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Prestige Group has exited its proposed luxury residential project in Lutyens Delhi after selling the bungalow it owned on Kasturba Gandhi Marg for INR 450 crore. The Bengaluru-based developer had acquired the 5,100 sq yd property from TDI Infratech for about INR 300 crore and planned a boutique project of 8-9 high-end homes. Persistent approval delays and strict development controls in the Lutyens Bungalow Zone led to the decision. The company has since shifted focus to residential opportunities across the NCR region.
Prestige Group has decided to withdraw from its planned luxury residential development in Lutyens Delhi and has sold the bungalow it owned in the area for INR 450 crore. The property, located on Kasturba Gandhi Marg, measures around 5,100 sq yd and was sold to a businessman with business interests in eastern India. Advertisement
The Bengaluru-based real estate developer had acquired the bungalow from TDI Infratech around two years ago for approximately INR 300 crore. At the time of acquisition, Prestige had plans to develop a low-density luxury project comprising 8 to 9 large apartments. The proposed homes were expected to be priced at over INR 70 crore each, with the total revenue potential of the project estimated at nearly INR 700 crore.
However, the company faced prolonged delays in securing the required approvals for redevelopment. The Lutyens Bungalow Zone is governed by strict planning norms, heritage guidelines, and construction restrictions, which significantly limit redevelopment timelines and flexibility. These regulatory hurdles made the project commercially unviable for Prestige over the long term, prompting the company to exit the asset.
As part of the transaction, Prestige Group also cleared an outstanding loan of around INR 225 crore that was linked to the property. Initially, the developer had explored a joint development arrangement with TDI Infratech but later opted to buy the land outright before deciding to sell it.
Following its exit from Lutyens Delhi, Prestige is strengthening its presence in the National Capital Region through other residential projects. The company has launched its first housing project in Ghaziabad and is actively evaluating opportunities in Noida and Gurugram. It is also in advanced stages of acquiring nearly five acres of land in Gurugram for a future luxury residential development.
Prestige is already developing a large residential project in Noida Sector 150 with a saleable area of about 2.2 million sq ft, although progress there has been affected by infrastructure-related delays. The company continues to focus on markets where scale, approvals, and execution timelines are more predictable.
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