Mumbai: Mahindra Lifespace Developers Ltd is in the process of acquiring around 4,000 acres in Chennai and Pune, where it intends to set up two more business parks, a top official said late on Monday.
The company is acquiring around 1,000 acres of land in Chennai and around 3,000 acres in Pune, its managing director and chief executive, Anita Arjundas, told Reuters in an interview.
Arjundas declined to comment on the cost for land acquisition.
A business park is a township with office spaces. The firm, part of the diversified Mahindra Group, specialises in both the residential housing and commercial development segments.
It already has two business parks of about 4,000 acres under its commercial segment. The parks are operated under the brand Mahindra World City, at Chennai and Jaipur.
“Land procurement is underway, so once we are done with a significant part of it, we will start development,” she said.
She did not provide a timeframe for completion of the business parks.
Mahindra Lifespace is also looking to tap the recovering residential housing market by launching new projects in two tier-1 cities, she said, but did not elaborate.
It focuses on the mid market and premium residential customer segments.
It already operates housing projects in Mumbai, National Capital Region (spanning New Delhi and adjoining areas), Pune and Chennai.
Mahindra Lifespace has about 8 million square feet of space for ongoing housing projects and new launches. It has already completed construction in 6 million square feet.
She said real estate prices in Mumbai, India’s financial capital, has recovered faster, while correction in other cities were much slower.
India’s real estate industry, like the sector globally, was hard hit by the 2008 credit crisis after years of booming demand.
Property prices doubled in the two years to 2007, fuelled by interest from foreign investors. But the sharp rise was followed by interest rate rises to calm inflation and the global financial turmoil, pulling down sales by more than half.
“Our understanding is that the market is back to the Jan 2008 levels, back to the peak level. General demand in Mumbai seems to be very good, while NCR seems to be a bit of a mixed bag...,” she said.