Bengaluru-based real estate developer Puravankara Limited plans to launch 15 million square feet (msf) by this financial year. Additionally, the company has several new project launches across Bengaluru amid the festive season.
"We are across nine Indian cities today and want to scale up operation in all cities. A lot of new launches are expected in the third and fourth quarters. We plan to launch new projects in Bangalore, Chennai, Kochi, Coimbatore, Mumbai and Pune," Abhishek Kapoor, executive director (ED) and chief executive officer (CEO) told Moneycontrol.
Among the launches over 5 msf of development will be done in Purvankara and its affordable housing wing Provident Housing. Around 4 msf of development will be done by Purva Land --- the company's plotted development wing.
33 percent more sales
According to the regulatory filing by the company, Puravankara achieved Rs 793 crore of sales in the second quarter of this year - 33 percent higher than Q2FY22 sales last year. The jump in sales was achieved along with a consistent increase in average price realization. Average prices during Q2FY23 were up by 12 percent when compared with average price realization in Q2FY22. In the first half of the financial year, the company achieved a sale value of Rs 1,306 crore, up 43 percent compared to Rs 910 Crore in H1FY22.
Kapoor said, "Currently, there is a lot of buoyancy in the Indian economy. I assume it will continue for the next 12 months. We are looking forward to more sales this festive season. The big shift that happened in the Indian economy is structural economic policy changes over the last few years. A lot of capital investments have happened."
Plans for Bengaluru
Puravankara has received Karnataka RERA (KRERA) approval for three projects in Bengaluru. The next batch of approvals will come for Tamil Nadu and one more in Mumbai.
Kapoor said, "In Bangalore, we are looking at the southern, northern and eastern parts of the city. The development will be in the luxury segment, affordable housing and plotted development. However, over 60 percent of the launches are in Bengaluru."
Among the upcoming launches in Bengaluru will be Purva Park Hill on Kanakapura Road, Purva Celestial in Bengaluru north, and Purva Meraki in HSR Layout. Additionally, the company also plans to launch projects in Chennai and Coimbatore.
"In the next two quarters, as a brand, we will be much stronger, especially with new launches. We have raised an Alternative Investment Fund (AIF) for a plotted development in Chennai. We are also in talks for capital raise for Provident Housing and our commercial platform. In the next two quarters, we plan for substantial development and acquisition of more projects," Kapoor added.
To date, Puravankara has done, 56.95 msf of land banking across India. For Purva Land, the company has seven projects across three cities cumulating up to 5 msf. In Bengaluru, the company has Purva Zenium and Provident Park Square currently ongoing. Purva Aspire in Pune and Provident Kenworth in Hyderabad are still under construction.
More commercial growth
Puravankara has launched an A-grade commercial project on Kanakapura Road. The 1,000 square feet project is currently under construction. Kapoor said, "We are in the process of negotiating the office spaces for the project. Additionally, we will launch 2.1 msf in northern Bengaluru. Currently, the real estate sector in Bengaluru is booming because of the airport and new residential supplies. We are also looking at platform transactions to add more commercial projects in Bengaluru, Pune and Mumbai within the next 12 months."
Among the upcoming commercial projects, the company has Puravankara Business Park in Bengaluru and Mundhwa in Pune.
To date, Puravankara has completed 77 residential projects and commercial projects, spanning 43.65 msf, primarily across southern and western India.
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