Boman Irani, CMD of Rustomjee Group, also known as Keystone Realtors, based in Mumbai, said a few days ago that he is not concerned about new real estate developers from other cities attempting to enter the financial capital’s redevelopment market. Because “they bring with them a healthy competitive spirit,” he prefers to view it as a benefit.
At least six Bengaluru-based real estate developers have increased their footprint in Mumbai throughout the last ten years. Numerous companies, like Puravankara and Prestige Group, located in Bengaluru, have either announced or entered the Mumbai real estate market.
However, what motivates developers to acquire a piece of the Mumbai real estate market? According to real estate specialists, their main goal is to increase and strengthen their presence throughout cities. According to experts, listed real estate developers in these locations have a more pronounced expansion pattern than unlisted or mid-sized realtors.
Puravankara Limited, a Bengaluru-based company, made its debut in the Pune and Mumbai markets in 2017 and 2021, respectively. For a few years, the business has been actively expanding in Pune and Mumbai. In the commercial sector of the Pune and Mumbai markets, the company also hopes to have a substantial portfolio.
As of FY24, Prestige Group, another developer based in Bengaluru, had 37 active projects. According to the company’s investors’ presentation for FY24, seven of these projects are in Mumbai, twenty are in Bengaluru, and the remaining ones are in Hyderabad, Calicut, Mangaluru, Kochi, and Ooty. Three of the 30 projects in the company’s pipeline are located in Mumbai.
The huge margins are of appeal to Southern developers. It is more profitable for these developers to start projects in the financial capital because the minimum pricing for these projects starts at about ₹25,000 per square foot in Mumbai, compared to maybe ₹7,000 to ₹10,000 per square foot back home. A few South Indian developers are considering starting new projects at about ₹70,000 per square foot after launching some for ₹35,000 per square foot a few years ago.
Source: Hindustan Times
