Real estate firm M3M Group will launch the first residential project on a part of the 185-acre land parcel it had bought from Sahara Group for ₹1,211 crore about six years ago, said a top company executive.
The developer plans to launch about 1,100 premium apartments in Sector 113, Gurugram, in a month’s time. The two-bedroom homes (600 units) will be priced at ₹1.5 crore and the three-bedroom homes (500 units) at ₹2 crore. The project’s construction cost is about ₹600 crore and it will be delivered in 2023.
Of the 185-acre mixed-use development, with 12 million sq. ft of 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 great demand for luxury projects. Investors are also coming back only with credible projects and developers. The markets have consolidated. In Gurugram, for instance, in particular, not only a few developers are left and not many premium projects are being developed,” M3M director Pankaj Bansal said in an interview.
In December 2014, Sahara Group had signed an agreement to sell the land parcel to M3M primarily to raise money to get its chief Subrata Roy released from jail. The final installment of over ₹700 crore was paid by M3M in mid-2016, marking the closing of the acquisition.
M2M had earlier developed an office-cum-retail project on the land.
“While there is higher demand for ready projects, investors and homebuyers are buying in under-construction projects of developers who have delivered and have credibility. There is no pressure on pricing as such, but to attract buyers, one has to adopt strategies in terms of a flexible payment plan or other incentives. The location and amenities a project offers are of most importance today,” Bansal added.
Home sales in the National Capital Region (NCR) saw a 35% year-on-year jump to 8,406 units in the July-September quarter, compared to 6,236 units in the year-ago period.
Sequentially, sales grew 31% compared to the preceding June quarter, according to a recent report by Liases Foras Real Estate Rating & Research.
Maximum growth in sales was witnessed 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’ that will develop low-rise floors and condominiums aimed at younger and first-time home buyers. The company will invest ₹8,000-10,000 crore in developing residential projects in Gurugram. It also plans to expand to Noida, Mumbai Metropolitan Region, Pune, Goa, Bengaluru, and Hyderabad later.
In its first two projects in Gurugram, Piramal Capital, IIFL Group and the Bansal family of M3M, have invested ₹700 crore. The company plans to bring in more investors going forward.
Source : live mint
