For Rs 1,700 crore, Century Real Estate would build 4.5 million sq.ft. of residential space in Bengaluru

By Bricksnwall | 2024-01-18

For Rs 1,700 crore, Century Real Estate would build 4.5 million sq.ft. of residential space in Bengaluru

According to the corporation, these advancements will result in the creation of a pipeline valued at Rs 5,000 crore.

With an investment of Rs 1,700 crore, Bengaluru-based real estate developer Century Real Estate intends to create roughly 4.5 million square feet (msf) of residential space in its home city by FY25. The managing director of the company, Ravindra Pai, told Moneycontrol that this will establish a pipeline worth Rs 5,000 crore.

In just the first half of the current fiscal year, we exceeded our FY23 sales figures, he said, adding that Century Real Estate is slated to introduce six new projects in FY25."

In the city, there are currently plans for 2.1 msf of mixed-use complexes, 5.48 msf of apartments, and 0.7 msf of planned construction.

The company intends to develop one million square feet of opulent residential complexes in the prestigious Indiranagar neighborhood. There will be roughly 300 apartments there, each costing more than Rs 500 crore. In addition, 4.2 million square feet of mid-segment flats are proposed in Yelahanka, North Bengaluru.

In East Bengaluru, a 2.1 million square foot mixed-use complex with residential and retail spaces is set to rise.

"We are collaborating on a substantial commercial development near Hebbal with Prestige, a peer company situated in Bengaluru.

 That amounts to almost 2.5 million square feet. Another project with Godrej (Properties), which has its headquarters in Mumbai, is roughly 2.2 million square feet. We have already provided one million square feet. We have completed around 6 million square feet (sq ft) in the past year, including both commercial and residential buildings," Pai stated.

The company stated that it is concentrating more on the mid-market category for FY25. According to Pai, the luxury market is likewise highly regional.

"There must already be a developed community and sufficient infrastructure for the construction of a premium residential building. Thus, the central business district (CBD) will be the luxury market for our projects. But we observe strong demand in the aspirational category in other regions," he continued.

The company stated that one of its upcoming projects is a 25-acre project in Devanahalli, North Bengaluru, with roughly 350 plots priced between Rs 40 lakh and Rs 50 lakh ? each measuring between 1200 and 2400 sq ft.

More specifically, plotted development is gaining popularity. Land is in high demand, and people don't mind living a little bit outside the cities. Plots also enable a person to live in a more integrated community while creating the kind of house they choose, according to Pai.

He continued by saying that because of the high returns, plots are also increasing. Plotted developments have yielded returns ranging from 13 to 21 percent annually over the last three years, according to Pai. He also said that demand and prices have increased by at least 30 percent in recent years.

Pai did, however, note that one major issue facing developers is still the rising cost of land. The difficulty lies in obtaining a passably good plot of land. We own the land that we are now developing," he declared.

About 2.5 million square feet of commercial space are now being developed in Bengaluru by the company.

One million square feet or so have been finished. The combined development of 2.5 million square feet with Prestige is nearing final approval. And we anticipate being ready to do that within the next sixty days," Pai stated.

The business is considering another 7 million square feet of commercial, retail and residential space in northern Bengaluru business parks. According to Pai, work will start the following year and take five to seven years to finish.

Source: MoneyControl