Smart World Developers, financially backed by India Infoline, Piramal Group and the Bansal Family (promoters of M3M group) has acquired two land parcels in Gurgaon and will start the development of six million sq ft of low rise residential projects, at a cost of Rs 3000 crore by March 2022, Aishwarya Bansal, Co-founder, Smart World Developers told ET.
The company plans to invest Rs 8000-10,000 crore in developing residential projects in Gurugram in the next few years. Later on, it plans to expand to Noida, Mumbai MMR, Pune, Bengaluru, Goa and Hyderabad.
“In the initial years, we will only go for low rise residential development with average price of Rs one crore per apartment. In NCR, 40,000-50,000 units are sold every year and we want to have market share of 10-15%,” said Bansal.
The company has already acquired two land parcels – 23-acre at Golf Course Road extension and 58-acre at New Gurgaon and will develop close to 4,000 units on this.
“We are looking to launch one or two more projects by March 2022 and so far we have acquired 180-acre land. We will cover almost all the micro markets of Gurgaon,” said Vivek Singhal, CEO, Smart World Developers.
In the long term, Smart World Developers will invest Rs 8000-10,000 crore in developing residential projects in Gurugram only. The company is also eyeing sales worth Rs 5000 crores by first 2 quarters of business.
The company said that it will target millennials population who were not thinking of buying home before covid but have realised the importance of home.
“As a millennial nation with the largest number of millennials in the world, our focus is to be a catalyst of change and herald the future of real estate in India not just with our unique homes that young, aspiring Indians seek but also the professionalism and customer experience that redefines Indian realty and sets a tall benchmark,” Bansal added.
Smart World Developers has ties up with Turner & Townsend for Quality Management, EY for SOP Implementation, Saraf and Partners Law Offices, Grant Thornton India, HighBar (SAP Implementation), among others.
A advisory board with Anoop Mittal, erstwhile CMD of NBCC, has been constituted to provide directions to the company.
“For us, we take our commitments very seriously; with a development potential of 2.5 crore sq. ft. our vision is to reform Indian real estate by offering a unique concept of living, well-researched and designed for the aspiring millennial, both in terms of value and lifestyle.” added Singhal.
During the Covid-19 pandemic, developers have witnessed a surge in demand for plotted development and independent floors.
According to developers, high-rise complexes take 5-7 years to monetise while it happens much faster in case of independent floors. With an ongoing liquidity crisis, the real estate sector is looking for quick monetisation of assets.
According to property consultants, independent floors will account for 75% of the total launches in Gurgaon — these used to account for less than 10% earlier. Some developers are even converting group housing licences to those under DDJAY.
