Prestige Estates Projects Ltd., a prominent Indian real estate developer, faced a 23% decline in sales bookings for Q1 FY 24-25, dropping from INR 3,914.7 crore to INR 3,029.5 crore year-on-year. The decrease is attributed to delayed project launches, resulting in sales of 2.86 million square feet and 1,364 units, down from 3.83 million square feet and a higher unit count in the previous year. Despite this, the company achieved a 16% year-on-year increase in average realisation per square foot, totaling INR 11,934 for apartments, villas, and commercial spaces. Plot sales surged 46% year-on-year, averaging INR 7,285 per square foot. Chairman and Managing Director Irfan Razack remains optimistic, emphasising Bengaluru, Hyderabad, and Mumbai as key markets contributing to their strategy of launching new projects in the upcoming quarters. Prestige's challenges reflect broader issues in the Indian real estate sector, including approval delays and economic pressures impacting both developers and buyers.
Prestige Estates Projects Ltd., an Indian real estate developer, reported a 23% decline in sales bookings for the first quarter of the current fiscal year (FY 24-25). This translates to a drop from INR 3,914.7 crore in Q1 FY 23-24 to INR 3,029.5 crore in Q1 FY 24-25.
The decline is primarily attributed to a delay in launching new projects. Prestige sold 2.86 million square feet of space between April and June 2024, a significant decrease compared to 3.83 million square feet sold during the same period in 2023. This also resulted in fewer units being sold - 1,364 units in Q1 FY 24-25 compared to the previous year's Q1 figure.
Despite the lower sales volume, Prestige was able to achieve a positive outcome in terms of pricing. The company saw a 16% year-on-year increase in the average realisation per square foot for apartments, villas, and commercial spaces, reaching INR 11,934. Notably, plot sales also witnessed a sharp rise of 46% year-on-year, with an average realisation of INR 7,285 per square foot.
Prestige remains optimistic about its future performance. Chairman and Managing Director Irfan Razack highlighted the company's strong presence in key markets like Bengaluru (contributing 43% of sales), Hyderabad (32%), and Mumbai (23%). In the coming quarters, they plan to launch a significant number of new projects across various locations, aiming to strengthen their market position with a total developable area exceeding 190 million square feet across 300 completed projects.
Prestige's experience reflects broader challenges faced by the Indian real estate sector. Delays in obtaining project approvals, particularly during election periods, can significantly disrupt launch schedules and impact sales. Additionally, rising construction costs and interest rates can put pressure on both developers and buyers.
For homebuyers, this situation can be a double-edged sword. While a slowdown in sales might lead to some developers offering better deals, project delays can cause significant inconvenience and financial strain.
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