Mumbai: Bengaluru-based Embassy group, which is focused on building commercial office and luxury residences, has diversified into mid-income housing as it plans to tap into the growing middle-class home-buyers and millennials.
Located at Devanahalli at north Bengaluru, the new housing project—Embassy Edge—is part of a larger integrated township Embassy Springs that is being developed at an investment of Rs1,200 crore.
Spread across 288 acres, the township would have a total of around 5,000 housing units, villa plots and other commercial and retail space.
The new project would span across 12 acre comprising more than 800 units. Each apartment would cost between Rs36 lakh and Rs81 lakh.
“Over the years, especially from 2011 onwards, we have largely created luxury residences. The focus has been around creating luxury homes costing from Rs2 crore to Rs80 crore. We are entering into a new segment and this is very different price band to work with," Reeza Sebastian, senior vice-president, residential business, Embassy Group, said over phone.
Marketed as ‘futuristic or smart homes’, Embassy has also tied up with Amazon to integrate each home in the new project with Amazon Echo devices.
Powered by Alexa Voice Services, echo devices are smart speakers that would enable residents to control home appliances, play music, and even order products from Amazon.in by just speaking to Alexa, the company said in a statement.
“The average age of a potential homebuyer is coming down to about 29 years. This also constitutes about 46% of the country’s workforce. So if we have actually keep that trend in mind, we have to start catering to the larger segment. It cannot be only skewed around a luxury portfolio," Sebastian said.
The company is exploring opportunities to launch similar projects within Bengaluru and also outside the city, Sebastian said.
At present, the company is operating and developing a total of around 45 million sq. ft of real estate, of which 15 million sq. ft are in the residential space.
The residential business currently accounts for around 30% of its total revenue, Sebastian said.
Its ongoing luxury projects include Four Seasons Private Residences and Embassy Lake Terraces.
As low-income houses are not fetching enough margins and luxury houses are not finding enough takers, real estate companies are betting on housing projects targeted at middle income earners, where buyers are willing to put up Rs25-50 lakh for a home of their own.
The last one year has seen several other large developers like Shapoorji Pallonji Real Estate, Hiranandani Group and Puravankara Projects Ltd launching mid-income housing projects.