Real estate firm M3M Group will launch its first residential project on a part of 185 acres of land purchased from Sahara Group. ₹1,211 crore about six years ago, said a top executive of the company.
The developer plans to launch around 1,100 premium apartments in Sector 113, Gurugram within a month. The cost of two bedroom houses (600 units) will be ₹1.5 crore and three bedroom houses (500 units) ₹2 crores. The construction cost of the project is approx. ₹600 crores and it will be delivered in 2023.
Out of the 185-acre mixed-use development with 12 million sq. ft. built-up area, about 165 acres will be developed as a township.
“The property market has picked up since the second wave of the pandemic. There is a lot of demand for luxury projects. Investors are also coming back only with credible projects and developers. Markets have consolidated. For example, in Gurugram, in particular, there are not only few developers left nor many premium projects are being developed,” said Pankaj Bansal, director, M3M in an interview.
In December 2014, the Sahara group signed an agreement to sell land parcels to M3M primarily to raise funds for the release of its chief Subrata Roy from prison. last installment of over ₹700 crore was paid by M3M in mid-2016, marking the closing of the acquisition.
M2M had previously developed an office-cum-retail project on the ground.
“While there is a high demand for ready-made projects, investors and home buyers are buying into under-construction projects from developers who have delivered and have credibility. There is no pressure on pricing, but strategies have to be adopted, in terms of a flexible payment plan or other incentives, to attract buyers. The location and facilities a project has to offer are of paramount importance today,” Bansal said.
Domestic sales in the National Capital Region (NCR) grew 35% year-on-year to 8,406 units in the July-September quarter, as against 6,236 units in the year-ago period.
Sequentially, sales grew 31% compared to the previous June quarter, according to a recent report by Liases Foras Real Estate Rating & Research.
The highest growth in sales was seen in Faridabad, followed by Gurugram, Bhiwadi, Ghaziabad and Greater Noida.
In October, the promoters of M3M launched a new real estate firm ‘Smart World Developers’, which will develop low-rise floors and condominiums aimed at small and first-time home buyers. company will invest ₹8,000-10,000 crore in development of residential projects in Gurugram. It later plans to expand to Noida, Mumbai Metropolitan Region, Pune, Goa, Bengaluru and Hyderabad as well.
In its first two projects in Gurugram, Piramal Capital, IIFL Group and the Bansal family of M3M have invested. ₹700 crores. The company plans to bring in more investors.
Source : Mint