Sobha Dreams is the new name of the Mid Segment Brand launched by Sobha Developers
Sobha Dream series is the new name given to the mid segment residential project division which the company has forayed into. The company was known for its luxury projects but Sobha Dream catering the mid segment will develop residential units priced lesser than Rs. 90 lakhs. Apartments and homes more than Rs. 90 lakhs will be sold under the brand name of Sobha developers.
The maiden project of Sobha Dream has already being launched named Sobha Dream Acre which is priced at Rs. 5, 500 per sq. ft. The company’s usual rate is Rs. 6, 000 per sq. ft. The company normally constructs luxury apartments of 3 BHK with a minimum area of 1, 700 sq. ft. but will now construct 2 BHK apartments of area ranging from 400 sq. ft. to 1100 sq. ft. each.
The sources from the company said that after the completion of the project it will fetch them revenue of Rs. 4, 200 crores at the prevailing price rates. This maiden project is planned to have been located in the outskirts of Bengaluru and will have 7, 000 units in total. The total time estimated to complete the project is 7 years. In the first phase, 2, 200 units will be built and is proposed to be completed in two years. This whole project is on an 81 acre land and the company expects that this project will fetch them considerable volume of revenue and simultaneously cater to the aspirations of the salaried employees of the IT sector of Bengaluru. The company sources said that they will be using pre-cast technology for the construction of the project.
The company has plans to replicate such models in other cities too like Chennai and NCR. The top management expressed desire of capturing a larger market share in this customer segment of the Indian realty market.
The global realty consultant firm, Cushman and Wakefield stated that the mid income residential segment is the most favourite for the developers and this segment accounts for two thirds of their total launches. The year, 2014 recorded an increase of 5 percent in the unit launches in the mid segment. The report said that the residential property launches across all the top 8 cities of India declined by 12 percent year on year as on 2014. The total launches in 2014 was about 1, 53, 000 units. Out of this number of total launches the three cities which topped the list were Bengaluru with 27 percent, NCR with 17 percent and Mumbai with 16 percent. These three cities according to the estimates comprises of 60 percent of the overall new launches in the nation in 2014.
Talking about the second largest developer of Bengaluru, Sobha developers, the company sources said that currently they have 49 ongoing projects in the eight top most cities of India with area developable being of the order 31.24 million sq. ft. There are about 8.62 million sq. ft. of saleable area in the total volume. The land bank of the company is of the order of 2, 500 acre and the company is currently maintaining a debt equity ratio of 0.7 as per the figures of 2014.