Emaar India launched a luxury project in Gurugram last year for which it is investing close to ₹900 cr; Second phase likely to be launched within six months.
Real estate company Emaar India plans to launch close to 8 to 10 mn sq ft this year with an investment of about a billion dollars over the next four to five years. Almost 80% of the projects will be in Gurugram, Kalyan Chakrabarti, CEO, Emaar India told HT Digital.
The company is currently present in five locations that include Lucknow, Mohali, Indore, Gurugram and Jaipur. It has not yet launched a project in Ludhiana.
“We hope to acquire lands in a couple of new locations but as of now we have plans to expand only in the same cities where we are present historically. The 8 to 10 mn sq ft where we intend launching this year will primarily be in existing markets. This roughly translates to 8 to 10 projects in existing locations. Majority of our launches will be in Gurugram where the pricing will be upwards of ₹8000 per sq ft,” he told HT Digital.
The company launched a luxury project in Gurugram’s Sector 62 last year for which it is investing close to ₹900 crore spread over four to five years. The second phase of the project is likely to be launched in the next six months.
“The first phase had 424 units and the second phase is expected to have around 60 units. Of the ₹900 crore, the company has spent close to ₹60 crore which is from the total 85% it had planned to spend for the the first phase.” said Chakrabarti.
“The total development cost for the project Urban Oasis is ₹900 crore spread over a period of four to five years. As much as 85% of the amount is for the first phase and 15% for the second phase,” he said.
The size of the project is approximately 7 lakh sq ft for phase 1. The expected sales revenue from both the phases is expected to be around ₹2000 crore, he said.
The entire project is spread across 9.35 acres of which 80% has been launched. The project also comprises 50,000 sq ft of retail and commercial space.
The company has also launched a commercial project EBD (Emaar Business District) in sector 83, Gurugram. The project is spread across an area of 0.14 mn sq ft and the company intends investing close to ₹150 crore. The expected sales revenue from the project is expected to be close to ₹330 crore, he said.
The company has more land banks in Gurugram and multiple projects are under the approval stage, he said.
The company is also contemplating launching a greenfield project in Mumbai.
It has no plans for Noida and Bengaluru yet.
On the status of existing projects, Chakrabarti said the company has completed all legacy housing projects and the possessions are being given to customers.
After the demerger, the company has handed over 95% of the projects. “Last year we handed over close to 2400 housing units,” he said, adding these were in the projects historically held by the company in India. At the time of demerger, 21 projects were under-construction and currently five projects are under construction. The balance 16 projects have been completed and delivered.
Emaar Properties entered the Indian real estate market in 2005 in partnership with India’s MGF Development and invested ₹8,500 crore through the joint venture firm Emaar MGF Land. In April 2016, Emaar Properties decided to end the joint venture with MGF through demerger. The company also faced court cases. The NCLT approved the demerger in 2018.
Giving an update on the retail project in Srinagar, Chakrabarti said that land related discussions are still on. “Investment is expected to be close to a million plus. Details pertaining to the land are expected to be finalized by the second quarter this year,” he said.
Source : HT
