Premium real estate developer, TARC is eyeing a ₹1,500 crore sales value in FY24 - a near 200 per cent increase over last fiscal - as it looks to get its residential projects off the ground primarily in the Delhi – NCR areas. The company which raised money from Bain Capital by way of NCDs, is looking to clock a topline of nearly ₹7,000 crore from sales of some three-odd projects – two in New Delhi and one in Gurgaon.
The BSE-listed company reported project sales of ₹520-odd crore in FY23.
According to Amar Sarin, MD and CEO, TARC Ltd, of the three projects, one launched in October in Delhi, and another in Gurgaon, the third will be launched in the national capital between September and October. These will be high-end luxury projects with delivery timelines being spread over the next two to four years.
“The outlook for residential sales continues to be strong, and a very positive one. The cyclical slowdown the sector witnessed since 2013 saw some changes during and post Covid. There was pent-up demand and people wanted to upgrade which led to improved numbers. We play in the high-end segment and plan to be there. So there is little effect of any slowdown in growth in that segment,” he told businessline.
“With the sector witnessing a positive outlook once again, money from other asset classes are being re-invested into real estate. Appreciation across projects are also being witnessed again,” Sarin explained.
For instance, the project which it launched in October, in Delhi, saw bookings start at ₹15,000 per sq ft, which subsequently appreciated to ₹25,000 per sq ft by the end of the fiscal (March 2023).
Focus on residential projects
According to Sarin, the company will currently focus on high-end offerings in the residential sectors across Delhi and Gurgaon markets and then expand in Noida.
“In the next two years, we would look at residential offerings primarily. And maybe, some office or commercial place later,” he said, adding that TARC’s land bank currently includes plots for residential usage, mixed-use, hotels, and also for commercial use.
The company is also open to equity deals in new projects, which include development and sale partnerships and also investments in upcoming projects.