Sobha Developers Forays Into Mid Segment Homes
The second largest real estate firm of Bangalore also plans to replicate similar model in other cities like Chennai and NCR.
By Sobia Khan, ET Bureau | Updated:
BENGALURU: Realty firm Sobha Ltd that specializes in luxury homes has forayed into mid segment residential project under Sobha Dreams series brand.
According to the new strategy Sobha’s mid end residential projects will be under the Sobha Dream brand, while house starting from Rs 90 lakh will be under Sobha brand.The company has launched its maiden project Sobha Dream Acres at Rs 5,500 per square feet, lower than the usual Rs 6,000 per sq ft. Earlier the builder only constructed 3 bhk units of 1700 sft but will now look at studio and 2 bhk units of 400 sft to 1100 sft each.
“Once the project is sold out it should give us revenue of Rs 4,200 crore at current price,” said J C Sharma, Vice Chairman and Managing Director, Sobha Ltd.In the first phase it plans to build 2,200 units that will be completed in two years. The 81 acre property coming up in Balagere, outskirt of Bangalore will have a total 7,000 unit and is expected to be completed in seven years. “The property will give us volume and will cater to the aspirations of salaried professionals and employees in the IT sector. We will be using pre cast technology for the project,” said Ravi Menon Chairman of Sobha Ltd.
The second largest real estate firm of Bangalore also plans to replicate similar model in other cities like Chennai and NCR. “We want to gain larger market share in this segment going ahead.” said Menon.
According to Cushman & Wakefield, mid segment residential units continued to remain favourite amongst developers with a two-third share in total launches; also, unit launches in this segment increased by 5% from the previous year. Residential property launches across top eight cities declined by 12% y-o-y in 2014 with total launch of 153,000 units. The top three cities of Bangalore (27%), NCR (17%) and Mumbai (16%) comprised of 60% of the total new launches in 2014.
Separately, Sobha is currently executing 49 real estate projects in 8 cities measuring 31.24 mn.sqft of developable area and 22.45 mn sft of saleable area. Additionally, it has 28 contractual projects in 10 cities measuring 8.62 mn sft of developable area.
The company has a land bank of 2500 acre with a dbt equity ratio of 0.7 as on December 2014.
According to the new strategy Sobha’s mid end residential projects will be under the Sobha Dream brand, while house starting from Rs 90 lakh will be under Sobha brand.The company has launched its maiden project Sobha Dream Acres at Rs 5,500 per square feet, lower than the usual Rs 6,000 per sq ft. Earlier the builder only constructed 3 bhk units of 1700 sft but will now look at studio and 2 bhk units of 400 sft to 1100 sft each.
“Once the project is sold out it should give us revenue of Rs 4,200 crore at current price,” said J C Sharma, Vice Chairman and Managing Director, Sobha Ltd.In the first phase it plans to build 2,200 units that will be completed in two years. The 81 acre property coming up in Balagere, outskirt of Bangalore will have a total 7,000 unit and is expected to be completed in seven years. “The property will give us volume and will cater to the aspirations of salaried professionals and employees in the IT sector. We will be using pre cast technology for the project,” said Ravi Menon Chairman of Sobha Ltd.
The second largest real estate firm of Bangalore also plans to replicate similar model in other cities like Chennai and NCR. “We want to gain larger market share in this segment going ahead.” said Menon.
According to Cushman & Wakefield, mid segment residential units continued to remain favourite amongst developers with a two-third share in total launches; also, unit launches in this segment increased by 5% from the previous year. Residential property launches across top eight cities declined by 12% y-o-y in 2014 with total launch of 153,000 units. The top three cities of Bangalore (27%), NCR (17%) and Mumbai (16%) comprised of 60% of the total new launches in 2014.
Separately, Sobha is currently executing 49 real estate projects in 8 cities measuring 31.24 mn.sqft of developable area and 22.45 mn sft of saleable area. Additionally, it has 28 contractual projects in 10 cities measuring 8.62 mn sft of developable area.
The company has a land bank of 2500 acre with a dbt equity ratio of 0.7 as on December 2014.
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