Rustomjee to focus on homes with Rs 1-7 crore price tag in Mumbai, says Boman Irani

Mumbai real estate update: "A lot of national players are looking at finding a foothold and some of them are already here (MMR) in a big way. Definitely, NCR continues to amaze and there are certain developers that are doing a great job out there. But as of now, I can be quite honest and tell you, while we watch all markets, we are very happy with the MMR market," said Boman Irani MD& Chairman of Rustomjee Group

Listed real estate developer Keystone Realtors, also known as Rustomjee Group, plans to focus on the construction of homes in the range of Rs 1 crore to Rs 7 crore.  The group aims to become a dominant player in the redevelopment of old buildings in Mumbai and has no plans to foray outside the Mumbai Metropolitan Region (MMR).

The company can easily keep working in the MMR market for the next five to six years, Boman Irani, Chairman and Managing Director of Keystone Realtors said during the company's earnings call for Q3FY24.

"If you see what we do with the redevelopment, we have already charted our course as to the kind of project that we want to be in. Now, in the affordable, there is no redevelopment that we do. Those are usually green fields. But in the mid-mass and aspirational is where we are looking at maximum growth in the MMR region," said Irani.

"Just to give you an idea, Rs 1 to Rs 3 crores is considered mid-mass and Rs 3 crores and up to Rs 7 crores is considered aspirational apartments. We continue to increase our penetration in these kinds of locations which will allow us to provide our consumers with apartments in these price ranges," Irani added.

Plans for outside Mumbai:

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Mehul R Thakkar

Special Correspondent|Moneycontrol

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On the question of whether the company may want to explore the National Capital Region (NCR) real estate market, the company said it makes more sense for it to continue expanding its reach, ability, and growth in the MMR market.

Also read: Mumbai real estate: DLF's first project may have apartments in Rs 5.5 crore to Rs 7.5 crore range

"A lot of national players are looking at finding a foothold and some of them are already here (MMR) in a big way. Definitely, NCR continues to amaze and there are certain developers that are doing a great job out there. But as of now, I can be quite honest and tell you, while we watch all markets, we are very happy with the MMR market and we'll continue to grow our developments out here, whether it be various types of development, whether it be, you know, various sizes and rates at which we sell," Irani added in the call.

Irani added that the group can keep working in the MMR market for the next five to six years, “eyes closed” and be in the leadership position.

Also read: Kolte Patil Developers to focus on unit price of Rs 1.5 crore to Rs 3.5 crore in Mumbai, to enter new micro-markets of Pune

Q3FY24 performance:

The company in its Q3FY24 reported pre-sales figure of Rs 616 crores. For the first nine months of FY24, it reported a cumulative pre-sales of Rs 1,423 crores as compared to Rs 1,131 crores for the same period last year, a 26 percent growth year-on-year.

The company, in the current financial year, has launched four projects with a GDV (gross development value) of Rs 2,238 crores. In the company’s annual report for 2022-23, the company had said that it has 22 projects in the pipeline with a potential 37 million sq ft of saleable area with GDV of Rs 35,000 crore.