Prestige Group Anticipates Rise in Mid-Income Home Prices
Prestige Group, a leading real estate developer, expects residential property prices to increase in FY26, with mid-market homes seeing a 5-7% hike. The company is also launching new projects in major cities.
Real EstateProperty PricesPrestige GroupMidincome HomesProject LaunchesReal Estate MumbaiJun 16, 2025
Irfan Razack, Chairman and Managing Director of Prestige Group, highlighted that the company is facing the challenge of balancing margin maintenance and affordability. “We do not want the price to run away very fast,” Razack said. He noted that rising land and construction costs are the primary drivers of the price increase.
Prestige has had a strong start to the year, with the successful launch of Prestige City Indirapuram in NCR. Out of the 3,400 units launched, approximately 2,800 to 2,900 have been sold, generating over ₹7,000 crore in sales. “This quarter has been one of the strongest the company has ever had,” Razack added.
The company is expanding its project portfolio with new launches in major cities. These include Prestige Gardenia Estate in Bengaluru and the upcoming Prestige Pallavaram Gardens in Chennai. In addition to residential projects, Prestige is also making significant strides in the hospitality sector. The company has filed for an initial public offering (IPO) of its hospitality arm, which is awaiting approval from the Securities and Exchange Board of India (SEBI). The IPO, expected to be launched this fiscal year, aims to raise over ₹3,500 crore. “The whole objective is to clean up the entire debt in the hospitality books and create room for further growth,” Razack explained.
Key hospitality assets include the under-construction Delhi Aerocity Hotel project, which will house the St. Regis, Marriott Marquis, and a convention center. In Mumbai, Prestige has recently completed three developments: Jasdan Classic (now ready for handover), Siesta Tower in Mulund, and Turf Tower in Mahalaxmi. Construction has also begun on the Pali Hill project, with about 70% of its inventory already sold.
Razack emphasized the strong demand across markets. “There are people who are ready, willing, and able to buy and invest - and that gives us the confidence,” he said. Despite the market challenges, the company has a current market capitalization of ₹72,685.73 crore, although its shares have lost more than 12% over the last year.
Prestige Group remains committed to delivering quality projects and ensuring that homes remain within reach for the mid-income segment. The company's strategic approach and robust project pipeline position it well for continued growth and success in the coming years.
Frequently Asked Questions
What is the expected increase in mid-market home prices according to Prestige Group?
Prestige Group expects a 5-7% increase in mid-market home prices in FY26.
What are the primary drivers of the price increase?
Rising land and construction costs are the primary drivers of the price increase.
What major project has Prestige launched in NCR?
Prestige has launched Prestige City Indirapuram in NCR, with about 2,800 to 2,900 units sold out of 3,400 launched.
What is Prestige's strategy for the hospitality sector?
Prestige has filed for an IPO of its hospitality arm to raise over ₹3,500 crore, aiming to clean up debt and create room for further growth.
What are the key hospitality assets under construction by Prestige?
The key hospitality assets include the under-construction Delhi Aerocity Hotel project, which will house St. Regis, Marriott Marquis, and a convention center.
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