with policymakers and legislators to advocate for a redevelopment framework tailored to the IT capital, Zayd Noaman, president of Credai Bengaluru, said in an interview with "If Mumbai can successfully implement redevelopment, there's no reason Bengaluru can't follow suit," he said. Credai is actively engaging with policymakers and legislators to advocate for a redevelopment framework tailored to Bengaluru. "The process will take time, as it involves creating new laws and building public consensus, said Noaman. Also Read: Bengaluru's property registrations dip 21% amid E-khata implementation woes "Redevelopment can be a game-changer. Like Mumbai, Bengaluru has many 30–50-year-old buildings that can be redeveloped to unlock valuable land. This benefits not only developers and buyers but also the government by generating significant revenue," Noaman said. Most of the developable land in Bengaluru's city centre is either saturated or extremely expensive. 'Residential development here is challenging due to high land costs, and going forward, we expect more commercial or office projects in these areas,' he said. For residential projects in prime zones to make economic sense, Noaman said the development has to be of a special grade to justify the rent or sale price. "But if we don't begin now, we'll miss the opportunity for years to come. Our view is that if a city like Mumbai can implement redevelopment successfully, there is no reason Bengaluru can't follow suit," Noaman said. Also Read: Bengaluru's municipal corporation achieves 88% of property tax revenue target, issues 2.25 lakh e-Khatas Noaman said that currently, CREDAI has over 230 members in the Bengaluru chapter, and all stakeholders are actively investing in platforms and technologies that improve transparency and accessibility. "We're working to streamline land records, encourage blockchain adoption, and improve processes like e-Khata and title verification. Our goal is to promote sustainable, organised development—unplanned growth stresses urban infrastructure and hampers livability," he said. Noaman said that Credai Bengaluru is collaborating with the city's local municipal corporation, Bruhat Bengaluru Mahanagara Palike (BBMP), to streamline the e-khata system, particularly for large developers who need to process bulk applications. "This process goes beyond individual plot owners—it's about ensuring the timely issuance of e-khatas so that they can be seamlessly transferred to homebuyers during registration. To make this possible, we're closely collaborating with government departments to streamline the process. Our focus is also on simplifying RTC (Record of Rights, Tenancy, and Crops) and mutation procedures. Digitising these records will bring greater transparency and efficiency to the revenue system," he said. RTC is an official document that provides details about land ownership and tenancy. Noaman said that, being a complex undertaking, there will be disruptions in the beginning; however, the e-khata system is seeing steady progress. Noaman said that Credai Bengaluru is in discussions with the Bangalore Water Supply and Sewerage Board (BWSSB) to improve water usage efficiency during construction and in residential societies. "One of our proposals involves installing digital water meters in every apartment to help residents monitor their consumption. We also emphasize flood-resilient planning—developments must respect buffer zones and maintain stormwater drains. For example, Prestige has been working on upgrading the nalas to enhance water flow and reduce flood risk," he said. Speaking about real estate potential in the city, he pointed out that Bengaluru is a radial city with ample agricultural land in the peripheries. "While central areas are saturated with limited and expensive land parcels, outer zones still offer opportunities for large-scale development, provided infrastructure is in place. We need better metro and road connectivity to make these regions more livable," he said.
