)
Bengaluru-based real estate companies such as Prestige, Puravankara and others are looking to enter new cities such as Pune, Mumbai and expand in Southern cities such as Chennai, Hyderabad, Mangaluru for additional growth.
For instance, Prestige which draws 85% from Bengaluru projects, expects its contribuiton to slip to 65-70% as other cities are expected to contribute more to its topline, said its chairman and managing director Irfan Razack.
According to Razack, the company is also expecting growth to come from entering new cities such as Mumbai and Pune.
“Our business in Bengaluru will continue to grow in absolute terms. However, the other cities will contribute more and hence Bengaluru's share may come down," Razack said.
Though home sales in Bengaluru are stable compared to Mumbai and NCR, launches in the city are coming down. According to realty consultant Cushman & Wakefield, new project launches has gone down 27% in Bengaluru in July to September quarter of this year while they have gone down 21% at the country level.
In case of Puravankara projects, of the 8.09 million square feet of residential projects planned, Bengaluru accounts for 3.18 million square feet, representing 40%. The balance 60% are outside the city. However, in case of its value housing brand Provident, 77% are in Bengaluru.
“The reason for growth in non-Bengaluru Tier-I cities like Chennai, Kochi, Hyderabad, Mumbai and Pune is due to the existence of continued demand, stable economic growth, migratory population and an excellent socio-cultural background,” said Puravankara joint managing director Ashish Puravankara.
He said the company is evaluating opportunities in Coimbatore, Mengaluru where it will launch its budget housing brand Provident.
Jerry Rao-promoted Value & Budget Housing Corp (VHBC) is working on eight projects, of which six are in Chennai, Mumbai Metropolitan Region, Delhi-Jaipur Corridor, and others.
“We pursue projects on a national level. Launches depend on viability, price and land and so on,” said Jayakumar, managing director, VBHC.
