Prestige Estates pips top players to clock record Rs 10,000-crore presales

Bengaluru-based Prestige Estates Projects crossed the presales mark of Rs 10,000 crore in FY22.

This is the highest ever presales for the company and also the highest among listed real estate players that have released their numbers so far.

The company did presales (or sales prior to completion of construction) of Rs 10,382 crore, registering a growth of 90 per cent on a yearly basis.

Presales of Prestige, which is fast becoming a Pan-Indian player, was 1.15 times the presales of Macrotech Developers (Lodha) and 2.7 times the figure of Oberoi Realty in FY22.

During FY22, Prestige launched 16.77 million sq ft across different cities — Bengaluru, Mumbai, Kochi, Hyderabad and others.

In FY23, the group plans to launch over 15 million sq ft of realty projects in Mulund and Pali Hill in Mumbai, Bengaluru, Delhi-NCR and Chennai, among others.

On the execution front, the company has completed 14.26 million sq ft in FY22 — in Bengaluru, Chennai and Hyderabad.

Irfan Razack, chairman and managing director of the company, said planned launches and marketing helped it achieve record numbers.

“A clear plan was formulated at the beginning (of the year) setting expectations across geographies. It was aggressively set in certain cases, doubling business in certain geographies. This warranted to plan ahead with a significant number of launches. All of this was achieved,” said Razack.

Razack added that promotions and continuous marketing efforts were done with precision with spectacular promotion during ‘KEYS’, its yearly property festival. This yielded an enormous response.

“All efforts were done on a continuous basis, irrespective of lockdown and other disruptions. Initiatives such as digital bookings and virtual site visits, among others, were extensively used. Also, initiatives in the non-resident Indian (NRI) market were successfully driven,” he said.

Prestige City, Prestige Finsbury Park, Prestige Primerose Hills, Prestige Jindal City, Prestige Marigold, Prestige Song of the South, Prestige Tranquil and Prestige Beverly Hills, among various other projects, saw significant response, he said.

Razack, however, did not share its presales target for FY23. 

Venkat K Narayana, chief executive of the company, said that new sales have come from 15.07 million sq ft of sales volume with average selling price of Rs 6,890 per sq ft. “Our collections were also all-time high at Rs 7,466 crore,” he added.

“Not many companies have become successful as pan Indian developers. Hence, what Prestige has done is significant in terms of entering Mumbai and NCR. This is yielding results for the company,” said an analyst.

The fourth quarter has seen sales (across top eight Indian cities) attain a four-year high of 78,627 residential units despite the third wave, said Knight Frank India, in a recent report. During FY22, HDFC Securities expects companies in its coverage — including Oberoi, Prestige, Sobha and Macrotech — to deliver all-time high presales.