Prestige Estates: Navigating Regulatory Delays with Optimism

Prestige Estates Projects Ltd, a leading real estate developer based in Bengaluru, experienced a 38% decline in sales bookings to Rs 10,065.7 crore during April-December due to fewer housing project launches amid regulatory delays. Despite this, the company remains optimistic about achieving Rs 24,000 crore pre-sales, driven by strong housing demand.

Bengaluru's premier real estate firm, Prestige Estates Projects Ltd, is navigating a challenging financial landscape, reporting a notable 38% drop in sales bookings to Rs 10,065.7 crore during the April-December period of this fiscal year. This decline is primarily attributed to fewer housing projects being launched due to delays in obtaining regulatory approvals.

Despite the setbacks, the company sold an impressive 80.9 lakh square feet at an average price of Rs 13,128 per sq ft in the first nine months of the 2024-25 fiscal year. Prestige Estates remains optimistic about reaching Rs 24,000 crore in pre-sales for the full fiscal year, thanks to robust housing demand. The company's diversified portfolio, spanning residential, commercial, and other segments, underpins its resilience and future outlook.

Prestige Estates' comprehensive business model encompasses various sectors, including residential, commercial, retail, hospitality, and more, with significant operations across 13 major locations in India. Currently, the group is developing 59 projects across 101 million sq ft and planning 65 additional projects over 96 million sq ft, aiming to regain sales momentum as approvals are finalized for large projects.

(With inputs from agencies.)