 "Mantri Realty to invest Rs 1,500 cr on housing projects")
The Mumbai-based real estate developer said the price of the residential units will go up to Rs 5 crore. These projects will be built in Mumbai, Pune, Bangalore, Gwalior and Solapur.
"The realty market has almost stabilised and buyers are coming back as they have realised that prices are unlikely to fall further. Demand is good if we offer attractive schemes," Mantri Realty Chairman Sunil Mantri told PTI here.
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Although there is no possibility of any price hike in immediate future, but developers are facing pressure due to 15-20 per cent rise in prices of commodities like steel and cement compared to last year, he added.
Speaking on the sidelines of the Lex Witness summit here, Mantri said: "We are going to invest about Rs 1,500 crore over the next three years to develop around 2,300 units in six projects across Central, Western and Southern India."
The company has already acquired land required to develop these projects, which will be launched within next 3-4 months, he added.
Out of the total investment, Rs 300-500 crore will be raised as debt from banks, while the rest will come from internal accruals and customers' booking, he added.
Elaborating on the projects, Mantri said the company will construct 80 luxury apartments in Mumbai that will be offered between Rs 2 crore and Rs 5 crore.
"We will also develop 250 units in an another upcoming project in Mumbai. These flats will be sold at Rs 1 crore and above. We are also offering a discount of Rs 500 per sq ft in this project," he added.
Another high-end residential project will be constructed in Pune. The 400 apartments in the complex will be sold at Rs 1-2 crore.
When asked about the company's plans for affordable housing segment, he said Mantri Realty will launch a housing complex in Gwalior, comprising about 1,200 units.
"These flats will be offered for Rs 8-25 lakh. To further boost demand, we will sell these units with a scheme of paying the 75 per cent of the total amount in 60 interest-free instalments," Mantri said.
He further said 100 units will be developed in Solapur that will be sold at a price ranging from Rs 50 lakh to Rs 80 lakh.
"Besides all these, we are also adding a new phase in a mid-range housing project in Bangalore. We will launch 200 new flats, which will be sold at Rs 40-60 lakh," Mantri said.
Talking about the company's revenue, Mantri said it is targeting to increase it to Rs 400 crore in this fiscal from Rs 250 crore in FY13.
The company currently has a land bank of over 500 acres. It also has a total debt of around Rs 100 crore.