Prestige targets mid-income homes amid luxury boom

Bengaluru: Luxury housing has continued its sales run in an upbeat real estate sector, but high sales volumes will come from mid-income housing projects, a top Prestige Group executive said.

To balance its portfolio with projects across price segments, Bengaluru-based Prestige plans to build more relatively affordable homes to cater to a wider customer base. Even in a pricey market such as the Mumbai Metropolitan Region (MMR), the developer with a multi-city footprint is looking for land in Thane and Navi Mumbai to develop mid-income projects.

In 2025-26, Prestige aims to clock around ₹27,000 crore of residential sales, on the back of strong housing demand and a large launch pipeline. It did ₹17,023 crore of sales in FY25.

In the April-June quarter, among the top listed developers, Prestige reported the highest sales at ₹12,126 crore, driven by high-ticket project launches and a strong performance in the National Capital Region (NCR).

“High-value projects have niche buyers. We have launched luxury projects such as Nautilus in Mumbai this year, which has sold very well. But I believe it is mid-income housing projects that bring in high sales volumes,” Irfan Razack, chairman and managing director, Prestige Group, said in an interview. “We have a significant launch pipeline, with a good mix of products for different kinds of buyers.”

In the October-December quarter, the company has lined up a large project launch in suburban Mumbai's Dahisar area. The project will have small-sized apartments that can sell at ₹1.7-1.8 crore.

“We will target a customer segment that wants a lower price range product. In Mumbai, where approval costs are high and the way it is priced, it is tough to build and sell anything below that,” Razack said.

Not just in Mumbai, Prestige plans to launch smaller and more affordable homes in its home turf, Bengaluru. At the Prestige Raintree Park project, where it has previously sold ₹4-5 crore homes, Prestige will launch ₹1.5-2.5 crore units because there is high demand for smaller-ticket-size apartments.

For the first time, Prestige has also launched back-to-back multiple plotted projects with a combined gross development value (GDV) of over ₹3,500 crore, spanning100-150 acres.

“There is very good demand for plots, and people want to buy plots for investment as well as to build their homes on them. We have plots of smaller and large dimensions. We are also looking at more plotted project opportunities in Bengaluru, Chennai and Hyderabad,” Razack said.

The road forward

India's real estate sector is in its fifth year of good sales momentum and strong launches.

Home sales across the top seven cities dipped 9% in the July-September quarter of 2025 compared to a year ago, even as overall sales value rose 14% on demand from the premium segment, data from Anarock Property Consultants showed. However, the growth in property prices may be moderating.

“A lot of inventory is getting generated. When the going is good, everyone wants to join the party. But not everyone who launches will succeed or sell at the same velocity,” Razack said.

Higher input, labour and construction costs, along with escalating land prices, have pushed property prices up. "I don't think prices will go up too much more after this," he said.

While sales and launches have both been robust, given that the property markets are on a high, execution and delivery will be key.

“Customer confidence doesn't come with one project. We choose our locations wisely. We plan our projects right, price them well and work hard to see we deliver on the committed deadlines,” Razack said. “We have been doing this for 40 years, and that is why buyers have the confidence.”

Along with mid-income projects, Prestige is also gearing up to launch one of its biggest projects in Mumbai's upmarket Worli locality. The 17-acre Jijamata Nagar slum redevelopment project, in partnership with Valor Estate Ltd (former DB Realty), will be a mixed-use development with a Waldorf Astoria hotel and branded residences, a Hilton hotel, apartments, retail and office.

“This will probably be our next luxury launch in Mumbai. The project will be named The Prestige Place, which we will use as a sub-brand for our mixed-use projects,” Razack said.