Puravankara wants to grab a bigger slice of Mumbai’s ₹3 lakh crore redevelopment pie

Sales value in the third quarter this year was up 56% year-on-year (YoY) at ₹1,241 crore. Sales volume rose 60% to 1.63 million square foot (msf) from 1.02msf last year. Average price realisation declined 2% to ₹7,610 per square feet in Q3FY24 from last year. 

Kapoor also outlined his wish list from the upcoming Budget 2024, particularly in the affordable housing segment.

He believes it is important for the government to revise the definition of affordability in response to rising income levels. "If you look at the definition, and if you look at the tax exemptions, which is almost at ₹8 lakh per annum salary, literally you don't pay any taxes with some investments...I am sure they want to take another step in that direction and increase it because of the cost of living...now, with that a household income would be anywhere between say ₹16 to 17 lakh, which is typically tax free. If you look at that number, easily your affordable housing bracket is at about ₹75 to 80 lakh, because that's the affordability that they will have. So, the definition clearly has to change," he explained.

He also touched upon the challenges of high construction costs due to goods and services tax (GST), stressing the need for tax exemptions or reductions to make construction feasible. Finally, he pointed out the high costs of interest and capital in affordable housing, highlighting the need for more supportive financial measures to align with the Prime Minister's vision of housing for all and its role in capital formation, similar to infrastructure.

Puravankara shares have gained nearly 183% over the past year. The company's market capitalisation is around ₹5,900 crore.