New Delhi: The real estate arm of Tata Sons Ltd plans to invest Rs300-400 crore during this fiscal to acquire more land and build a pan-India presence, its chief executive officer said.
Tata Housing Development Co. Ltd is executing projects spread over 20 million sq. ft of space. It expects to increase its land bank by adding an additional 8-10 million sq. ft.
“We are now present in all categories of housing. To have a pan-India presence and create more projects, we plan to invest on the land acquisition this year,” said managing director and CEO Brotin Banerjee. Tata Housing, which launched a sub-Rs10 lakh housing project in Boisar near Mumbai last year, recently entered the ultra luxury segment with the launch of its project, Prive, at Lonavala where villa prices start at Rs3 crore and go up to Rs7 crore.
Of the 70 luxury units in the project, the company has been able to sell 25 villas at a rate of Rs6,000 per sq. ft.
The firm plans to launch two more projects in Gurgaon, on the outskirts of New Delhi, in the next five to six months.
In the current fiscal, it has plans to launch eight to 12 residential projects across various categories and cities.
Real estate developers are seeking to tap a revival in housing demand as economic growth accelerates after the downturn, which dampened sales of houses and apartments and depressed prices. Developers are again building so-called super luxury apartments. For instance, Skyline Constructions, a south India-based realty company, recently announced plans to develop a residential project, Skyline Villa Maria. Located in Bangalore, apartments in the project will be priced at Rs12–22 crore.
Data available with various market research firms such as Kinght Frank India and Jones Lang LaSalle-Meghraj suggests that all major metros of the country will witness a surge in such launches.
Bangalore alone will witness the launch of around 400 high-end luxury apartments in the current year itself. These will be priced at between Rs3.5 crore and Rs20 crore each.
There are around 7,000 such apartments to be delivered within a year in Mumbai which will cost not below Rs4.7 crore for a single unit.