Prestige Group Plans ₹42,000 Cr Housing Launch Across 6 Cities in FY26

Bengaluru-based real estate giant Prestige Estates Projects Ltd has announced ambitious plans to launch 25 residential projects across major Indian cities during the current fiscal year, with an estimated gross development value exceeding ₹42,000 crore. The company aims to capitalize on robust housing demand following a challenging previous year marked by regulatory approval delays.

Strategic Expansion Across Multiple Cities

According to the company's latest investor presentation, Prestige Estates intends to develop 44.8 million square feet of residential space with a total gross development value of ₹42,120 crore. The projects will be strategically located in high-demand markets including Bengaluru, Chennai, Hyderabad, Mumbai, Delhi-NCR, and Goa.

The expansion comes as the company seeks to regain momentum after a subdued FY25 performance. During the previous fiscal year, Prestige Estates faced significant challenges, launching only 26.28 million square feet with a combined gross development value of ₹26,222.8 crore.

Aggressive Sales Targets Set for Recovery

Company Chairman Irfan Razack revealed that Prestige Estates has set a conservative pre-sales target of ₹27,000 crore for FY26, representing a 59% growth from the previous year. The executive expressed confidence in the company's ability to exceed expectations, stating his preference to "under-promise and over-deliver."

The company has already demonstrated strong momentum in the first quarter of FY26 with the successful launch of The Prestige City Indirapuram, a marquee township development in the National Capital Region. This project, valued at ₹9,000 crore, has already achieved sales of over ₹6,500 crore.

Overcoming Previous Performance Challenges

Prestige Estates' FY25 performance was significantly impacted by regulatory approval delays, which resulted in a 19% decline in sales bookings to ₹17,023 crore. The company fell short of its targeted ₹24,000 crore in sales bookings, with sales volume dropping 38% year-on-year to 12.58 million square feet.

Despite these challenges, the company demonstrated strong pricing power, with average realization for residential apartments, villas, and commercial products rising 36% year-on-year to ₹14,113 per square foot. Plot sale realization increased even more dramatically, registering a 50% year-on-year growth to ₹7,167 per square foot.

Market Position and Industry Context

The ambitious launch plans position Prestige Group alongside other major developers expanding their portfolios. The company's strategy aligns with the broader luxury housing market trends in India, where demand for premium residential properties continues to grow.

Prestige Group's expansion also comes at a time when Bangalore real estate is experiencing significant growth, with the city emerging as a key investment destination for residential developments.

Strategic Inventory Management

Executive Director Zayd Noaman emphasized that the company has entered FY26 with renewed momentum, backed by existing inventories worth ₹20,000 crore in ongoing projects. This substantial inventory base, combined with the strong launch pipeline worth ₹42,000 crore, provides the company with multiple revenue streams to achieve its ambitious targets.

The company's diversified portfolio spans across residential, office, retail, hospitality, property management, and warehouse segments, with operations in more than 13 major locations across India. As of September 2024, Prestige Group has completed 302 projects spanning a developable area of 193 million square feet.

Financial Performance and Future Outlook

While the company reported a significant decline in net profit to ₹467.5 crore in FY25 from ₹1,374.1 crore in the previous year, management remains optimistic about future performance. Total income also decreased to ₹7,735.5 crore from ₹9,425.3 crore in FY24.

The company's strong focus on premium segments and strategic location selection continues to drive pricing power, even as it works to overcome regulatory challenges that impacted previous performance. With a robust pipeline of projects and improving market conditions, Prestige Estates appears well-positioned to achieve its aggressive growth targets for FY26.

Disclaimer: This news article is based on information available in the public domain and from various media sources. The figures and statements mentioned are as reported by the company and other reliable sources. Readers are advised to verify information independently and consult financial advisors before making any investment decisions. The publication does not guarantee the accuracy or completeness of the information provided and is not responsible for any investment decisions made based on this content.