Prestige Group eyes Rs 16,000 crore of residential sales in FY24

Prestige Lavender Fields project in Bengaluru's Varthur.

The Prestige Group, a Bengaluru-based real estate developer, plans to launch about 18 million square feet (msf) of residential property in FY24 with a sales value of more than Rs 16,000 crore. "The upcoming launches will be taking place in Bengaluru, Hyderabad, Mumbai, Chennai and Kochi,” Venkat K Narayana, chief executive officer, told Moneycontrol. “For the residential segment, we will also be foraying into Delhi-NCR within Q4 of this year or early FY25."

The company plans to develop more than 10 msf in Bengaluru this year, compared with about 8 msf last year, focusing on areas including Whitefield and Varthur in the east and Electronic City in the south.

"More than 70 percent of the upcoming residential launches in Bengaluru will be in the mid-segment with a ticket size of Rs 1.5-2 crore. Currently, we have more than 450 operational villas in Bengaluru and we are looking for some more in the fourth quarter of this year with a ticket size of more than Rs 3 crore," Narayana added.

Strong pipeline

Prestige spent about Rs 1,200 crore on residential construction and Rs 350 crore on office spaces in the first quarter of FY24, the company said on a call with investors on August 9.

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Narayana added that in FY25, residential launches will be upwards of 20 msf with the addition of new places to the portfolio. The company launched 16.46 msf of residential property in FY23.

Prestige plans about 6.64 msf of residential developments in Hyderabad, its third-largest market, after Bengaluru and Mumbai, in FY24. Last month, the company launched its biggest township in Hyderabad with about 5,000 units.

"The average ticket size for apartments in Hyderabad will be Rs 1.8-2.5 crore. Next, we are launching over 4,000 apartments and 1 msf of mall space in the city," Narayana added.

Currently, the company has 174 msf of ongoing or upcoming projects across all segments. Of this, 99 msf is ongoing, with 76 msf in residential, 15 msf in office spaces, and the rest in hospitality and retail.

Prestige plans to launch more than 20 msf of office space in Bengaluru in two to three years. It has already launched four office parks in Bengaluru and one is yet to be launched in east Bengaluru.

"Over the next 3-4 years, we will invest about Rs 5,000 crore in the commercial segment, eyeing a rental income of Rs 3,000 crore," Narayana added.

In Bengaluru, the company is bullish on areas like north Bengaluru, Outer Ring Road and Whitefield for office developments. In Mumbai, it is the Bandra Kurla Complex and Mahalakshmi.

The company has invested about Rs 16,079 crore towards ongoing and upcoming commercial projects. Of the total capex, more than 75 percent has been invested in ongoing projects, Narayana said.

Additionally, the company is looking to launch three malls in Bengaluru within the next financial year.

"We have a total of 8 msf of mall space under construction and yet to be launched across Bengaluru, Chennai and Hyderabad. All of them will be launched within the second quarter of FY25," Narayana added.