Mumbai-based real estate developer Dynamix Group to invest Rs 350 crore on residential projects

Dynamix Group plans to invest close to Rs 350 crore in the next fiscal. The Mumbai-based real estate developer also plans to launch two to three new projects in Goregaon, Malad and Kandivali, subject to receiving approvals from the authorities, Jay Goenka, director, Dynamix Group, told Moneycontrol. The company has previously developed and delivered over 3 crore sq ft of residential projects across Mumbai, Thane and Goa.

“We have four ongoing projects for which we intend spending close to Rs 100 crore to Rs 125 crore in the last quarter of FY2021. For the next fiscal, we are planning to launch two or three projects, depending on approvals. We are expecting to spend close to Rs 350 crore on these new projects and our currently ongoing projects,” he said.

This year the company plans to deliver around 75 units in its Aldeia De Goa project in Goa, which is spread across 143 acres. It has launched close to 1100 units between last and this fiscal, which are currently under construction, and would be ready for possession by FY 2023-2024.

The Goa project is a mix of plots, villas and apartments. The real estate company has so far delivered 250 apartments in the entire layout along with numerous plots and villas.

The company has been witnessing a year-on-year consistent growth since 2011 and was targeting to reach a sales value of Rs. 700 to Rs. 900 crore in FY2021, but the prevailing situation of COVID-19 postponed the company's plans. Despite the pandemic, it managed to launch a project in Dahisar with units in the price range of Rs 60 lakh to Rs 1.2 crore. The company has so far invested Rs 105 crores in this project, he said.

About the challenges the company faced during the lockdown, Goenka points out that “All projects came to a standstill during the lockdown. March to April were quiet in terms of construction work on the project sites as migrant labourers returned home. Things returned to pre-COVID levels by the month of October 2020.”

The company launched the first phase of a project Dahisar called Avanya in October 2020. The first phase included 380 units priced between Rs 60 lakh to Rs 1.2 crore depending on the size of the unit. "We have sold around 340 units out of these," he said.

During COVID-19, there has been a trend towards more serious home ownership. “There is a renewed perspective on hard asset ownership on account of work-from-home, lower interest rates for borrowers of home loans and the government’s stimulus with regard to stamp duty. All these factors have profoundly pushed the decision towards home ownership,” said Goenka.

Another trend observed during the pandemic has been that of upgrades. Many homebuyers have looked at upgrading to bigger homes in higher quality developments.

“With affordability improving, buyers are able to buy into slightly larger units. There has also been a flight towards quality developments,” he said.

In fact, a vast majority of buyers in the company’s recent launches seem to be first-time homebuyers and as many as 20-25% are upgrade buyers, especially those from nearby areas such as Malad and Goregaon.

“Many upgrade buyers consist of those moving out of older buildings that do not have amenities,” he said.

Due to the lockdown, the company, like other builders, has been granted a six-month extension in terms of RERA timelines. However, it is hopeful that it will complete projects before the deadline.

“We don’t believe we will need the entire six-month extension, assuming that work may proceed unabated and the impact of the pandemic is behind us. We are keen on pushing work as quickly as possible and delivering these projects as soon as possible.” he added.