Emaar India Plans Rs 2,000 Crore Investment in Mumbai Region over 6-7 Years
Emaar India, the real estate arm of the UAE-based developer, is set to invest Rs 2,000 crore in the Mumbai region over the next six to seven years. The company is attracted to Mumbai’s robust real estate market, strong talent base, and ongoing infrastruct
Emaar IndiaMumbaiReal EstateInvestmentDevelopmentReal Estate MumbaiOct 21, 2024
Emaar India’s Chief Executive, Kalyan Chakrabarti, stated that the company has no specific reason for staying away from Mumbai for so long. Instead, they are now drawn to the city because it is considered the deepest and strongest real estate market, which is expected to remain vibrant for decades.
The company is well aware of the market realities in the space-constrained city and is open to both society and slum redevelopment projects, as well as new developments. With a planned investment of $1.85 billion (approximately Rs 15,500 crore) in real estate developments across India, capital is not a constraint, thanks to the strong backing of its parent company.
Chakrabarti explained that Emaar is not keen on aggressively pursuing opportunities in the capital markets, including an Initial Public Offering (IPO) or setting up a Real Estate Investment Trust (REIT). The company is more focused on leveraging Mumbai’s strengths, which include a top-tier talent base and a robust global trade connection.
Mumbai offers a great opportunity for real estate developers, especially with the massive infrastructure projects underway, such as the transharbour link and a new airport. Emaar India will continue to cater to the mid-market to luxury segment, with apartment units typically costing over Rs 4 crore.
The Gurugram-headquartered company already has a presence in other Indian cities, including Hyderabad, Indore, and Mohali. Around 85% of its revenues come from the residential segment, while the commercial segment accounts for the remaining 15%. By December, the company will have over 8 million square feet of space under construction, which they aim to deliver within four years.
Emaar’s maiden venture into the Mumbai market is a community of 84 villas in Alibag, a popular weekend getaway for Mumbaikars. The company will invest Rs 400 crore to construct these villas, which will be spread over 25 acres of land. Over 75% of the land in the project, named 'Casa Venero,' will remain free of structures. A three-bedroom villa will cost upwards of Rs 9 crore, while a four-bedroom villa will range up to Rs 16 crore.
Alibag was chosen for its excellent connectivity, thanks to the construction of the transharbour link and the new airport. The company aims to deliver the villas within the next three years, although they have been granted up to five years to complete the project by the real estate regulator.
Frequently Asked Questions
Why is Emaar India investing in the Mumbai region?
Emaar India is investing in the Mumbai region because it considers it the deepest and strongest real estate market with a strong talent base and robust infrastructure developments.
How much is Emaar planning to invest in Mumbai?
Emaar is planning to invest up to Rs 2,000 crore in Mumbai and its surrounding areas over the next six to seven years.
What is Emaar India's maiden project in Mumbai?
Emaar India's maiden project in Mumbai is a community of 84 villas in Alibag, named 'Casa Venero,' which will be spread over 25 acres of land.
What is the cost of the villas in the 'Casa Venero' project?
The cost for a three-bedroom villa in the 'Casa Venero' project will be upwards of Rs 9 crore, while a four-bedroom villa will range up to Rs 16 crore.
How much of Emaar India's revenues come from the residential segment?
Around 85% of Emaar India's revenues come from the residential segment, while the commercial segment accounts for the remaining 15%.
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