This Bengaluru based real estate developer eyes 35% revenue from Mumbai and Pune over 2-3 years

Real estate developer Puravankara on Friday reiterated its intent to expand its presence in the western markets by focusing on more projects in Maharashtra’s Mumbai and Pune.

Abhishek Kapoor, CEO of the Bengaluru headquartered firm, told CNBC-TV18 that over the next two to three years, his company wants 30-35 percent of the sales to come from the western markets. “Over the next few years, the target is that out of Bangalore and beyond the Bangalore market, we will get more than 50 percent of our revenues. Mumbai and Pune will definitely contribute possibly one of the largest streams,” he added.

Speaking about the company’s projects in Mumbai, he said it's a mix of redevelopment, society redevelopment and brownfield projects that the firm is evaluating currently. The firm will be consistent in its effort to scale up its and has even set up a team focused on developing both Mumbai and Pune markets.

Earlier in November, Kapoor said Puravankara has projects in Mumbai — in Chembur and Shil Phata (Dombivli). “We have built a strong team over there and as we go along, we will participate a lot more in the Mumbai and Pune markets,” he had said.

He noted that the first half of the 2022-23 fiscal was very encouraging and demand continues to sustain with an uptick and typically the festive season, December and March quarter are the quarters that do the best i.e the second half of the year. Also, in the first three quarters of the calendar year, Puravankara has already crossed 2014 sales in terms of the number of units as well as value, he added.

Kapoor also said the conversions of new launches are much higher, anywhere between 20 percent and 30 percent. But if it is a sustenance project, it will be anywhere between 7.5-8 percent going up to 11 percent. Therefore, it depends on the project, location and the price point, etc., he explained.

Speaking about price rise, he said in the last two quarters, there has been an overall appreciation between six and eight percent. “A lot of price increase, which was on the behest of increasing commodity prices, is kind of out of the way because we are seeing stability in the commodity prices,” he added.

Reflecting on the proceeds of an alternative investment fund (AIF), he said Rs 700 crore has been received from it which will be deployed in a plotted project in Chennai. Only Rs 100 crore has been deployed so far and there would be more deployment around January and March.

“We have a pipeline of projects we intend to deploy the first raise by March to May. And all of this is focused on provident and plotted development, as the turnaround is very quick on these projects,” he added.