Gurugram: Sobha inks deal to construct residential project

Bengaluru-based realty developer Sobha Ltd has entered into a joint development agreement with a Gurgaon-based firm to develop a residential project in Sector 63A on a 12-acre site, according to sources familiar with the matter. Sobha is already working on two projects in Gurgaon, making this its third.

Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE, remarked that the Gurgaon residential market continues to attract significant interest from developers due to strong end-user demand dynamics. He noted that the Golf Course Extension is emerging as the epicentre of luxury living, featuring a range of high-end residential condominiums, office parks, schools, and retail malls.

One source familiar with the deal stated that joint development agreements (JDAs) represent an asset-light model for developers looking to enter new markets and develop projects. They highlighted that, in Gurgaon, where acquiring land is becoming increasingly difficult, joint development is the way forward.

Shalin Raina, Managing Director of Residential Services for Cushman & Wakefield, explained that the Golf Course Extension has quickly become one of the most sought-after real estate micro-markets, attracting both investors and developers. He noted that the market has experienced exponential growth, driven by the presence of top-tier developers setting new quality standards and significant infrastructure improvements, including well-maintained roads, ample parking, and reliable public utilities.

Sobha plans to launch approximately 9 million square feet in FY25, with the remaining launches scheduled subsequently, representing a 30% increase from the previous year's 7 million square feet. The company stated that it is actively working to bring the remaining land bank into project stages, estimating a potential of between 25 million to 30 million square feet. They intend to continue adding to future launches as work progresses throughout this year and the next.

Additionally, the company mentioned that it had added two projects in Gurgaon?one in Sector 99 and another in Sector 63?both of which are expected to launch within the next 12 months.

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