Prestige Estates to invest Rs 10,000 cr on development of 62.5 acre project in Ghaziabad

New Delhi: Realty firm Prestige Estates Projects Ltd will invest around Rs 10,000 crore over the next six years to develop a 62.5 acre township at Ghaziabad, Uttar Pradesh as it remains bullish on housing demand in Delhi-NCR market.

On April 29, Bengaluru-based Prestige Group announced its entry into Delhi-NCR's residential market. It is already developing a commercial project at Delhi's Aerocity comprising hotels and office spaces.

"We have entered into Delhi-NCR's housing market with our first project 'Prestige City, Indirapuram'. We want to rewrite the way real estate is done in this region. We do not want to be the biggest but definitely the best developer in the NCR market," Prestige Estates Chairman and Managing Director Irfan Razack told reporters here.

He said the company will focus on quality with timely delivery, which has been a problematic issue in the Delhi-NCR property market.

Razack said the company will develop around 10 million square feet area, comprising 4,041 homes and around 8 lakh square feet shopping mall, in this joint development project. The company will share revenue with the landowner.

In the first phase, the company has launched 3,421 apartments with a total sales potential of over Rs 9,000 crore. The total gross development value of the entire project will touch around Rs 12,000 crore.

Prestige Estate has already sold 1,200 units for over Rs 3,000 crore in the last seven days and is hopeful of selling all 3,421 units over the next few weeks. The company is selling units in a price range of Rs 1.5 crore to Rs 4 crore.

Razack said the demand has been very encouraging so far.

Asked about the investment, Razack said the construction cost alone would be around Rs 8,000 crore.

Along with the other costs including land and approvals, he said the total investment is estimated to touch around Rs 10,000 crore.

Prestige Estates Projects Ltd is India's leading real estate developer, with a legacy of over three decades.

It has delivered over 300 projects across residential, commercial, retail, hospitality, and mixed-use sectors.

Last month, Prestige Estates Projects Ltd reported a fall in sales bookings last fiscal due to delays in approvals to launch its many projects.

The company's sales bookings or pre-sales declined 19 per cent to Rs 17,023 crore in the last fiscal.

Prestige Estates attributed the fall in annual sales booking numbers to lower launches of housing projects due to a lack of approvals from development authorities.

As a result, the company has failed to achieve the annual sales bookings guidance of Rs 24,000 crore.

Sales volume for 2024-25 stood at 12.58 million square feet, down 38 per cent year-on-year. Total units sold stood at 5,919.

The average realisation for apartments, villas, and commercial products rose to Rs 14,113 per square foot, an impressive 36 per cent increase year-on-year. Plot sale realisation increased to Rs 7,167 per square foot, registering a 50 per cent year-on-year growth.