Assetz enters middle-income housing segment in Bengaluru

Assetz Property Group, a Singapore headquartered company, has begun to invest $120 million it received from another Singapore-based firm Equis, in Bengaluru realty market.

The company is entering mid-income housing segment by targeting working professionals with an annual income of ₹5–12 lakh.

“At the moment, Assetz Lifestyle, which is the execution company, has identified few land parcels in Bengaluru to take up projects,” Mallanna Sasalu, Managing Director, Assetz Lifestyle, told BusinessLine .

“The funding ($120 million) we got from Equis is mostly for development of infrastructure. The investment by Equis is paid back on completion of the project when apartments are sold,” he added.

After the land is acquired, infrastructure development takes place, then follows the construction of the apartments.

For this, Assetz is looking at development of 5-8 acres along the growth corridors and the ring road belt requires more of magnitude, largeness, more skill and lifestyle.

By lifestyle, it is the mini-township and not the gated community with a secluded place.

Sasalu said “the company has made progress on land acquisition. We have identified land parcels of 20 acres to 25 acres around Sarjapur belt and are also evaluating few properties in other parts of Bengaluru west and north.

The 20-25 acres of land in Sarjapur has been bought and land acquisition is under progress.”

Justifying the Assetz decision to enter mid-market segment, Sasalu said “As per the Urban Population Study conducted in Bengaluru, among the urban population of home-buyers, 24 per cent belong to this category and the concept of lifestyle caters to this particular segment.”

Bengaluru as an organised real estate market sells 50,000-60,000 units an year. Mid-income housing or aspiration segment comprises 24 per cent of the total market i.e., sales of 15,000 units.

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