The Prestige Group has more than three decades of experience in the real estate industry in the country. The company is known for its high-quality and creative projects. The company has branched into many fields. It is now a leader in the industry. It has a presence in many areas.
With a large number of projects and high customer trust, the company is going from strength to strength. It is likely to meet its pre-sales projection of Rs 12,000 crore in FY23. The financial services company, Motilal Oswal, predicts that it will exceed this in FY24. There will be revisions in these estimates as new projects are launched.
Mr. Irfan Razack, the CMD, has said that the Prestige Group is likely to exceed Rs 12,000 crore. He said that the company had already had pre-sales of Rs. 6500 crores for the first half of FY22. The teams are working hard to bring in new products. They are working towards getting quick approvals and then launching the projects.
There has been an overall rise in the price of materials for construction. Although the prices of cement and steel have gone down a bit, other commodities have gone up. These have resulted in an increased cost of construction. The Prestige team has been working hard to ensure that there is minimal spillage and wastage so that costs are controlled.
The Prestige Group is, therefore, able to offer buyers homes at good prices. The company is making sure its bottom line is stable. It is cognizant of what buyers want. It is working to make prices reasonable. The pricing has to be right to get more customers. The homes have to be affordable, irrespective of the segment.
The prices of properties upon launch are low. It is at this stage that many sales happen. Prices increase as the project nears completion. A completed project has more demand. It is the stage when the builder gets a full realization of the value. The company relies on these sales to get the funds to sustain the development of projects.
Mr. Razack was asked if this could be an upswing and if it was rock bottom at the peak of the pandemic. He replied that price always corrects itself. It is especially true for real estate prices. Inflation causes a rise in the price of properties. Property bought 10 years ago would cost more today than it did then.
Projects take three to five years. The Prestige Group makes sure that all its projects are completed in around four years. In this way, operations will be efficient. It is also beneficial to homebuyers because they can see the prices of their property rise. If they hold on to their properties until completion, they stand to make a good profit.
Sales volumes have increased. It is the biggest shift that has happened after COVID. Operational revenues have gone up by 100%. A new method of accounting is used for top-line sales. It is called an operational result, but the accounting does not happen until the project is finished. The buyer then gets the title.
It is very important for builders to make sure that projects are completed on time. The Prestige Group teams work in tandem to ensure this. The liaison team, marketing team, and production team work together. Once a property is sold, it is built quickly and handed over. It is at this point that revenue is collected by the company.
The company aims to have a short production time. It will ensure that the company earns well and quickly. The policy, along with smart pricing of properties, will propel the company on toward its goal of the Rs. 12,000 crore mark.
Prestige Group new prelaunch apartment Prestige Park Grove.