Real Estate Developers Gear Up for Major H2 FY25 Launches
Following a slow first half, Indian real estate developers, including major Bengaluru players like Prestige, Puravankara, Sobha, and Brigade, are preparing for a flurry of project launches in the second half of the financial year 2025.
Real EstateProject LaunchesH2 Fy25BengaluruIndian Real EstateReal Estate NewsNov 27, 2024
Prestige Estate Projects has announced plans to introduce developments worth INR 52,000 crore by the end of March next year. These projects span cities like Bengaluru, Chennai, Hyderabad, Goa, and the Delhi-NCR region, covering a total of 53 million square feet (msft). The projected sales bookings value of these launches is estimated at INR 52,114 crore. The second-half launches for Prestige are set to be five times larger than those in H1. Prestige initiated 10 msft across five projects during H1, with a gross development value (GDV) of INR 10,000 crore, of which launches in the second quarter accounted for INR 8,600 crore.
Similarly, Puravankara launched 1.8 msft of developable area during H1, which included new phases in existing projects and a new project. For H2, the company plans to introduce 12.27 msft of new projects and an additional 3.44 msft in ongoing phases. This brings Puravankara's total planned developable area for H2 to 15.7 msft, with an estimated GDV of INR 13,000 crore, a significant increase compared to H1.
Sobha Limited, which reported a profit after tax (PAT) of INR 26.1 crore for the second quarter of FY25, has also outlined a strong pipeline. The company plans to develop 19.29 msft of residential space across 18 projects, with 5.5 msft scheduled for H2. Managing Director Jagadish Nangineni shared that Sobha had launched 3.53 msft across five projects during H1. Brigade Enterprises, which launched 4.35 msft during H1, is preparing to introduce 16 msft in H2.
The sharp increase in H2 launches across the industry is attributed to delays in approvals and disruptions caused by election-related activities that diverted officials to other responsibilities. Irfan Razack, Chairman and Managing Director of Prestige Group, explained during an investor call that these issues had been largely resolved. He expressed confidence that post the elections in Maharashtra, there would be no further hurdles affecting project approvals.
In conclusion, the Indian real estate sector is poised for a strong recovery in H2 FY25, with major players planning large-scale launches to meet pent-up demand. Developers remain optimistic about smoother approval processes post-election. These expansive pipelines reflect the sector's resilience and underline its critical role in driving urban growth and economic development in the coming months.
Frequently Asked Questions
Which real estate companies are planning major launches in H2 FY25?
Prominent real estate companies like Prestige Estate Projects, Puravankara, Sobha, and Brigade Enterprises are planning major launches in H2 FY25.
What is the total value of Prestige Estate Projects' H2 launches?
Prestige Estate Projects plans to introduce developments worth INR 52,000 crore by the end of March 2025, with a total developable area of 53 million square feet.
Why are there delays in project approvals for real estate developers?
Delays in project approvals are primarily due to election-related activities that diverted officials to other responsibilities.
How much developable area does Puravankara plan to introduce in H2?
Puravankara plans to introduce 12.27 msft of new projects and an additional 3.44 msft in ongoing phases, totaling 15.7 msft for H2.
What is the projected sales bookings value for Sobha Limited's H2 projects?
Sobha Limited plans to develop 19.29 msft of residential space across 18 projects, with 5.5 msft scheduled for H2. The exact projected sales bookings value is not specified, but the company's overall pipeline is strong.
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