Prestige Group to invest Rs 7,500 crore to develop 16 million sq ft in Mumbai

Realty developer Prestige Group has set its sights on the country’s biggest and most expensive property market with plans to invest over Rs 7,500 crore to develop properties spread over a total 16 million sq ft over the next 4-5 years.

The proposed investment will be deployed across six projects and will comprise of residential, office and hospitality developments in key locations including South Mumbai’s Marine Lines and Mahalaxmi locality, Worli, Bandra, central business district of Bandra-Kurla Complex (BKC) and Mulund suburb of the city.

“With the state recording the highest GST collections in India and contributing to 15% of GST of the overall Indian economy, Mumbai has established itself as the leading commercial hub in India. We look forward to establishing our presence in the western region through Mumbai,” Irfan Razack, CMD, Prestige Group, told ET.

After reporting record pre-sales collection of over Rs 10,000 crores in the financial year 2021-22 through its projects in 12 locations across India, the developer has now started commercial and residential projects in South Mumbai’s Mahalaxmi, Bandra’s Pali Hill, BKC, Yogi Hills of Mulund.

“We have already infused around Rs 3,000 crore in acquisition of projects and alliances formed in Mumbai. Of the total proposed developments, two projects spread over 6.5 million sq ft will be office space developments in Mahalaxmi and BKC, which will also house a five-star category W Hotel,” said Venkata Narayana.

Of its ongoing developments in Mumbai, the developer’s project in Mahalaxmi is spread over 2 acres that will offer 233 supersized premium apartments. The project in Mulund suburb will be a 30-acre development that will house premium residential, commercial and high street retail spaces along with a proposed school and hospital.

Of the total 6 projects in Mumbai, the company has acquired two land parcels--30 acres in Mulund and 2 acres in Mahalaxmi--on outright basis. It has invested over Rs 800 crore for these land acquisitions. Among other Mumbai projects, it has entered into two alliances with DB Realty and one with ABIL, while the project in Pali Hill is a society redevelopment plan.

Prestige Group has completed 268 projects and delivered over 151 million sq ft as on 2021-22 end. The company has around 45 ongoing projects across segments with 65 million sq ft space. It also has additional 70 million sq ft projects under planning apart from some more land banks in its portfolio.

A number of real estate developers from South India have entered the Mumbai property market in the backdrop of robust demand, sales momentum and potential of robust returns.

Mumbai has been setting new benchmarks with property transactions almost every month after the state government announced a limited-window stamp duty reduction in 2020.

The reduced stamp duty had led to a surge in the number of transactions across segments including luxury, mid-income and affordable housing. While the lower stamp duty benefit window period ended in March 2021, the property markets across key cities of Maharashtra are still witnessing robust activity.