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NCR-based listed real estate firm, Signature Global, is planning to launch projects in the premium housing segment spread across an area of around 8 to 10 mn sq ft next fiscal with a revenue potential of more than ₹12,000 to ₹13,000 crore, Pradeep Kumar Aggarwal, founder and chairman, Signatureglobal (India) Limited told HT Digital.
“These projects will be launched on land parcels that have either been bought or are under joint development agreements. These projects are expected to have a sales potential of more than ₹12,000 to ₹13,000 crore,” he said.
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The listed real estate firm has sold around 1,000 luxury flats in its new housing project Deluxe-DXP located at Sector 37 D in Gurugram, along the soon-to-be opened Dwarka Expressway, for over ₹3600 crore. The cost of land acquisition and construction is likely to be around ₹2200 crore.
“These units were sold through a digital platform created by Boston Consulting Group and were fully sold out within 48 hours,” he said, adding the project was oversubscribed 5.4 times.
He said that the project comprises 1008 premium housing units of 2600 sq ft. These would be spread across eight towers and priced between ₹3 to ₹4 crore. The project will have only one phase. It is expected to have seven swimming pools and two clubs of 40,000 sq ft each. It is expected to have one basement and two podium level parkings, similar to projects in Mumbai.
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“Construction is expected to start in the next three to four months after environment clearance is received. The company is planning to go in for the engineering, procurement and construction model wherein top construction firms would be roped in,” he said, adding the project should be completed in the next four to five years.
As for demand, the company has received bookings from homebuyers across the country, right from Gurugram, Delhi, Ranchi, Chandigarh, Uttar Pradesh to Jammu and Kashmir, he said.
Also Read: To a new urban sprawl — Dwarka expressway
“With this new launch, the company will be exceeding the guidance of ₹4,500 crore this financial year generating close to ₹3600 crore from the latest premium residential launch,” said Aggarwal.
Premium projects pipeline for the next fiscal
The company has a total project pipeline of 31 mn sq ft of which is is planning to launch close to around 8 to 10 mn sq ft next fiscal.
The company is planning to launch at least four projects in Gurugram next fiscal. One project will be on Sohna Road. These would be in the premium segment with units priced in the range of ₹1 to ₹1.5 crore. Another project is being planned in Sector 71. These would be in the range of ₹3 to ₹5 crore. A third project is being planned in Sector 84 in the same range and one more project along Dwarka Expressway in the price range of ₹3 to ₹4 crore.
“Infrastructure in Gurugram has improved and there is an increase in the demand for premium housing. The Dwarka Expressway is expected to be opened for the public soon. These are factors that prompted us to launch the premium housing project at this juncture along Dwarka Expressway,” said Aggarwal.
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He also mentioned that to maintain discipline, the company has decided to go in for a balanced approach wherein it will not acquire more than ₹1000 to ₹1200 crore worth of land parcels in a year. “A land parcel worth ₹1000-1200 crore has a sales potential close to ₹10000 crore. One does not require more than that in a year.”
Reasons behind the shift from affordable housing to premium projects
Signature Global which is perhaps the biggest player in the affordable housing category, has of late decided to shift its stance and has now started launching premium housing projects.
“We decided to launch a luxury housing project as affordable housing projects are no longer viable on account of the rising cost of land. Having said that, we are open to launching more affordable housing projects, which is our core area, if we receive support from the government for affordable land,” said Aggarwal, adding the company will be launching 2500 affordable housing units in Sector 93, Gurugram, soon.
The company also plans to launch a plots scheme in Manesar this fiscal. “These would be 100 sq yard residential and industrial plots in the range of ₹50 to ₹60 lakh,” he said.
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Aggarwal is of the opinion that the government should consider introducing a special residential housing zone policy for affordable housing projects. “Land within these SRZs should be made available at a lower price to promote affordable housing projects. It is only then that affordable housing projects will be viable for real estate developers,” he said, adding these lands could be located in the suburbs well connected with Regional Rapid Transit System (RRTS) and Metro connectors.
Plans going forward
Aggarwal said that while launching projects in Noida is on the company’s radar, it hasn’t procured any land parcel yet. The company is exploring opportunities along the Yamuna Expressway. “With Jewar Airport coming up, we are exploring affordable housing opportunities along the Yamuna Expressway,” he said.
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The company is also bullish on temple towns. “Temple towns are certainly in our wish list but we would much rather wait for real estate markets to stabilize in these towns. It should be a business decision and not an emotional decision,” he added.
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Last year, Signature Global launched its maiden public offer to raise ₹730 crore. The public issue, comprising a fresh issue of shares worth ₹603 crore and an Offer for Sale (OFS) of ₹127 crore, was subscribed 11.88 times. The company is primarily into mid-income and affordable housing segment
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