NEW DELHI: Bengaluru-based property developer Puravankara, which has a significant presence across Southern India, is eyeing major expansion in Mumbai and Pune as it aims the two key western cities to generate 40-50% of its business in the next two years.
“Bengaluru will continue to be our fort and we will increase our presence here. We will also justify the other markets where we have a presence. However, our goal is that 40-50% of our business (value wise) should come from the West (Mumbai and Pune) in the next two years,” Puravankara Group CEO Abhishek Kapoor told this newspaper in an interaction.
Currently, Puravankara has two ongoing projects in Mumbai and four in Pune. The realtor is soon expected to launch two more projects in Mumbai and one in Pune. Kapoor informed that by next quarter they will increase their land bank in the west.
For Purvankara, non-Bengaluru projects at the end of Q1FY24 accounted for 46% of the share of ongoing and 65% of the launch pipeline. West India’s share at 18% in the ongoing project is only second to Bengaluru. The company’s total developable area (ongoing and launch pipeline) stood at little less than 45 million square feet (msft).
Not only Puravankara, but realtors from all over India are trying to make a mark in Mumbai and Pune as there remains unprecedented absorption for residential units in these two cities with higher average realisation. Housing sales across the top 7 cities in India hit a new peak of 1,20,280 units in the July-September quarter, as per the latest Anarock data.
Mumbai recorded sales at 38,500 units, followed by Pune with 22,880 units. The two western cities jointly accounted for 51% of total sales in the quarter with the fastest growth rate. Kapoor said Pune and especially Mumbai has better realization per square feet than other markets and given Puravankara’s strength to deliver large volumes, the group’s overall realization and sales value may witness a big surge by expanding here.
In the first quarter of FY24, the realtor’s average realization per sft stood at Rs 8,277, a growth of 11% year-on-year. The company’s sales volume stood at 1.36 msft, up 97% y-o-y, and its sales value more than doubled annually to Rs 1,126 crore. The company, however, reported a loss of Rs 17 crore in Q1FY24.
Kapoor said that the company will soon bounce back to profitability and the loss reported in the first quarter of FY24 was momentary due to reduced handover during the quarter. The CEO is also hopeful of the robust festive season and is confident of closing the second half of the FY24 at a high.