Sumadhura Group, a real estate developer active in South India, has said that it has acquired 40 acres in Bengaluru for approximately ₹800 crore, setting the stage for a revenue potential of up to ₹6000 crore residential project pipeline to cater to the demand for housing units in Bengaluru.
The four land parcels acquired recently, are a combination of both solely owned and joint-development projects located in Bengaluru's high-growth corridors, including emerging areas in East and south-West Bengaluru, the company said.
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Sumadhura Group plans to develop four residential projects on these sites - three in the east and one in south west Bengaluru over the next five years with an estimated potential of attaining six million sq ft of saleable area, the company said.
This expansion assumes significance in the booming residential market, as housing prices in Bengaluru have risen by 18% year-on-year in the third quarter, driven largely by demand in the Periphery and Outer East region, according to a report released by CREDAI, the real estate industry body, Colliers and Liases Foras said.
A Cushman and Wakefield report also said that nearly 8,850 residential unit launches took place in the first quarter of 2024, reflecting a 14% annual increase. The eastern submarket (primarily Whitefield) accounted for another 35% of unit launches, maintaining its status as a key residential corridor across both mid-segment and high-end projects.
The land acquisition expands Sumadhura Group's Bengaluru and Hyderabad land bank to a significant 100 acres in FY 2023-2024.
“Our experience of over two decades in Southeast Bengaluru has provided invaluable insights into the region's growth trajectory. That knowledge, coupled with the booming demand in the residential market fueled majorly by the IT sector, gives us the required push and enough confidence to strengthen our footprint in this emerging high-promise market,” said Madhusudhan G, Chairman and Managing Director, Sumadhura Group.
“We look forward to launching the projects in the next three quarters and completing them in the next 3-5 years,” he said.
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Sumadhura has delivered more than 50 projects in its area of operation spanning over 11 million square feet. Currently, it is in the planning and construction stages of up to 40 million square feet.