Oberoi Realty is planning to increase price of its residential projects by Rs 500-1,000 per sq.ft in Mumbai to boost its margins.
According to Mr. Vikas Oberoi, Chairman, Oberoi Realty, said, “We have already increased price of Oberoi Splendor Grande project by Rs 1,000 per sq ft. We are planning to increase prices of our other projects too in the near future by Rs 500-1,000 per sq ft.”
Mr. Oberoi also said, “Our company has witnessed consistent momentum in sales in the last 6 months despite the tough market conditions. We appreciate the transparency in the approval process being brought in by the authorities and strongly believe that this is in the long term interest for the sector, besides creating a level playing field for all the developers and stake holders. ”
After the price increase in October, Oberoi Splendor Grande is being sold at Rs 12,500 sq ft. The Oberoi Realty has sold 1.40 lakh sq ft till date in the project with a revenue of Rs 31.04 crore in the second quarter of 2011-12 and Rs 52.53 crore in the first half of 2011-12.
Oberoi Realty product in residential market is most sought-after. Given the company’s brand value, it may be able to sustain the price increase.
The price hike will definitely improve margins of the Oberoi Realty in the next quarter. The hike is not expected more than 10%. However, the volumes may remain flat in the coming quarter.
Meanwhile, the company has pipped Unitech to become the country's second largest real estate company after DLF in terms of market capitalisation. Oberoi Realty's market cap now stands at around Rs 7,372 crore, higher than Unitech's Rs 7,150 crore.
While DLF has retained its position as the country's most valued company with a market capitalisation of Rs 39,444 crore, Unitech has lost its long-held second position to Oberoi Realty. Ever since its listing in 2007, July DLF has been the India's largest real estate firm in terms of market capitalisation, while Unitech has been the second largest.
According to Mr. Vikas Oberoi, Chairman, Oberoi Realty, said, “We have already increased price of Oberoi Splendor Grande project by Rs 1,000 per sq ft. We are planning to increase prices of our other projects too in the near future by Rs 500-1,000 per sq ft.”
Mr. Oberoi also said, “Our company has witnessed consistent momentum in sales in the last 6 months despite the tough market conditions. We appreciate the transparency in the approval process being brought in by the authorities and strongly believe that this is in the long term interest for the sector, besides creating a level playing field for all the developers and stake holders. ”
After the price increase in October, Oberoi Splendor Grande is being sold at Rs 12,500 sq ft. The Oberoi Realty has sold 1.40 lakh sq ft till date in the project with a revenue of Rs 31.04 crore in the second quarter of 2011-12 and Rs 52.53 crore in the first half of 2011-12.
Oberoi Realty product in residential market is most sought-after. Given the company’s brand value, it may be able to sustain the price increase.
The price hike will definitely improve margins of the Oberoi Realty in the next quarter. The hike is not expected more than 10%. However, the volumes may remain flat in the coming quarter.
Meanwhile, the company has pipped Unitech to become the country's second largest real estate company after DLF in terms of market capitalisation. Oberoi Realty's market cap now stands at around Rs 7,372 crore, higher than Unitech's Rs 7,150 crore.
While DLF has retained its position as the country's most valued company with a market capitalisation of Rs 39,444 crore, Unitech has lost its long-held second position to Oberoi Realty. Ever since its listing in 2007, July DLF has been the India's largest real estate firm in terms of market capitalisation, while Unitech has been the second largest.
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