Embassy Group, recorded one of its best ever performances in the financial year 2022–23 by clocking revenues of Rs 1,370 crs for its residential business, resulting in a 210% growth y-o-y. The company sold a total of 10.73 lakh sq. ft. in FY23, boosted by continued buyer interest in luxury housing and a growing preference towards ready-to-move-in projects, larger home spaces, and hotel-inspired amenities. Renowned for its luxury residential developments, Embassy Group’s projects start at a price tag of Rs. 2 crore plus, with an average price realisation of Rs. 11,615 per sq. ft., one of the highest in the Bengaluru real estate market.
Speaking on the growth of the residential business vertical, Reeza Sebastian Karimpanal, Executive President – Residential Business, Embassy Group, said, “With a strong focus on project completion, Embassy Group achieved healthy sales bookings through FY23, supported by sustained homebuyer interest for high-quality products. Our efforts were aimed at the sale of our existing projects to pave the way for upcoming ones in FY24. The growth in revenue is a clear indicator of positive homebuyer sentiment and an increased preference for luxury projects in Bengaluru, the third top-performing luxury housing market in India after Mumbai and NCR.”
Bengaluru’s contribution to total luxury housing sales has doubled from the previous year’s 5% to 10% in 2022. When it comes to the luxury market in Bengaluru, the epicentre of growth has been North Bengaluru, home to global investments and luxury lifestyles. According to a report by Knight Frank, North Bengaluru recorded the fastest sales growth of 134% Y-o-Y during H2 2022, followed by the South and East.
Speaking about the renewed focus on the residential business and plans for FY24, Aditya Virwani, COO of Embassy Group, stated, “The last financial year has been characterised by a focus on our residential and commercial businesses in equal measures, investing in and strengthening both asset classes. With a shift in the real estate industry towards fewer dominant players in each region, consolidation seems to be a profitable opportunity for current developers to address the increasing demand for housing. We will continue to be bullish on the niche but rapidly flourishing luxury market, as well as aim to provide affordable world-class housing for India’s growing middle class. We are currently engaged in ongoing negotiations for joint ventures, joint development agreements, and low-capex acquisitions to further strengthen our project pipeline across cities. We are optimistic that significant revenue generation will enable growth and debt reduction, leading to an augmentation in growth potential.”
He added, “Our aim is to increase our new project pipeline to launch at least four new residential projects in FY24, with a development potential of 5 million square feet and an expected gross revenue of over Rs. 3,000 crore.”
