Kalpataru Ltd’s plotted development project is likely to come up at Samruddhi Circle, the starting point of the Mumbai-Nagpur Samruddhi Expressway in Nagpur
Mumbai-based Kalpataru Ltd, which filed its draft prospectus last month with market regulator SEBI to launch its initial public offering (IPO) for raising up to ₹1,590 crore, plans to foray into the Nagpur real estate market. The company is expected to launch a plotted development project spread across 37 acres, market sources told HT.com
The plotted development project by Kalpataru is likely to be launched at Samruddhi Circle, the starting point of 700 km long Mumbai-Nagpur Samruddhi Expressway in Nagpur, said market sources. Apart from Kalpataru, Godrej Properties launched its second plotted development project in Nagpur at Samruddhi Circle last year.
According to sources, Kalpataru has a 100-acre land parcel near Samruddhi Circle. It plans to launch 37 acres of plotted development as part of the first phase. This is likely to have 400 plots of sizes 1,200 to 4,000 sq ft range, said market sources.
According to local brokers, the per sq ft price of land near Samruddhi circle in Nagpur is between ₹3,000 and 4,000 sq ft.
Kalpataru has appointed ANAROCK, a real estate consultancy firm, as a strategic sales partner for the project.
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There was no response from Kalpataru.
“The ANAROCK residential team is excited to announce their strategic partnership with Kalpataru Limited in Nagpur for plotted township development. This marks a major advancement in our mission and highlights the strength of our collaboration in the real estate industry,” ANAROCK said in a LinkedIn post.
Kalpataru in August 2024, had filed for IPO to raise over ₹1,590 crore mainly to reduce debt. It would use ₹1,192.5 crore for repayment/prepayment, in full or in part, of certain borrowings.
The company has a portfolio of 40 ongoing, forthcoming and planned projects comprising 49.77 million square feet area. Of these 25 projects spread across 22 million square feet are currently underway.
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Why are developers rushing to launch plotted development projects in Nagpur?
There are several branded developers who are launching plotted development projects near the Expressway and the primary reason is that Samruddhi Circle is the Central-most part of the country from where every major city is just about 12 to 24 hours by road.
This is expected to boost the logistics and warehousing segment. Land prices in the outskirts of Nagpur city are in the range of ₹2,500 to 3,500 or 4,000 per sq ft, a local broker told HT.com
“Five years back the land rates in the area were in the range of ₹500 to ₹1,000 sq ft. These have shot up after the Mumbai Nagpur Expressway became operational. The National Cancer Institute, MIHAN-SEZ are all located in the area. With rapid urbanisation taking place in Nagpur’s outskirts and plans to expand the Metro corridor gaining ground, the real estate market in the area is on a roll,” the local broker added.
According to Maharashtra Real Estate Regulatory Authority (MahaRERA) data, the launches of plotted development projects in Nagpur district have doubled post Covid-19 pandemic. In 2019, a total of 84 plotted development projects were launched in Nagpur district. This increased to 142 in 2020, 117 in 2021, 203 in 2022, and 265 in 2023, as per the data.
The Nagpur real estate market has reported an increase in housing sales post the Covid-19 pandemic. According to the data shared by Liases Foras, a real estate research firm, the number of apartments sold in the primary market (first time sale) in Nagpur city has almost doubled from 1,383 in 2019-20 to 2,211 in 2023-24 (up to January 2024).
Primary sales stood at 1,383 units in 2019-20 and these were valued at ₹486.32 crore. This went up to 1,563 units in 2020-21 and was valued at ₹539 crore. In 2021-22, the units sold stood at 2,332 and were worth ₹833 crore, followed by 2,543 units in 2022-23 valued at ₹1,207 crore, and 2,211 in 2023-24 (up to January 2024) valued at ₹1,257 crore.
