Redevelopment will not flood Mumbai housing market: Birla Estates CEO

KT Jithendran, CEO of Birla Estates, said that the redevelopment supply is expected to come in fits and starts

Aditya Birla Real Estate Ltd's subsidiary Birla Estates is in advanced talks to secure multiple redevelopment projects in various parts of Mumbai, but its CEO, KT Jithendran, noted that despite redevelopment picking up pace in the city, the housing market is not expected to be flooded with supply from it, with a major movement in prices also not on the horizon.

"We are also pretty excited (about redevelopment) because the brand plays a very strong equity here. We are in advanced talks with several projects, redevelopment opportunities in South Mumbai, Bandra, Juhu, Khar. And we are quite excited about it, because it gives us a very good platform to express ourselves and do great job in giving some fantastic products. We are working towards it. It takes time and patience, and we are there to solve all issues of the current members," Jithendran said, during the company's post-earnings investor call.

About the potential impact on pricing as a result of supply from the new redevelopment-led supply, Jithendran added, " I think it will not flood the market, and there is a huge deluge of supply. It will come in phases and in spurts. I don't think that's going to really have a big impact on the pricing".

Asked about the relative slow pace of project additions in the ongoing financial year, Jithendran said that the company has a "healthy pipeline" of projects, with additions of a total gross development value of Rs 10,000 crore to Rs 15,000 crore expected by the end of FY26. Birla Estates' current ongoing and planned projects have a revenue potential of around Rs 70,000 crore.

Apart from its planned foray into redevelopment projects, Birla Estates is executing the large Birla Niyaara luxury development in Worli on a legacy land parcel, which has a revenue potential of more than Rs 10,000 crore.

Two towers have been launched, with plans for the third tower at the project being drawn up, Jithendran told investors. He added that the yet-unsold inventory in the first two towers is not impacting plans for the launch of the third tower, due to strong sales being reported in the first two towers.

"We have done very well in Tower 1 and 2. And now, I think it's very important for us to bring fresh inventory into the market. The market is craving for it. And we are working towards launching it. There's a huge demand built up for Tower C...I think we have done more than what we have far beyond our expectations in Tower A and B. Tower A is 95% sold. Tower B is also about 75% sold," he said, during the call.

Launches over the next few months may include its Thane project, on a land parcel formerly owned by Aditya Birla Group firm Hindalco Industries, as well as a project at Manjri, on the south-eastern fringes of Pune.

Jithendran noted that approvals for the Thane project were stuck due to a ruling by the National Green Tribunal on the competent authority for certain environmental clearances. The NGT ruling has now been overturned by the Supreme Court, clearing the path for the Birla Estates' Thane project, now expected to be launched in the January-March quarter of the ongoing financial year.