Sobha Ltd is enhancing its footprint in Gurgaon with a joint development agreement for a 12-acre residential project in Sector 63A, marking its third venture in the city. Sobha plans to add 9 million square feet of residential space in FY25, reflecting growing demand in the area. The Golf Course Extension is a key focus due to its high-end infrastructure. With a 28% rise in FY24 sales to INR 6,644 crore, Sobha's expansion strategy aligns with Gurgaon's booming real estate market.
Bengaluru-based Sobha Ltd has made a move to strengthen its presence in the burgeoning real estate market of Gurgaon. The company has signed a joint development agreement for a new residential project on a 12-acre land in Sector 63A. This marks Sobha's third project in Gurgaon, following successful initiatives in Sector 99 and Sector 63. The agreement, registered on July 12, includes a substantial stamp duty payment of INR 4.3 crore.
As Sobha gears up for expansion, the company aims to add about 9 million square feet of residential space in the fiscal year 2025. This ambitious plan not only highlights the growing demand for luxury housing in Gurgaon but also underscores the potential of the area, especially near the Golf Course Extension. This location is known for its well-developed infrastructure and high-end living options, attracting both homebuyers and investors.
Analysts have noted that Gurgaon's real estate market is thriving due to the increasing demand from end-users. Gaurav Kumar, MD of Capital Markets and Land at CBRE, emphasized that this surge is supported by ongoing infrastructure development in the region, making it an appealing destination for residential projects. Similarly, Shalin Raina, MD of Residential Services at Cushman & Wakefield, pointed out that the rapid growth in the Golf Course Extension area is driven by top-tier developers and improved amenities.
Sobha Ltd has reported impressive financial results for FY24, with sales reaching INR 6,644 crore, representing a 28% increase from the previous year. The company also achieved its highest average price realization at INR 10,922 per square foot. In FY25, Sobha plans to launch projects that add 9 million square feet of residential space, compared to 7 million square feet in FY24. Furthermore, the company is actively working to advance its remaining land bank, which offers a potential of 25-30 million square feet, signalling its aggressive expansion strategy in the competitive real estate market.
In a broader context, the real estate sector is witnessing a notable rise in land transactions as developers aim to meet the increasing demand for urban housing. Recently, Chintels India transferred ownership of two land parcels near the Dwarka Expressway to Sobha Group, illustrating the strategic moves by various players in the market. In another significant deal, Oberoi Realty acquired a prime 14.81-acre land parcel in Gurugram for INR 597 crore, showcasing the intense competition among developers to secure desirable locations.
The growing interest in residential projects, particularly in Gurgaon, suggests a robust future for Sobha Ltd and similar companies. Through strategic joint ventures and continued investment in prime locations, Sobha is well-positioned to capitalize on the ongoing trends in the real estate sector. As the market evolves, it will be interesting to see how developments unfold in Gurgaon and surrounding areas, reflecting the dynamics of urban housing growth in India.
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