Century Real Estate to develop 4.5 million sq ft of residential space in Bengaluru for Rs 1,700 crore

Ravindra Pai, Managing Director of Century Real Estate

Bengaluru-based real estate developer Century Real Estate plans to develop about 4.5 million sq ft (msf) of residential space in its home city by FY25, with an investment of Rs 1,700 crore. This will create a pipeline worth Rs 5,000 crore, Ravindra Pai, the company’s managing director, told Moneycontrol.

"We surpassed our FY23 sales numbers in just the first six months of the current financial year,” he said, adding, “Century Real Estate is set to launch six new projects in FY25."

The current proposals include 0.7 msf of plotted development, 3.8 msf of apartments, including 2.1 msf of mixed-use developments in the city.

As part of its residential properties, the company plans 1 million sq ft of luxury projects in the prime Indiranagar area. It will have about 300 apartments with a price tag upwards of Rs 5 crore each. Additionally, 0.5 msf of mid-segment apartments are planned in North Bengaluru's Yelahanka area.

The 2.1 msf of mixed-use development will come up in East Bengaluru, with residential and retail properties.

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"We are doing one large commercial development with (Bengaluru-based peer) Prestige near Hebbal. That itself is about 2.5 million sq ft. Another project with (Mumbai-headquartered) Godrej (Properties) is about 2.2 million sq ft. We have delivered 1 million sq ft already. Including the commercial and residential projects, we have touched about 6 million (sq ft) in the last year," Pai said.

For FY25, the company said, it is more focused on the mid-market segment. Pai said the luxury segment is also very location-specific.

"For a luxury residential space to come up, there already has to be ready infrastructure and a developed community. So our projects in CBD (central business district) will be in the luxury space. However, in other parts, we see high demand in the aspirational category," he added.

Plotted development seeing uptick

Among the forthcoming launches, the company said, it is developing a 25-acre project in North Bengaluru's Devanahalli, with about 350 plots, priced upwards of Rs 57 lakh --- in the size of 1200-2400 sq ft.

"Specifically, the interest in plotted development is greater. People want to buy land, people don't mind going slightly away from the city. Plots also help a person build the kind of home they want while being a part of a larger community," Pai said.

He added that plots are also seeing an uptick because of the great returns. Over the last three years, plotted developments have delivered returns ranging from 13-21 percent per annum, Pai said, adding that demand and prices have gone up by at least 30 percent over the last few years.

However, Pai added that the rising cost of land continues to remain a key challenge for developers. “The challenge is to get a reasonably decent piece of land. The land that we are developing now is our own land,” he said.

Looking to develop business parks

Currently, the company has about 2.5 msf of commercial spaces under development in Bengaluru.

"About 1 million square feet have been completed. The 2.5 million square feet joint development with Prestige is in the final stages of approval. And we hope that in the next 60 days, we should be able to launch that," Pai said.

The company is looking at another 7 msf of business parks in northern Bengaluru with office, residential and retail spaces. Pai said construction will commence next year and will take five to seven years to complete.