Birla Estates, a real estate arm of B K Birla Group, has identified around 200 acres of land owned by its parent firm Century Textiles and Industries across Mumbai and Pune to strengthen its residential real estate business.
With a focus on premium luxury housing projects, the company also plans to build homes in Pune, Bengaluru and the National Capital Region.
Residential project demand
IBEF.org states that the real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13 per cent of the country’s GDP by 2025. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs.
Sectors such as IT and ITeS, retail, consulting and e-commerce have registered high demand for office space in recent times. Commercial office stock in India is expected to cross 600 million square feet by 2018 end while office space leasing in the top eight cities is expected to cross 100 million square feet during 2018-20. Gross office absorption in top Indian cities has increased 26 per cent year-on-year to 36.4 million square feet between Jan-Sep 2018. Co-working space across top seven cities has increased sharply in 2018 (up to September), reaching 3.44 million square feet, compared to 1.11 million square feet for the same period in 2017.
K T Jithendran, chief executive officer at Birla Estates believes there is a huge scope in some of the land owned by the textile factory The company plans to focus on four markets as they are more consistent.
The firm has tied up for three land parcels totalling to 88 acres under the joint venture model across NCR and Bangalore for its residential foray. “We are looking for several more partnerships that are currently under discussion
Birla Estates has tied up with local landlords to develop two residential projects in Bengaluru. Separately, the firm is looking to acquire distress assets to add to it portfolio.
Source..Et Realty