UAE-based realty developer Emaar is planning to invest up to Rs 2,000 crore in Mumbai and its surrounding areas in the next six-seven years, a top official said on Monday.
The group, known for projects like Burj Khalifa, has stayed away from the Mumbai Metropolitan Region (MMR) despite being present in India for nearly two decades.
Emaar India's Chief Executive Kalyan Chakrabarti said there is no specific reason to stay away from Mumbai for so long. He added that the group is attracted to the megapolis because it considers it as the deepest and strongest realty market which will be vibrant for decades to come.
The company is aware about the market realities in the space-crunched city, and is open for looking at both societies and slum redevelopments along with any fresh development proposals, he said.
The company plans to invest USD 1.85 billion (around Rs 15,500 crore) in realty developments across the country in the same time period, he said, adding that capital is not a constraint for it given the backing of a parent company willing to invest.
Therefore, it is not keen to aggressively pursue opportunities on the capital markets, including an initial public offering or sponsoring a Real Estate Investment Trust (REIT).
Elaborating on strengths of Mumbai, Chakrabarti said Mumbai is home to one of the best talent bases in the country, neatly linked to the global trade and offers a great opportunity for realtors when coupled with the massive infrastructure being created in the megapolis.
The company will continue to serve the mid-market to luxury opportunity in the financial capital as well, wherein an apartment unit will typically cost upwards of over Rs 4 crore, he said.
The Gurugram-headquartered company already has a presence across various other Indian cities including Hyderabad, Indore and Mohali.
Around 85 per cent of its revenues come from the residential segment while the commercial segment accounts for the rest at present, he said, adding that the company will have over 8 million square feet of space under construction by December, which will have to be delivered in four years.
The company announced its maiden venture into the Mumbai market, with a 84-villa community in nearby Alibag, which is a weekend getaway for Mumbaikars.
Chakrabarti said the company will be investing Rs 400 crore for constructing the villas, which will be spread over 25 acres of land. He, however, did not disclose the cost of buying the land.
Over three-fourths of the land in the Alibag project christened 'Casa Venero' will be free of any structures, he said, adding that costs for a three-bedroom villa will go upwards of Rs 9 crore while a four-bed one will go up to Rs 16 crore.
He said the company chose Alibag for its maiden project in the city due to the connectivity which it offers after the construction of the transharbour link and the new airport.
