Pune Real Estate: Manufacturing Companies Eye Realty Market
Small manufacturing companies are increasingly eyeing the growing real estate market as it turns out to be a goldmine for property developers in the country. At least half-a-dozen companies have either announced real estate projects with their partners or monetised their prime land assets in the last three to four months.
The reason: Home prices in cities like Mumbai and Pune have shot up surpassing the record levels of 2007-08, after seeing a drop of 30-40 per cent last year as home buyers postponed purchases.
Textile company Arvind today said it will develop 10,00,000 square feet of residential complex in Ahmedabad, with its joint venture partner B Safal Group. The land is owned by Ashoka Cotsyn, a unit of Arvind. Arvind already announced its plans to unlock around 600 acres of land in and around Ahmedabad and floated a separate subsidiary Arvind Infrastructure to pursue its real estate dreams.
Mumbai-based cable manufacturer Cable Corporation of India (CCI) is also looking at developing real estate projects across western India. Its maiden project in Borivali area of Mumbai is expected to cost around Rs 1,000 crore. Incidentally, the company’s Borivali land used to house its main plant will be shifted to Nasik in Maharashtra.
Hiten Khatau, chairman and managing director of CCI said the company has received booking for 70 apartments in its Mumbai project where it will develop 700 flats. Recently, the Rs 3,500-crore steel wire maker Usha Martin launched an affordable housing project in Boisar, on the outskirts of Mumbai, and plans to launch similar projects in Pune and Bangalore by the year-end.
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