As the home market shifts toward reputable developers, real estate company Prestige Estates Projects is targeting to sell properties for at least Rs 12,000 crore this fiscal year, an increase of 16 percent yearly.
Prestige Estates Projects Ltd. has established a significant foothold in South India and just entered the Mumbai market. The company’s sales bookings reached an all-time high of Rs 10,382.2 crore in the most recent fiscal year, 2021–22, a 90 percent increase.
Irfan Razack, the CMD of Prestige Estates, responded to an analyst’s question on whether the business expected to make a minimum of Rs 12,000 crore in sales in FY23. “We are looking at it as the absolute minimum. There is plenty more that we are considering.”
“The goals and goals are there; it just depends on when certain initiatives will receive permission. Ideally, we’ll surpass that, “According to a transcript of the analyst call posted on the company’s website, Razack stated.
According to Prestige Estates CEO Venkat Narayana, Bengaluru, the company’s primary real estate property in Mumbai is expected to contribute over Rs 8,500 crore to its total sales bookings this fiscal year. The remainder will come from other places like Hyderabad and Mumbai.
In the first quarter of the current fiscal year, Prestige Estates’ sales booking increased by 310 percent annually to Rs 3,012.1 crore. Of this, sales commitments totaling Rs. 750 crores came from Mumbai, its new market.”3.63 million square feet of space were sold. The average price per square foot is Rs 8,500. In the quarter ending in June, we sold 2,560 units. In Q1, it will sell over 28 residences daily, “said Narayana.
Prestige Estates intends to begin construction on several projects totaling around 15 million several in the ensuing quarters of this fiscal year. Additionally, it includes inventories for active projects like 2 BHK flats in Mumbai.
Regarding the demand outlook for the housing segment, Razack said, “I believe despite all the headwinds that we are getting in terms of interest rates, in terms of cost escalations, we still have our heads together, and we have got different ways of mitigating this, and I am sure the momentum will not drop.
The RBI recently raised the repo rate by 140 basis points to curb inflation. To counteract the growth in input costs and boost their profit margin, real estate developers have likewise raised the pricing of flats.
Prestige Estates recently recorded a financial increase of more than four times, or Rs 204.9 crore, in its consolidated net profit for the quarter ending in June. The RBI recently raised the repo rate by 140 basis points to curb inflation. To counteract the growth in input costs and boost their profit margin, real estate developers have likewise raised the pricing of flats.
The company’s CMD said that retail and hotel operations have recovered following the second wave of the COVID-19 epidemic. Prestige Estates also intends to introduce a project to the Noida market this fiscal year. Prestige Estates recently recorded a financial increase of more than four times, or Rs 204.9 crore, in its consolidated net profit for the quarter ending in June.
With 48 active projects across segments and a total developable area of 75 million square feet, the group has completed 271 projects totaling 151 million square feet. Fifty-one projects totaling 84 million square feet are also in various planning stages.
The corporation operates more than 1,300 keys as part of its hotel portfolio. Additionally, the firm has a land bank of more than 375 acres, which may be developed for an additional 27 million square feet of space.