Bengaluru-based real estate developer MS Ramaiah Developers and Builders (MSRDB) plans to invest about Rs 1,100 crore over two years across real estate sectors in Karnataka, Goa, and Andhra Pradesh. It also plans to develop 200 acres of residential townships across Karnataka.
Speaking to Moneycontrol, Raksha Ramaiah, Director, MSRDB, told Moneycontrol, "For retail and commercial development, we have identified land parcels in Goa and Andhra Pradesh. Both will be launched in the second quarter of 2023."
More townships down the line
In 2008, the company launched the MS Ramaiah Royal City in Mysuru, sprawled across 60 acres.
According to a 2019 TechCrunch report, the number of people in India living in gated townships is increasing annually at a rate of 13 percent. Analysis by Redseer predicts that by 2026, India will have the second-highest number of gated communities worldwide. By 2031, 32 million households will live in gated townships, according to the report.
Ramaiah said that, today, the scope in standalone projects is much less compared to townships. "With workplaces and hypermarkets located inside townships, people do not need to commute far. Especially for senior citizens, it is comfortable living with a lot of open, green spaces."
In Karnataka, MSRDB currently has two integrated townships in the pipeline. There’s a 50-acre residential, plotted township in Mysuru in the works. Due for inauguration by the end of this November, 15 percent of the developed area will be for commercial use, and the rest residential.
"The other township is located in Budihal, in Nelamangala taluka of Bengaluru rural district. Spread across 55 acres, about 25 percent of the developed area will be for commercial use," Ramaiah said .
Another township in Tumkur, in southern Karnataka, called MS Ramaiah Shantiniketan, is almost 85 percent sold. A plotted development, it spans 47 acres, and is fully residential. Additionally, the company has acquired 100 acres of land for a township in Coorg in Karnataka’s Kodagu district.
Expansion to new states
The company has acquired land parcels for commercial and residential projects in Goa and Andhra Pradesh. "For Goa, we have acquired five acres of land for villaments. This will be mid- to high-end housing with a price tag of about Rs 8 crore. It will be launched in the second quarter of 2023," Ramaiah said. ``In north Goa, next to the upcoming airport, we also have a land parcel for two hotels over 25 acres,’’ he added.
In Andhra Pradesh, the company is planning to launch the development of 150 acres of residential and industrial projects by 2023. "Additionally, we will start the development of 650 acres for commercial projects, after we sell out the residential segments," Ramaiah added.
Developing Bengaluru
"We have already invested Rs 1,500 crore across multiple segments in Indian real estate, and we further plan to invest Rs 1,100 crore in the commercial segment over the next 8-12 months. More than 75 percent of the projects will be commercial, including hospitality and retail. We intend to develop 5–8 million square feet (msf) across Karnataka, Goa, and Andhra Pradesh," Ramaiah said.
In Bengaluru, we’re mainly focussing on the north of the city. We have over 1 msf of commercial projects planned for the first quarter of 2023," he added. The development will take place in the Devanahalli and Bengaluru Central Business District (CBD) regions.
He said the company intends to develop over 5 msf of commercial space over 3-5 years in northern Bengaluru, between Hebbal and Devanahalli.
Investing in delayed projects across Bengaluru
Ramiah said the company had already invested about Rs 60 crore in delayed residential and commercial projects across the city. MSRDB plans to invest another Rs 200 crore in delayed projects over the next two years.
"It is risky when you try to raise money in one project and invest the funds in another. However, we maintain our financial discipline and do not invest funds meant for one project in others. That is key to addressing the issue of delayed projects in India," Ramaiah added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
