Ahmedabad-based realty developer Savvy Group has forayed into the Mumbai property market and is planning to invest over Rs 2,000 crore to acquire and develop projects in the country’s biggest and most expensive real estate market in the next few years.
To begin with, the company will be investing around Rs 750 crore to develop two projects it has acquired including a mixed-use and a residential redevelopment project in the city’s western suburb of Andheri and central suburb Ghatkopar.
The company has acquired a land parcel spread over an acre on Parsi Panchayat Road in Andheri (East) and has also inked an agreement to redevelop a large housing society, Sindhu Baug Society, spread over nearly 1.5 acres in Ghatkopar.
Besides, the company is also in talks to acquire more greenfield and redevelopment projects in Mumbai through both joint developments and on an outright basis.
“After nearly three decades in the real estate market, we are making a humble beginning in a high-value market like Mumbai. In the backdrop of the Indian economy’s growth prospects and the commercial capital being at the forefront of the same, we are looking to engage more over here,” Jaxay Shah, CMD, Savvy Group, told ET.
Both the projects in Andheri and Ghatkopar are estimated to have a total development potential of over 300,000 sq ft.
“We have already finalised the plan, layout and have secured approvals for the Andheri project and the same is in the process for the Ghatkopar project. The construction of both the projects is expected to start soon and are scheduled to be completed in the next 3-5 years,” said Shalvi Shah, associate director, GIFT and Mumbai projects, Savvy Group.
The Andheri East Project, Merushikhar, will be a mixed-use project with commercial and residential developments with a total construction area of 100,000 sq ft. The company is planning to develop apartments with one, two, and three-bedroom configurations here with retail and commercial units on the ground and first floor.
The residential redevelopment project in Ghatkopar, with existing 90 members of the housing society, will be a premium development with configurations of large three and four-bedroom apartments. Total construction area in this project will be over 200,000 sq ft.
Savvy Group has so far completed over 25 projects across townships, residential, commercial, retail, golf, special economic zones (SEZs), and hospitality segments. It currently has projects spread over 3 million sq ft under various stages of development.
Additionally, it is developing a 60-acre sports-living township in the heart of Ahmedabad. The company also has a golf-centric township spread over 900 acres on the outskirts of Ahmedabad under development.
Several prominent real estate developers have entered the Mumbai property market in the backdrop of strong demand, sales momentum, and potential of robust returns.
The Mumbai property market has been setting new benchmarks with real estate transactions almost every month. In 2022, it scaled a new peak despite rising mortgage rates and property prices.
Annual property registrations during the year moved above 121,000 deals, the highest ever, even without the support of lower stamp duty that was made available by the state government during the pandemic period.
The uptrend continued in January too. It has been the second-best January in terms of the number of registrations after January 2021 when the benefit of lower stamp duty was available, and the best January yet in stamp duty collections.