Prestige Group Targets ₹36,000 Crore Pre-Sales In Fy27 And Plans 43 New Project Launches As Cmd Irfan Razack Warns Of Hyderabad Oversupply While Expanding Into Six Cities
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Prestige Group Targets ₹36,000 Crore Pre-Sales In Fy27 And Plans 43 New Project Launches As Cmd Irfan Razack Warns Of Hyderabad Oversupply While Expanding Into Six Cities

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Prestige Group Targets ₹36,000 Crore Pre-Sales in FY27 With Aggressive Expansion Across Six Cities

India's second-largest listed real estate developer, Prestige Estates Projects Ltd, has set an ambitious target of ₹36,000 crore in pre-sales (sales bookings) for FY27, representing a 20% growth over FY26's record ₹30,024 crore. Chairman and Managing Director Irfan Razack announced this expansion strategy in early June 2026, signaling the company's confidence in sustained housing demand despite mounting market headwinds. The company plans to leverage a robust pipeline of launches across Bengaluru, Mumbai Metropolitan Region, Delhi-NCR, Hyderabad, Chennai, and Goa to achieve this target.

Prestige's aggressive growth plans come on the heels of an exceptional FY26 performance, when the developer achieved a 76% year-on-year jump in sales bookings and nearly doubled its total income to ₹13,195.5 crore. Net profit surged to ₹1,195.5 crore from ₹467.5 crore in FY25. To support the FY27 target, Razack revealed that the company maintains a ₹60,000 crore worth of launch pipeline, though the actual deployment will depend on regulatory approvals and market conditions. The company has delivered 313 projects spanning 206 million square feet and maintains a pipeline of 128 projects across 195 million square feet.

Hyderabad Oversupply Warning Tempers Growth Narrative

Even as Prestige charts expansion, Razack sounded a cautionary note on market conditions in key cities, particularly Hyderabad. In August 2025, the billionaire entrepreneur warned that the tech hub is experiencing significant oversupply of office spaces, apartments, and unsold inventory. He told Bloomberg that "there is so much supply and the price has not gone up by much," highlighting that commercial tenants are increasingly negotiating for discounts and free-rent periods.

Razack's concerns extend beyond Hyderabad. He cited rising construction costs—driven by elevated land prices, approval fees, and labor—as a structural headwind. Young homebuyers today face 30-33% higher costs just from taxes and regulatory charges, he noted. The supply of affordable homes has hit a seven-year low nationwide, further cooling demand in the mid-market and luxury segments where unsold inventory is rising. These warnings suggest that while Prestige remains bullish on demand, the company is navigating a market with pockets of stress that could constrain returns.

Multi-City Expansion Strategy: Where Prestige Is Betting

Prestige's FY27 strategy focuses on six major metropolitan regions. Bengaluru remains the anchor, accounting for 43% of sales in recent quarters, followed by Hyderabad (32%) and Mumbai (23%). In Bengaluru, the company plans launches including Prestige Suncrest and Prestige Southern Star Phase 1, both high-rise residential projects. Mumbai expansion continues with flagship projects like Prestige Nautilus, which achieved ₹2,385.7 crore in sales within one month of launch in Q4 FY25. Delhi-NCR represents a growth frontier, with the company expanding aggressively following the near-sellout of Prestige City Indirapuram Phase 1, which sold ₹8,000 crore worth of its ₹11,000 crore inventory.

Hyderabad, despite oversupply warnings, remains a key market. The company launched Prestige Golden Grove in April 2026—a 28.7-acre township in Tellapur with 10 towers and 4,000 units (2-4 BHK) priced between ₹1.05 crore and ₹3 crore. Within two weeks of launch, it achieved ₹2,500 crore in sales and 1,700+ bookings, demonstrating strong demand for premium projects even amid broader market concerns. The developer is also planning a 5,000+ apartment complex in Hyderabad's Kollur area with a GDV of ₹7,500 crore.

Construction Cost Inflation: A Margin Headwind

Razack explicitly cited rising construction costs as a challenge to profitability. The West Asia conflict that began in March 2025 drove up prices for key raw materials, squeezing margins even as sales bookings remain strong. The developer's average realization for apartments and villas rose to ₹15,524 per square foot in Q4 FY25 (up 25% year-on-year), suggesting pricing power in premium segments. However, sustaining these realizations while managing cost inflation will be critical to hitting the FY27 profit targets that the market is pricing in.

Impact on Homebuyers and Investors

For homebuyers, Prestige's aggressive expansion means more choices in premium and mid-premium segments across major cities. The company's track record of on-time delivery and strong brand equity make it a relatively safer bet for long-term homeownership. However, Razack's warnings about affordability and oversupply in specific markets like Hyderabad suggest that buyers should be selective about location and timing. In saturated markets, price appreciation may be muted even if the developer executes well. Investors should favor projects in emerging micro-markets (such as Delhi-NCR extensions or Mumbai's western suburbs) where supply-demand dynamics remain favorable.

The FY27 guidance of ₹35,000-36,000 crore also implies that Prestige expects a moderation from FY26's exceptional growth. A 15-20% growth rate—while still robust—is below the 76% surge achieved in FY26, suggesting management's caution about market saturation in certain geographies. This makes project selection and location research critical for buyers entering now.

Expert Analysis: Balancing Growth With Market Realities

Prestige's strategy reflects a developer navigating contradictory signals. On one hand, record sales bookings, strong collections, and a ₹60,000 crore pipeline indicate that India's housing boom remains intact, especially in premium segments where the company operates. The company's CRISIL DA1+ rating—India's only real estate developer with this highest rating—underscores financial strength and execution credibility. On the other hand, Razack's public warnings about oversupply in Hyderabad and affordability concerns signal that the low-hanging fruit in the Indian real estate market may have been picked.

The developer's pivot toward six-city expansion (from its historical Bengaluru-centric model) is a defensive move—spreading risk across markets to avoid over-exposure to any single geography's downturn. Delhi-NCR's rapid absorption of Prestige City Indirapuram and Mumbai's luxury appetite (evidenced by Prestige Nautilus) suggest that this diversification is working. However, the Hyderabad example serves as a cautionary tale: even a developer as strong as Prestige cannot escape city-level oversupply cycles. Buyers and investors should therefore view Prestige's growth targets as achievable but not without headwinds.

What to Expect Next

In the coming quarters, watch for: (1) Regulatory approvals for the ₹60,000 crore pipeline—delays here could derail the FY27 guidance; (2) Prestige's pricing strategy in Q1 and Q2 FY27 launches, which will signal whether the developer is prioritizing volume or margin; (3) Quarterly sales bookings data, which will reveal whether market absorption is sustaining or cooling; (4) Margin trends in Q1-Q2 FY27 results, which will show how effectively Prestige is managing cost inflation. Any significant miss on the ₹36,000 crore target or margin compression could trigger a re-rating of the stock and signal broader market weakness.

Related Projects and Areas Affected

  • Prestige Golden Grove, Tellapur, Hyderabad: 28.7-acre township launched April 2026; ₹2,500+ crore in sales within 2 weeks; 4,000 units priced ₹1.05-3 crore.
  • Prestige Nautilus, Mumbai: Flagship luxury project that clocked ₹2,385.7 crore in sales within one month of Q4 FY25 launch.
  • Prestige City Indirapuram Phase 2 (MayFlower), Delhi-NCR: Launched after Phase 1 near-sellout of ₹8,000 crore against ₹11,000 crore inventory; signals strong Delhi-NCR demand.
  • Prestige Suncrest & Southern Star Phase 1, Bengaluru: High-rise residential launches in Q4 FY25; part of ongoing portfolio diversification.
  • Prestige Spring Heights, Hyderabad (Budvel): 10.59-acre project with 1,656 apartments (3-4 BHK); launched Q4 FY25 with ₹1,110.1 crore in sales.

Key Takeaways for Buyers

Prestige's expansion is real, but market conditions are mixed. The company's ₹36,000 crore FY27 target reflects genuine demand for quality residential products in premium segments. However, CMD Razack's public warnings about Hyderabad oversupply, rising construction costs, and affordability pressures should not be ignored. Buyers should prioritize projects in growth corridors (Delhi-NCR, Mumbai western suburbs, emerging Bengaluru micro-markets) over saturated markets like Hyderabad's IT corridor. For long-term homeownership, Prestige remains a credible choice given its execution track record and financial stability. For investors, be selective on location and entry timing—premium pricing may not sustain in oversupplied markets, even for a developer as strong as Prestige.

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How this page was written

This article was drafted by The RealtyPromoo Research Team with research support from artificial intelligence. AI assisted in gathering and summarizing information from primary news sources and official statements, and the final content was reviewed by our editor before publishing. News pages are timestamped at the time of writing and are not updated after publication.

Sources consulted: Primary press releases & company statements · Tier-1 business news (Economic Times, Livemint, Moneycontrol, Business Standard) · BSE / NSE corporate disclosures · Government notifications · State RERA filings (where relevant).

Published: 15 June 2026 · Spot an error? Let us know

Projects mentioned in this article

Prestige Golden Grove New Launch

Prestige Golden Grove

by Prestige Group

Tellapur–velimela–kollur, West Hyderabad, Hyderabad

₹93 L – ₹2.40 Cr+

2 BHK, 3 BHK, 4 BHK

RERA Possession March 2031
Prestige Evergreen New Launch

Prestige Evergreen

by Prestige Group

Varthur, Whitefield, Bangalore

₹1.1 Cr – ₹4.25 Cr

1 BHK, 2 BHK, 3 BHK, 3.5 BHK, 4 BHK

RERA Possession June 2030
Prestige Park Grove Under Construction

Prestige Park Grove

by Prestige Group

Seegehalli, Whitefield, Bangalore

₹65 L – ₹3.5 Cr

1 BHK, 2 BHK, 3 BHK, 4 BHK Apartments, 4 BHK Duplex Villas

RERA Possession December 2027
Prestige Bougainvillea Garden Sector 150 Noida Pre-Launch

Prestige Bougainvillea Garden Sector 150 Noida

by Prestige Group

Sector 150, Noida

₹1.8 Cr onwards (indicative starting price); upper range unconfirmed — broker materials suggest up to ₹6.5 Cr+ for 4 BHK

2 BHK, 3 BHK, 4 BHK (confirmed; some channel partners cite 2 & 3 BHK only in active inventory — 4 BHK availability should be flagged as unconfirmed at launch stage)

Prestige City Hyderabad Rajendra Nagar Under Construction

Prestige City Hyderabad Rajendra Nagar

by Prestige Group

Bellagio Villas Phase 1 launched · Apartments under construction · Forum Mall (7-acre commercial) upcoming

Rajendra Nagar, Hyderabad

₹1.42 Cr - ₹3.16 Cr (Apartments); Villas from ₹10.62 Cr

2 BHK, 3 BHK, 3.5 BHK, 4 BHK Apartments + 5 BHK Villas

RERA Possession October 2028
Prestige City Mulund Mumbai Project Under Construction

Prestige City Mulund Mumbai Project

by Prestige Group

Bellanza under construction (possession Dec 2026) · Forest Hills new launch (possession Dec 2029-30) · Siesta launched

Mulund West, Mumbai

₹2.0 Cr - ₹7.05 Cr

2 BHK, 2.5 BHK, 3 BHK, 4 BHK

RERA Possession December 2026
Prestige Ocean Towers South Mumbai Under Construction

Prestige Ocean Towers South Mumbai

by Prestige Group

Ocean Towers North (P51900053993) launched Dec 2023 · Ocean Towers South (P51900066470) under construction, completion Dec 2030

Marine Lines, South Mumbai, Mumbai

₹22.63 Cr - ₹35 Cr

4 BHK, 5 BHK, 6 BHK Villaments

RERA Possession December 2030
Embassy Developments Bengaluru Residential Projects New Launch

Embassy Developments Bengaluru Residential Projects

by Embassy Group

Embassy Springs plots ready · Embassy Verde Phase I sold-out · Greenshore & Verde Phase II RERA approved · 4 more launches in FY26

Devanahalli, Bangalore

₹1.27 Cr - ₹3.05 Cr

2 BHK, 3 BHK, 3.5 BHK, 4 BHK

RERA Possession December 2031
Prestige Park Drive Devanahalli Bengaluru Ready to Move

Prestige Park Drive Devanahalli Bengaluru

by Prestige Group

Phase 1 (215 plots) complete · Phase 2 complete · Phase 3 expected

Devanahalli, Bangalore

₹45.60 Lakh - ₹1.65 Cr

Villa Plots: 30×40, 30×50, 40×60, 50×80 (1200–2400 sq.ft.)

RERA Possession March 2022
Prestige Raintree Park Varthur Bengaluru Under Construction

Prestige Raintree Park Varthur Bengaluru

by Prestige Group

Phase 1 (21 acres, 18 towers, 1,520 units) under construction · Phase 2 — Prestige Evergreen (24 acres, 14 towers, 2,000 units) new launch

Varthur, Whitefield, Bangalore

₹2.9 Cr - ₹6.3 Cr

3 BHK, 3.5 BHK, 4 BHK, 4.5 BHK, 5 BHK

RERA Possession December 2028
Prestige Fernvale Sarjapur Road Bengaluru New Launch

Prestige Fernvale Sarjapur Road Bengaluru

by Prestige Group

Phase 1–5 (earlier enclaves) operational or under construction · Fernvale = Phase 6, new launch Mar 2026

Kodathi, Sarjapur Road, Bangalore

₹1.29 Cr - ₹2.50 Cr

2 BHK, 3 BHK

RERA Possession March 2030
Brigade Belvedere New Launch

Brigade Belvedere

by Brigade Group

Phase 1 (2 towers, 773 units) new launch · Phases 2–5 (3 remaining towers, 977 units) to follow

Budigere Cross, Whitefield, Bangalore

₹95 L – ₹2.54 Cr

1 BHK, 2 BHK, 3 BHK, 3.5 BHK

RERA Possession December 2031
Sattva City New Launch

Sattva City

by Sattva Group

13 towers released in phases · Foundation work underway for first 3 towers · Full township completion February 2032

Doddajala, Airport Road (nh-44), Bangalore

₹1.82 Cr – ₹9.6 Cr

2 BHK, 2.5 BHK, 3 BHK, 3.5 BHK, 4 BHK, Penthouses

RERA Possession February 2032

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