Bengaluru, June 18, 2025 — Prestige Group, one of India’s leading real estate developers, has signaled price increases for mid-income housing in the upcoming fiscal year. Chairman and Managing Director Irfan Razack cautioned that homebuyers in this segment should brace themselves for steeper costs, driven by rising land and construction expenses.
According to Razack, prices in the mid-market segment—typically homes priced between ₹75 lakh and ₹2–2.5 crore—may increase by 5–7% in FY26, with luxury properties facing even sharper hikes. However, he emphasized that Prestige is working to ensure affordability and avoid runaway inflation in housing costs.
“We do not want the price to run away very fast… rising land and construction costs are the primary drivers of the price increase,” Razack explained.
Strong Sales Momentum, Signature Projects
Prestige Group’s first quarter performance has been exceptionally strong, with the launch of Prestige City Indirapuram in NCR seeing nearly 2,800–2,900 units sold out of 3,400, generating over ₹7,000 crore in sales. “This quarter has been one of the strongest the company has ever had,” Razack stated.
In addition to NCR, Prestige is expanding its portfolio through new residential projects in key metros, including Gardenia Estate in Bengaluru and Pallavaram Gardens in Chennai, aiming to cater to diverse mid-income segments.
Hospitality IPO and Strategic Asset Cleanup
Beyond residential, Prestige is advancing its strategy in the hospitality sector. The company has filed for an IPO for its hospitality arm, with the goal of raising around ₹3,500 crore to significantly reduce debt and fund future investments. Notable upcoming projects include the high-profile Delhi Aerocity Hotel, which will house marquee brands like St. Regis and Marriott Marquis, along with a large convention facility.
On the residential front, Mumbai developments are progressing well: Jasdan Classic is ready for handover, while Siesta Tower (Mulund) and Turf Tower (Mahalaxmi) are completed. Construction is underway at Pali Hill, with approximately 70% of units already sold.
Outlook: Solid Demand Amid Micromarket Shifts
Reflecting on market conditions, Razack affirmed that “people who are ready, willing, and able to buy and invest” continue to drive confidence across price segments. While overall market trends show stability and balancing of mid‑segment prices, affordability remains a priority.
Prestige Group—founded in 1986 in Bengaluru—is one of India’s preeminent real estate developers, with a presence in metro cities including Chennai, Hyderabad, Mumbai, and Kochi.
What This Means for Homebuyers & Investor
| Category | Implications |
|---|---|
| Mid‑Income Buyers | Expect a 5–7% uptick in home prices in FY26. Projects in progress may offer better value than ones launching later in the year. |
| Luxury Segment | Higher price growth expected; slower absorption suggests less volume demand. |
| Investors | The hospitality arm’s IPO could free up funds but also reshape Prestige’s strategic direction. |
| Market Outlook | Demand remains robust; affordability in mid‑income segment is pivotal for sustained volumes. |
Bottom Line
Prestige Group’s forecast of rising prices reflects structural cost pressures in the real estate construction supply chain. With its ability to generate strong upfront sales, diversify across segments, and streamline debt via the upcoming hospitality IPO, Prestige appears well-positioned. But for many mid-income buyers, timing and choice of location will be key as prices adjust upward over the year.