Arvind Group views 50% of online real estate transaction

Arvind SmartSpaces Limited (ASL), the real estate arm of the Arvind Group, is eyeing 45-50% of real estate sales through online mode soon.

Its digital sales have increased from just 6% in FY21 to 35% in FY22 for the organised real estate player, which has a presence in Bengaluru, Pune and Ahmedabad amid an industry average of 30% among the organised players.

Managing Director and CEO of Arvind SmartSpaces, Kamal Singal, said that its digital sales initiatives, including launching India's first end-to-end digital sales platform, resulted in over 35% new sales through digital channels, which also lowered the overall cost of sales. The company aims to touch 45-50 per cent of digital sales in the coming future.

Arvind SmartSpaces' digital platform will enable customers to view entire inventory listings and get complete information on the price per unit.

The customers can also view spaces within their potential home and will be able to experience the interiors and see the layout and entire inventory on the platform.

The company has launched the platform with Arvind Bel Air, a premium residential project in Yelahanka, Bengaluru, so the customers can book and purchase homes in various other locations.

According to Singal, digital sales have witnessed large traction from end-users of residential projects and non-resident Indians (NRIs). Over 85% of conversions in digital sales have been end-users, with 80-90% of Bangalore users being service sector employees.

Singal told the media that the company would also invest in new projects and pipelines amid the momentum of input cost rise slowing down. The company plans to raise Rs 300-400 crore of debt which should be enough to fuel future projects.

The company reported strong momentum in new sales with Rs 150 crore for the fourth quarter (Q4) ended on 31 March 2022, with strong traction for luxury villas at its existing project in Ahmedabad.

The company also reported a hike of 20% in its net collections of Rs 160 crore for this quarter, compared to the same quarter of the previous year. Arvind SmartSpaces hit a 72% year-on-year (YoY) growth in its revenue at Rs 257 crore for FY21-22 with a profit after tax (PAT) growth of 186% to Rs 25 crore during the year.

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Also read: Arvind SmartSpaces acquires 35 acres of land for Rs 100 cr in Pune

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