Prestige Estates aims for sales of ₹25,000 crore in FY25
Irfan Razack, the CMD of Prestige Group said real estate is now in flavour and the desire for homes, including upgrades to second homes, has surged.
Bengaluru-based property developer Prestige Estates Projects is targeting sales of nearly ₹25,000 crore in the financial year 2025, a 25% year-on-year growth.
Irfan Razack, Chairman and Managing Director said the real estate cycle is closely tied to the wealth cycle rather than the stock market cycle.
"It's not just about the stock market; it's about the overall positive sentiment in the economy. When people have extra money, they tend to invest, and that investment can be in either the stock market or real estate," he said.
In a regulatory filing on October 6, Prestige Group reported an over two-fold increase in property bookings year-on-year, totaling ₹7,092.6 crore. Razack pointed out that in the first six months of financial year 2024, the company managed to achieve sales of ₹11,007 crore, nearly matching full year FY22 sales of ₹12,931 crore.
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Razack said the desire for homes, including upgrades to second homes, has surged.
Prestige Group aims to cater to a diverse market, focusing on mid-income housing while also offering luxury and premium homes.
According to an HSBC Global Research report on the outlook for the Indian residential market in 2024, the strong demand for residential properties will persist due to factors such as affordability, limited supply, and a robust pipeline of projects.
In November, Prashant Thakur, Regional Director and Head of Research at Anarock Group, also pointed out to CNBC-TV18 that the increase in property prices is, in part, a rebound from seven years of stagnation before the COVID era. During this period, the real estate industry remained stagnant, and property prices showed little growth.
While affordable housing, specifically those priced under ₹40-45 lakhs, continues to face challenges, Thakur pointed out that the primary market activity is observed in the ₹80 lakh to ₹1.5 crore range. This trend is particularly evident in the top seven cities.
Prestige Group currently has a market capitalisation of ₹46,522 crore.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
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