After carving out a niche for itself in the southern real estate market, the Provident Housing, the affordable housing arm of Bengaluru-based Puravankara Projects, plans to foray into bigger property markets including Mumbai, where it has recently entered into a joint venture agreement for a two acre land parcel in the Bandup suburb of the city and also negotiating for building two projects in Pune. In addition to this, it is currently in advanced talks with other developers and land owners to enter into joint development agreements for undertaking projects stretching across over 10 million square feet. In Hyderabad, Provident Housing and its partner have already sought civic approvals for a 2.2 million square feet development. Elsewhere in the country, the company is currently developing projects spread over 9.4 million sq ft comprising total 9,048 units, while it has already delivered 4,430 units spread over 4.55 million sq ft so far.
According to official sources, the builder has four major projects in Bengaluru and has also ventured in other markets in southern India like Chennai, Coimbatore and Mangalore in the recent past and was among the first property developers to focus on affordable housing. In order to reduce its construction cost, the company had incorporated precast technology wherein panels or units are manufactured at the site and assembled. The company, which builds luxury and affordable homes, is now upbeat on an imminent recovery in the Indian economy and the anticipated decline in interest rates and softening inflation that are expected to boost demand for housing. A report by SBICAP Securities says that Puravankara is focused on improving its balance sheet strength amidst the improving environment. This, along with advantages like a well-located land bank, strong execution skills and sound corporate execution skills matching corporate governance are likely to help the company improve its valuations, they added.