Top realtors want a piece of Mumbai property market

INCREASING DEMAND FOR LUXE HOUSING ACCOMMODATIVE STATE POLICIES DECADAL-LOW HOME LOAN RATES

Some of the country’s largest listed real estate developers — DLF, Prestige Estates, and Puravankara — are foraying into the ~50,000-crore residential property market of Mumbai, where home prices are among the highest in the world.

All of them are set to launch residential projects in the financial capital of the country, where the market is dominated by players such as Runwal, Lodha, and Oberoi Realty, among others.

Leading the race is Prestige, which has lined up 6 million square feet (msf) of new launches in the city across Mulund and Byculla in the third quarter of this financial year (2021-22). The company is in the final stage of getting approvals.

Prestige is planning a project in

Mulund after it acquired the bankrupt real estate company, Aristo, through a resolution plan in the corporate insolvency resolution process.

DLF, the largest developer in the country, is also finalising plans to launch a high-end residential project in the Tulsiwadi area of Mumbai.

The plot has the potential to house 1 msf of residential space. “We are looking to monetise Tulsiwadi and we feel now is the right time to take it to the market,” the company’s management said recently in an analyst call.

According to sources, DLF could tie up with local players to launch the project by the end of the year. The company bought a 17-acre mill land in Worli for ~703 crore from the National Textile Corporation in 2005, but later sold it for ~2,700 crore to Lodha Group in 2012. DLF’S initial plan was to build a high-end residential project on the plot. Subsequently, it decided to build an upmarket mall-centric commercial project there, but later it sold the plot to Lodha Group. Puravankara is another big-ticket player returning to the Mumbai market after three decades. The Bengaluru-based firm recently launched Purva Clermont, a project in the Chembur area, which is part of its ultra-luxury Worldhome Collection.

Ashish R Puravankara, MD, Puravankara, said it has made significant investments, with an expected top-line revenue of ~800-900 crore. Puravankara’s Mumbai project will see four towers, with 233 residential units and one tower of 79 commercial units.

The entry of DLF, Prestige et al into the Mumbai real estate arena comes at a time when existing players, such as Godrej Properties and Oberoi Realty, have been scaling up their operations in the city. Not happy with its sales performance, Godrej Realty is planning to launch a slew of premium and mid-income housing projects in Mumbai.