Real estate developer Concorde will release a total of 5 lakh sq ft(or 0.5 million sq ft) of commercial space this year and will invest ₹225 crore over the course of 2 years, according to a top company executive. The move is in line with the company’s plans to alter the composition of its portfolio, which consists of both residential and commercial segments.
Speaking about the aggressive expansion of its commercial segment, Grishma Reddy, Director, Concorde, told businessline that it will focus on micro markets that are already established and will be playing the mid-segment range as they estimate a huge demand in the segment. Going forward, it plans to release 1.5–2 million sq ft of commercial space in the city.
The company generated revenue of ₹400 crore in FY23 and has set aside ₹225 crore specifically for its commercial business, with ₹100 crore allocated for the current year and ₹125 crore earmarked for the following year.
“We will focus on establishing Grade A office space in the micro markets of the city. Currently, we have three projects in the pipeline for this year,” she said.
Expanding further on its optimistic outlook for the development of its commercial space, the director emphasized that aside from the significant opportunity it presents, there is also a robust investor sentiment supporting the venture.
Looking ahead to the future, the company has set its sights on generating 70 percent of its revenue from its residential division and the remaining 30 percent from its commercial division. By fiscal year 2027, the company’s ambitious goal is to achieve an annual turnover of ₹600 crore.
In the residential market, the company operates within the mid-to-premium segment, providing apartments ranging from ₹60 lakh to ₹1 crore. The majority of these apartments fall within the size range of 1,300–1,800 sq ft and are available in configurations of 2 and 3 BHKs. In addition, a configuration that has gained popularity after the Covid-19 pandemic is the 2 BHK apartment with a study.
“As far as the residential arm is concerned, we will launch a total of 16 lakh square feet across three projects this year. Across the three projects, we will launch around 1,100 apartments,” noted BS Nesara, Chairman of the company.
The real estate developer largely operates on an asset-light model across all segments. Currently, it is ongoing projects include – three residential apartment complexes, three plotted segments, and one commercial project. This year the company is sitting with ₹500-600 crore worth of inventory across all its projects.
Concorde is a Bangalore-based real estate developer and has developed 25 million sq ft. of residential and commercial real estate to date.
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