Bangalore Based Embassy Group Records Brilliant Residential Earnings Fiscal Year 2023

The Bangalore-based Embassy Group, one of the leading real estate developers in India, achieved one of its greatest residential revenue growths ever in fiscal year 2023, recording revenues of Rs. 1,370 crore, a 210% increase year-over-year.

Demand for luxury housing and a growing preference for ready-to-move-in projects, larger living spaces, and hotel-inspired amenities drove the sale of 10,733,000 square feet in FY23.

Embassy Group's Executive President – Residential Business, Reeza Sebastian Karimpanal mentioned the following:

"With a strong emphasis on project completion, Embassy Group achieved robust sales appointments through FY23, supported by purchasers' sustained interest in high-quality products. Our concentration was on marketing extant initiatives in order to pave the way for upcoming ones in FY24. The increase in revenue is a clear indication of positive homebuyer sentiment and a growing preference for luxury projects in Bengaluru, India's third-best performing luxury housing market after Mumbai and NCR."

Embassy Group's average price realisation for properties over Rs. 2 crore is Rs. 11,615 per square foot, which is among the highest on the Bengaluru real estate market.

Bengaluru's share of luxury housing transactions has increased from 5% in 2021 to 10% in 2022. North Bengaluru, which is home to global investments and luxurious lifestyles, has been the epicentre of growth for Bengaluru's prestige market. North Bengaluru experienced the highest sales growth in the second half of 2022, at 134% year-over-year, followed by the South and East.

"The previous fiscal year was characterised by a focus on both our residential and commercial businesses, with equal emphasis on investing in and strengthening both asset classes. As the real estate industry transitions towards fewer dominant players in each region, consolidation appears to be a lucrative opportunity for current developers to meet the increasing housing demand. We will continue to be bullish on the niche but rapidly expanding prestige market, as well as seek to provide India's expanding middle class with accommodations of world-class quality at affordable prices. To strengthen our portfolio of municipal projects, we are currently engaged in ongoing negotiations for joint ventures, joint development agreements, and low-capex acquisitions.We are optimistic that significant revenue generation will facilitate growth and debt reduction, thus enhancing the company's growth potential." - Aditya Virwani, Chief Operating Officer of Embassy Group

The company plans to introduce at least four new residential projects in FY24, with a development potential of 5 million square feet and an anticipated gross revenue of more than Rs. 3 billion.