Emaar India: A Bold Expansion in the Real Estate Sector
Emaar India, a prominent player in the Indian real estate market, is gearing up for a significant expansion in 2023. With plans to launch approximately 8 to 10 million square feet of new projects, the company is set to invest around a billion dollars over the next four to five years. Kalyan Chakrabarti, the CEO of Emaar India, shared these ambitious plans in a recent interview with HT Digital, highlighting the company’s commitment to growth in the competitive real estate landscape.
Focus on Key Markets
Emaar India currently operates in five major cities: Lucknow, Mohali, Indore, Gurugram, and Jaipur. While the company has not yet ventured into Ludhiana, it aims to concentrate its expansion efforts in these existing markets. Chakrabarti emphasized that nearly 80% of the upcoming projects will be located in Gurugram, a city known for its rapid urbanization and high demand for residential and commercial spaces. The pricing for these new launches is expected to start at ₹8,000 per square foot, reflecting the premium nature of the developments.
Major Projects on the Horizon
One of the standout projects in Emaar India’s portfolio is the luxury development in Gurugram’s Sector 62, known as Urban Oasis. Launched last year, this project represents an investment of approximately ₹900 crore, spread over four to five years. The first phase of Urban Oasis comprises 424 units, while the second phase is anticipated to introduce around 60 additional units. Chakrabarti noted that the company has already invested ₹60 crore in the first phase, which constitutes 85% of the planned expenditure for that segment.
The total development area for Urban Oasis is around 7 lakh square feet, with expected sales revenue from both phases projected to reach ₹2,000 crore. The entire project spans 9.35 acres, with 80% of the area already launched. Additionally, Urban Oasis will feature 50,000 square feet of retail and commercial space, catering to the growing demand for mixed-use developments in the region.
Commercial Ventures and Future Plans
Emaar India is not just focusing on residential projects; it is also expanding its commercial footprint. The company has launched the Emaar Business District (EBD) in Sector 83, Gurugram, which covers an area of 0.14 million square feet. With an investment of approximately ₹150 crore, EBD is expected to generate sales revenue of around ₹330 crore. This diversification into commercial real estate aligns with the company’s strategy to capitalize on the burgeoning demand for office and retail spaces in urban centers.
Looking ahead, Emaar India is contemplating launching a greenfield project in Mumbai, although there are currently no plans for expansions in Noida or Bengaluru. The company is also exploring opportunities to acquire land in new locations, but for now, it will focus on its established markets.
Commitment to Delivering Projects
Chakrabarti provided an update on the status of existing projects, revealing that Emaar India has successfully completed all legacy housing projects and is in the process of handing over possessions to customers. Following a demerger in 2016, the company has delivered 95% of its projects, with approximately 2,400 housing units handed over last year alone. At the time of the demerger, 21 projects were under construction, and currently, only five remain in progress, with the other 16 completed and delivered.
Historical Context and Future Outlook
Emaar Properties made its entry into the Indian real estate market in 2005 through a partnership with MGF Development, investing ₹8,500 crore via the joint venture firm Emaar MGF Land. However, the partnership faced challenges, leading to a demerger in 2016, which was approved by the National Company Law Tribunal (NCLT) in 2018. Despite these hurdles, Emaar India has emerged stronger, focusing on delivering quality projects and expanding its market presence.
In addition to its residential and commercial projects, Emaar India is also working on a retail project in Srinagar, with discussions regarding land acquisition ongoing. The anticipated investment for this venture is expected to exceed a million dollars, with final details expected to be finalized in the second quarter of this year.
Conclusion
Emaar India’s ambitious plans for 2023 and beyond reflect its commitment to growth and innovation in the real estate sector. With a focus on high-demand markets like Gurugram and a diverse portfolio of residential and commercial projects, the company is well-positioned to capitalize on the evolving landscape of Indian real estate. As Emaar India continues to expand its footprint, it remains dedicated to delivering quality developments that meet the needs of modern consumers, ensuring its place as a leader in the industry.