BENGALURU: Real estate developer M3M India Pvt. Ltd is looking to extend sales and launch nearly one residential or commercial project monthly in FY23 as demand continues to revive.
Sales within the top eight cities in the April-June quarter stood at 77,015 units, of which 9,126 units were in the capital Region (NCR), a 42% rise on a year-on-year period, as per data by Liases Foras Research. Average prices in Delhi-NCR also rose 9% during the identical period. In 2021, the promoters of Gurugram-based M3M launched Smart World Developers, a parallel reality brand to develop low-rise floors and condominiums for younger and first-time homebuyers. In an interview, M3M director Pankaj Bansal spoke about its launch and pricing strategy, sales outlook, and accordingly the concerns that remain. Edited excerpts:
How has the house sales momentum been for M3M this year?
The real estate sector is on a bull run. Last year (2021-22) was the effortless year for us as developers, within the past decade. In terms of gross revenue, M3M and Smart World cooperatively did about ₹10,500 crores of sales bookings. This year, too, the momentum has been identical for us as we expect it to only grow. Within the April-June quarter, we’ve already accomplished ₹2,350 crores in sales. Developers who are delivering and executing projects have seen great results in terms of sales.
Home prices are on the rise. What’s M3M’s pricing strategy?
In north India, the market has been growing furthermore residential prices have gone up by 10-15%, compared to even 1 / 4 earlier. Prices in plotted development projects have gone up as high as 1.5-2 times. In our residential project M3M Capital on Dwarka Expressway, which was launched in March, we started sales at ₹9,750 sq. ft, which then went up to ₹10,700 sq. ft. Last month, we sold at ₹11,500 square foot in the same project. Overall sales in the project, including March sales, are ₹1,500 crores thus far. So, we are increasing prices, but in a staggered and thoughtful manner.
What’s M3M’s sales outlook and launch pipeline in 2022-23?
I don’t think sales will hamper. At any point, acknowledge a failure in the delivery of projects, by any developer, then there could again be an adverse impact. We are targeting over ₹10,000 crores of sales in M3M individually. In 2022-23, we are drafting almost three launches quarterly, synchronously in Gurugram. it’ll be a mix of residential, retail, and shop-cum-offices (SCO) plotted projects.
What’s the event plan on land M3M had bought from Sahara Group?
The Sahara land has been planned as an outsized, integrated development across 200 acres. After the M3M Capital project launch of 1,700 units, we are gearing up to launch a 1,000,000 sq. ft retail development. Last year, we introduced a shop-cum-office plotted project on 7 acres, which we’ve delivered. During this quarter, we are rooting for the launch of another 10 acres on the same land parcel, which can have 1,300 residential units.
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