Real estate developer MAIA Estates plans to invest Rs 4,300 crore to develop 4.5 million square feet of property in Bengaluru by the end of 2024 and diversify from building luxury homes to the upper-mid segment.
“We have already developed 6 lakh square feet in the city and plan to launch another 1.2 million sq. ft this year. By the end of the next year, we will have launched about 4.5 million sq. ft,” Mayank Ruia, founder of Bengaluru-based MAIA Estates, told Moneycontrol.
The total development includes about 3 million sq. ft of residential property and 1.5 million sq. ft of office space. Additionally, Ruia said about 3.5 million sq. ft of space will be developed for homes by 2025.
Ruia said MAIA Estates has already raised over Rs 1,200 crore from investors, which will be deployed for the new developments. Remainder of the funds will come from sales to customers and construction finance on the residential side of the business.
“For the commercial business, we will be relying on construction finance beyond our equity and the capital raised from other investors,” he said.
The residential launches this year are planned in northern Bengaluru, the city centre, and the south. MAIA Estates plans to develop 1.5 million sq. ft of office space in Hebbal in north Bengaluru. About 90 percent of the development will be standard office space with the rest in the flexible option, he said.
Diversification
Ruia said the company's developments have so far remained in the flagship luxury segment, with top-end apartments costing as much as Rs 20 crore.
“We are diversifying to the upper-mid segment in the bracket of Rs 4 crore and above for Bengaluru. We understand this segment much better today, and most of our new launches will be in this category,” Ruia said.
He said Bengaluru's luxury housing segment, which had been on a slowdown last year, appears to be recovering.
"However, this year, when prices suddenly shot up, prospective buyers and even investors have felt the need for investments," Ruia added.
The company is currently completing construction of its flagship luxury property called 27 Summit near the city centre, where apartments start at Rs 10 crore and go up to Rs 20 crore for a 5,600 sq. ft flat.
"However, today our smaller apartments start at Rs 1.5 crore in city centres. Most of our launches in future will be in the Rs 4 crore segment, which I believe is the upper-mid segment for Bengaluru," Ruia added.
While the city centre in Bengaluru attracts the most demand for luxury housing, areas such as Indiranagar, Sadhashivnagar, Koramangala, and Jayamahal remain top choices for this segment, he said. Ruia said the northern parts of Bengaluru such as Hebbal have become a hub for luxury apartments.
"The luxury segment in Bengaluru will remain afloat for several reasons. Several parts of the city today are not completely driven by the IT sector. On the northern side of the city, we see more demand for luxury housing from sectors like banking, financial services and insurance, trader communities, manufacturing and medical fields," Ruia said.
However, in the city centre, with fewer apartments and land plots available, demand in the luxury housing segment has surged, pushing prices higher. "In the city centre, our apartment costs are going to Rs 27,000 per sq. ft. We are even redeveloping several old apartments with modern luxury components for about Rs 1-3 crore. Even then, with market sentiment in mind, I believe people are cautiously optimistic in investments," Ruia said.
Going to Chennai
MAIA Estates also plans to enter Chennai with the launch of residential property in the mid-upper segment by the end of this year. Ruia said flexible homes – which owners can design to their preferences – have been a major push, especially for the luxury segment in Bengaluru.
"In our project 27 Summit, we have at least three bedrooms in a four-bedroom apartment with flexibility options. The walls can be collapsed or merged with another space. This has been most sought after by homebuyers," Ruia mentioned.
Ruia said developers will have to bear the higher costs of sustainability and flexible options for a vision of green real estate in India. With limited sustainable construction techniques available in India, the company tries to minimise the construction timeline.
"We have moved to completely tech-oriented construction where we constantly monitor the work through video cameras. Our construction sites are efficiently connected to machines that can be monitored remotely. In the long run, with more acceptance from people, we will see a better impact," he added.