BY OUR HOUSING CORRESPONDENT | MUMBAI: Tata Housing is following the footsteps of Godrej Properties in taking up redevelopment projects in Mumbai. This, according to a highly placed company official, will be the best way to enter the Mumbai market in its maiden attempt.
Tata Housing to enter Mumbai market
Tata Housing Development Company Ltd has started operations in several cities countrywide, but had always kept away from the real estate capital of India — Mumbai.
“We expect to start doing premium housing projects in Mumbai as we have been approached by several large co-operative housing societies in the Western suburbs of Mumbai such as Andheri and Bandra for redevelopment of the societies. However the issue is that in such redevelopment projects, societies normally call for bids which makes it quite competitive,” Brotin Banerjee, Managing Director & CEO at Tata Housing Development said.
The company hopes that with several societies having a bad experience when dealing with lesser-known realtors, Tata Housing with its reputation for ethical behaviour would get a preference even if its bid is somewhat lower than others.
“Unlike certain other developers we cannot cut corners or engage in illegal activities as these would violate the Tata code of conduct. But we believe that given the recent controversies that illegal buildings have gotten into it would be safer for societies to go with developers who don’t bend rules and give a better quality housing product,” said Banerjee.
The company expects the first such development projects to be signed up over the next 6-9 months. “These projects would help us ensure that premium development brings in around 60 per cent of our revenues this year even though they will constitute only around 40 per cent of the number of units being constructed,” said Banerjee.
The company currently has 45-50-million square feet of area under development. This is split across value and premium housing respectively and includes around four to five million square feet of commercial and office development.
“Under the Smart Value Homes and New Haven brands itself we have 15,000 homes under construction,” he added.
By the end of this fiscal year the fiem hopes to have operations in Kolkata, Mumbai, Pune, Ahmedabad, Khandala, Chennai, Hyderabad, Bangalore, Chandigarh and the National Capital region.