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Company Profile

One of the most well-known real estate companies in India, Prestige Estates Projects Ltd; has its headquarters in Bengaluru, Karnataka. Razack Sattar started it in 1986, and his family is in charge of it. Prestige Estates Projects Ltd; is the company’s publicly traded name on Indian stock exchanges. Prestige Estates Projects Limited is a property developer that has influenced South India’s residential, commercial, retail, leisure, and hospitality industries. The only real estate developer in Bangalore to receive the esteemed FIABCI (International Real Estate Federation) Award for its residential facilities and is an ISO 9001:2000 certified company. They have finished more than 184 projects totalling more than 60.74 million square feet of created space approximately. Prestige also has other ongoing projects, upcoming projects as well which include apartment enclaves, shopping malls and corporate structures, spread across all asset classes.

Real Estate Industry in India

•   The real estate industry in India, which is the country’s second-largest employer after agriculture, is expected to develop significantly. It is contributing 13% of the nation’s GDP at present, rising from US$200 billion in 2021 to US$1 trillion by 2030. According to long-term projections, the market may reach US$5–7 trillion by 2047 and could reach US$10 trillion. Demand in the residential, commercial, retail, and hospitality sectors is still being driven by rapid urbanization, growing household incomes, and the rise of nuclear families. India is predicted to have 542.7 million urban residents by 2025, 675.5 million by 2035, and 900 million by 2047.

•  Primary house sales in tier I cities totalled Rs.6,70,000 crore (US$76.53 billion) in FY25, a 96% increase from FY22. Housing demand increased by 77% between FY19 and FY25. In H1 2025, 7,000 luxury homes valued at US$ 466,091-699,137 approx. were sold, representing an 85% YoY increase in luxury housing. India’s HNI population, which is concentrated in cities like Bengaluru, Delhi, Mumbai, Hyderabad, and Surat, surpassed 850,000 in 2024 and is expected to almost quadruple to 1.65 million by 2027. 

•  The office industry is still growing quickly. In FY25, gross leasing in the top seven cities exceeded 62.98 million square feet, a 26.4% YoY increase. Global Capability Centers (GCCs) leasing increased 24% year over year to 31.8 million square feet, or 42% of overall absorption. The technology, BFSI, engineering, and manufacturing sectors drove the 17.8 million square feet of gross Grade A leasing in Q2 CY25.

•   Millennials, Gen Z, and Gen Alpha are driving demand for ease, digital integration, and immersive experiences in retail real estate, which is changing quickly. By 2028, hospitality is expected to grow to around US$60 billion because of government initiatives, increased domestic travel, and sustainable, immersive products. Data centre demand is predicted to increase by 15–18 million square meters, and SEZs and Tier II cities like Kochi, Vadodara, Visakhapatnam, Gandhi-nagar, and Bhubaneswar continue to draw investments by 2025.

• In H1 2025, private equity inflows increased 38% year over year to Rs. 20,566 crore (US$2.4 billion), with Q2 alone accounting for Rs.13,710 crore (US$1.6 billion). PE investments were US$742 million in Q1 2025, a 35% increase year over year. The yearly contribution from foreign investors is approximately US$3.1 billion, with a 37% YoY growth in H1 2024.

• The Indian government is striving for complete digitization of land records by December 2025, thereby minimizing risks associated with ownership disputes.

New real estate regulations require centralized digital property registration, compliance with RERA, and real-time updates on projects, which enhances investor confidence. From April 2000 to June 2025, Foreign Direct Investment (FDI) in construction activities totalled Rs.323,987 crore (approximately US$ 36.85 billion), while construction development attracted Rs.2,39,261 crore (around US$ 27.21 billion). India’s real estate industry is on the brink of a significant transformation, propelled by swift urbanization, digital advancements, and robust investor engagement. With increasing demand in residential, commercial, retail, and hospitality sectors, this industry is poised to continue being a fundamental component of India’s economic growth.

Company Perspective and Review

•  Primarily due to project, investment, and working capital expansion, Prestige Estate Projects reported a robust and improved balance sheet in FY21–25, with total assets rising from ` 18,199 crore to ` 26,419 crore. Due to a significant increase in provisions that demonstrated good profitability and internal capital production, shareholders’ equity more than quadrupled while dilution remained low. While short-term borrowings and current liabilities have expanded in tandem with growth in project activity and customer lending, the debt profile has structurally improved, with long-term borrowings down significantly and overall debt levels remaining comfortably low. 

• The profit and loss performance of Prestige Estates Project from 2021 to 2025 illustrates how real estate revenues are intrinsically cyclical and project-based. Revenue and profit kept fluctuating but Prestige Estates has paid dividend consistently over the years. Overall, the company has remained profitable throughout the five-year period, ongoing real estate projects being key areas to watch, positioning the company for growth.