Real estate developer Concorde Group plans to develop 4.7 million square feet (msf) of property in Bengaluru with revenue potential of Rs 900 crore over the next two years.
“This year, our revenue target is about Rs 400 crore and Rs 500 crore for FY25. And we want to bring in 2 msf of inventories every year in Bengaluru,” chairman BS Nesara told Moneycontrol.
The planned launches include 2.5 msf of apartments, 1.2 msf of villas and 1 msf of commercial space and plots. Concorde received advances of Rs 300 crore and clocked revenue of Rs 272 crore in FY23.
"We want to invest Rs 1,200 crore over the next two years in Bengaluru. This will be partly equity, with the rest from customer advances. Additionally, about Rs 700 crore have already been invested for ongoing projects, which will take about three years,” Nesara said.
Residential pipeline
The company plans to launch about 1.6 msf across three residential projects in this financial year. About 600 apartments covering 700,000 square feet will be launched in the Yelahanka area north of Bengaluru in October and another 550,000 sq ft of residential property close to Airport Road for which the company did not reveal the launch date. In November, the company plans to launch a stressed, mixed-development, greenfield asset of about 250,000 sq. ft taken over from an insolvent company. A luxury apartment project near Old Madras Road, with 300,000 sq. ft of space and costing Rs 1 crore-Rs 1.5 crore per unit, is also in the pipeline.
The starting price of these upcoming apartments will be Rs 55 lakh and the smallest unit will have 800 sq. ft of carpet area.
The company recently launched 22 acres of plots in Malur, about 25 km from Bengaluru, and 24 acres of land with about 250 plots is set to be launched in three months. The cost of the plots will range from Rs 18 lakh to Rs 45 lakh.
Nesara said the company is launching 1.2 msf of villas next year. This will include 600 premium villas in south Bengaluru spread over 30 acres and priced from Rs 1 crore to Rs 1.7 crore. The average carpet area is 1,750-2,500 sq. ft.
He said Concorde will take over a stressed project in the central business district with over 550,000 sq. ft of space.
“We are pursuing one more project in Bengaluru. However, nothing concrete has transpired yet. We have signed another 600,000 sq. ft greenfield apartment project in south Bengaluru's Kanakapura Road," Nesara added.
Developers understocked
Nesara said with the boost in demand for luxury housing after the pandemic, most developers in Bengaluru don’t have enough homes costing Rs 1.5 crore to Rs 2 crore.
"In general, inventory holding has decreased from about 18-24 months in Q2 of last year to 15 months this year," he said. This has bought fierce competition among homebuyers.
Nesara said with more apartments set to be completed within two years, the demand-supply mismatch is set to ease
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