Puravankara Group aims to triple its land holdings from 15 million square feet to around 45 million square feet within three years. With a sharp focus on the Delhi NCR region, the company is exploring diverse funding avenues to fuel its growth. Earlier this year, its fully-owned subsidiary, Provident Housing, secured ₹1,150 crore from HDFC Capital Advisors, part of the HDFC group’s real estate private equity division. The board has also approved raising up to ₹1,000 crore through qualified institutional placement (QIP), as stated in company filings on BSE. Currently, they are negotiating with additional private equity firms and plan to use their internal funds for future projects.
India-wide Approach
Last year, Puravankara marked a significant milestone by securing redevelopment rights for two housing societies in Mumbai, valued at ₹1,500 crore. In September, the company entered south Mumbai’s high-end market by acquiring Miami Apartments in Breach Candy. The Property can command rates as high as ₹1,25,000 and ₹1,40,000 per sq. ft.
Further strengthening its regional presence, the company, through its wholly-owned subsidiary Purva Oak Pvt. Ltd acquired a 12.75-acre land area in Thane, which is expected to have a GDV of ₹4,000 crore.
Delhi Initiative
The group aims to enter the Delhi-NCR market next year and is assessing potential opportunities. They will likely introduce the Puravankara brand, which specialises in luxury and high-end projects.
“The focus is on Puravankara, but we are exploring opportunities for Provident Housing in the Gurugram-Delhi region,” he said. “Of course, there are some opportunities that have come up in Noida as well. Let us see what we conclude.”
“On the demand side, today, 35% of the demand across cities is in the mid-segment market ( ₹50 lakh to ₹2 crore). Supply has significantly dropped in that space,” said Rahul Purohit, co-founder and chief business officer at Square Yards. “I think no other player is exploring that segment.”
Purohit pointed out that it makes sense to enter this market, as the luxury market has become oversaturated due to the boom in the last two years.
“Legacy players have moved to the luxury segment due to the rising cost of construction and the price of land. Obviously, the luxury market gives a better margin to a developer because they can charge a premium,” he said. However, there is a shortage of supply in the mid-market segment, he said.
Signature Global, which competes with Puravankara, initially focused on affordable housing priced at ₹15-30 lakh. In 2020, they moved into the mid-income market with homes starting at ₹45 lakh. In 2024, they launched their first high-end project. These include Deluxe–DXP along Dwarka Expressway and Titanium SPR on Southern Peripheral Road in Gurugram. Both projects, priced between ₹3.5-5.5 crore, had impressive sales.
Weight of Purchases
The company has a strong strategy but reports losses due to its acquisitions. In Q2 FY25, the net loss expanded by more than 50% to ₹17.06 crore, compared to a loss of ₹11.22 crore in the same quarter last year. The total net loss in the year’s first half was ₹5 crore, based on company filings. On the bright side, revenue grew by 36% year-on-year, reaching ₹520 crore.
During the previous six months, the group has invested nearly ₹945 crores in land acquisitions, aiming for a potential gross development value of ₹9,700 crore from 5.8 million square feet of new land purchases.
With 28 ongoing projects and a diverse portfolio of residential brands catering to luxury, mid-range, and budget-friendly segments, Puravanaka is catering to a broader market. Its expanding commercial portfolio, accounting for 10% of operations, and over three million square feet of developments reflect its long-term vision.
Read more through the links below to uncover the key trends and market leaders driving this growth:
Mint – https://bit.ly/4f3dMeR
Published Date: 2 Dec, 2024
