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Tata Realty goes aggressive with Rs.4,000 crore investment
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Last Updated: 10th December 2022 - 01:25 pm
In the last quarter, almost all realty companies have shown positive vibes in terms of demand pick-up. While revenge buying has been one factor, the more important factor has been home loan rates are at the lowest in history. Most home buyers are seeing the eminent wisdom of locking themselves into long-term mortgages at these rates.
One company with aggressive plans on the realty front is Tata Realty and Infrastructure, the real estate development arm of Tata Group. Tata Realty plans to invest Rs.4,000 crore into the real estate business. Out of this allocation, Rs.2,000 crore will be towards residential housing projects and the other Rs.2,000 crore will be for commercial projects. Tata Realty hopes to invest this sum in the next 2 years.
As per reports, Tata Realty is seeing a surge in demand for ready-to-move-in residential properties after the bitter experience of unfinished projects by many builders in the last few years. The aggression is evident from the fact that Tata Realty increased its construction worker count from 3,500 to 5,000 during the pandemic.
In FY21, Tata Realty reported revenues of Rs.1,500 crore which is 15% more than revenues in FY20. In volume terms, Tatas sold a total of 1,300 units during FY21 with record sales in Q4. That has encouraged Tata Realty to go aggressive on future projects with an outlay of Rs.4,000 crore. For FY22, Tata Realty expects another 20% growth from current levels.
Tata Realty currently has 4 residential projects under construction consisting of a total of 2,500 units spread across Mumbai, NCR-Delhi and Kolkata. Its residential portfolio has about 45 million SFT under construction. In addition, Tata Realty also has 3 commercial projects under progress with 7 million SFT of leased and owned space. Tata Realty has a 35-year track record in India.
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