Oberoi Realty has purchased a land parcel of around 15 acres (14.8) from the Ireo Residences and Others at a whopping rate of 597 crores. The plot is located in sector 55 Gurugram, which is an upcoming luxury residential hub. This is the first time that this major realty developer is stepping out of its den i.e. the MMR (Mumbai Metropolitan Region ) Mumbai, the financial capital of India.
Oberoi Realty has bought the land from Ireo Residences and others to build an Ultra Luxury Residential Project. According to the terms of agreement the land will also include the area of local dwellers and the existing owners. Given the track record of the company, this project will be a masterpiece as it has already developed in the MMR. It is estimated that after the completion of the project, the company will be holding an FAR (Floor Area Ratio) of 2.6 million sq. ft. in the project.
Oberoi Realty’s Mega Expansion
The company has an impressive portfolio with over 10 MSF(Million Square Foot) of projects already delivered. Apart from this the company’s ongoing projects are also estimated up to another 10 MSF. Oberoi Realty has played an important role in the development of the Mumbai Metropolitan Region. It has provided many beautiful and luxury projects to the Mumbai Skyline. The Company also started to launch projects in the eastern suburbs of Mumbai, Mulund and Thane. Oberoi Realty has also kept 2 projects in the launch pipeline as well.
Since its inception, the company has stayed in the niche of ultra luxury housing, condo and apartments. The prices of the units start at Rs. 40000 per sq. ft. and some of the ultra premium residences also fetch around 1 lac per square feet making it a major real estate developer. The company is finally trying to expand to different Real estate markets in the country. The reason for this expansion is the boom in the real estate market especially in the ultra luxury real estate market of India. These markets have a lot of potential and can offer great returns. These markets of luxury real estate are Delhi NCR, specially, Gurugram, Bangalore, Hyderabad etc.
The estimated market cap of this Mumbai based company has already touched 30000 Crores of Rupees. Decisions to expand will give this number a significant boost. The CEO and MD of the Real estate Company is Mr. Vikas Oberoi. He has attended Harvard Business school.
This trend is not only restricted to the Oberoi Builders. But a lot of companies are on this expansion trail. Many South India based companies are now entering the Mumbai Real Estate Market to claim their piece of the cake.
The Reason of Interest in Gurgaon:
The Graph of Gurgaon’s Real Estate Market is constantly on the rise for more than a couple of decades now. There are many reasons to it some of which are listed Below:
Proximity To Delhi: Gurgaon is the most developed neighbour of Delhi and also very well connected with it. The IGI Airport is nearer to Gurgaon than a lot of areas of Delhi itself. Delhi being the political capital of India, needed a satellite city to absorb the population growth. Gurugrams’s Development solved the purpose. Not only it absorbed the burden of population but it also served as an investment heaven.
The IT Sector: The IT sector is another reason for the prolonged growth and expansion of the city as it provided the required capital. The investment from around the world provided capital for the infrastructural development of the city. The city hosts more than 250 of the Fortune 500 companies which provide jobs to the cream of our colleges.n These people need accommodations which leads to Real Estate Development in the city.
Serene Aravali Foothills: Gurgaon is situated in the foothills of the Aravallis providing a majestic view on the outskirts. The most Expensive Residential area of Gurgaon is Golf Course Road. Which on one side faces the sprawling developments of the city and on the other side faces the unending expanse of majestic Aravalli views. These views not only add to the aesthetics of the city but also act as a sink to the pollution of the city. But recent cutting of trees and mining rocks from the Aravallis raises a question mark on this and can become a major problem in the future.
There are a lot of reasons including connectivity, availability of land, Government’s policies and many others. But these were the most suitable for this blog.
