Real Estate Sector Signals Recovery
The real estate sector has endured a period of stagnation, but recent developments indicate a resurgence.
Major Players Announce Investments
Real estate giants like Supertech and Ansal API have announced new projects worth Rs. 8,000 Cr, aiming to invest this amount over the next four years.
Future Prospects and Debt Reduction
Some builders are now seeking to cut their debts by selling properties, although experts predict the coming years will be boom years for the real estate sector.
DLF, one of the largest real estate developers, is aiming to reduce debt in the coming years. Most companies anticipate better sales despite rising housing prices.
Supertech's Ambitious Plans
Supertech has unveiled plans to invest Rs. 5,500 Cr over the next few years. The firm aims to achieve Rs. 10,000 Cr in annual revenue by 2015, up from its current annual revenue of Rs. 2,500 Cr. The group intends to invest primarily in North India.
R K Arora, Chairman and MD of Supertech, has stated that the group aspires to become one of the top real estate players by 2015. He believes the investment of Rs. 5,500 Cr will help achieve this goal.
The real estate major plans to invest mainly in housing projects, focusing on New Delhi and NCR regions. It also has plans to expand into Uttarakhand. Currently, Supertech owns 1,000 acres of land in the Northern states and plans to acquire another 400-500 acres.
Mr. Arora said, "We will further acquire another 400-500 acres of land. An amount of Rs. 2,500 Cr is set aside for this."
Ansal Group's Debt-Free Strategy
NCR-centered Ansal has announced its plan to invest Rs. 1,500 Cr in real estate. The company aims to become debt-free by 2015. The current debt stands at Rs. 1,350 Cr, which is expected to reduce to Rs. 1,100 Cr by the end of this fiscal year. The company plans to repay its debts using internal cash flows.
Vice Chairman and MD, Mr. Ansal, said the company aims to be absolutely free of debt by the end of the fiscal year 2015.
Mantri Realty's New Launch
Mantri Realty has announced an investment of Rs. 750 Cr and plans to develop three housing projects in Karnataka and Maharashtra over the next 2-3 years.
Sunil Mantri, Chairman of Mantri Realty, stated that the group will launch its projects next year, with most of them located in Western India.
DLF's Upcoming Projects
DLF plans to launch 3-4 projects in Gurgaon in 2013.