Bengaluru-based real estate developer Prestige Group has exited its proposed luxury residential project in Lutyens’ Delhi, selling a prime bungalow located on Kasturba Gandhi Marg for approximately ₹450 crore. The decision follows prolonged delays in receiving regulatory approvals, which impacted the project’s execution timeline.
The company had acquired the bungalow in 2023 from TDI Infratech for around ₹300 crore. The property, spread over nearly 5,100 square yards, was intended to be redeveloped into an ultra-luxury residential project comprising 8 to 9 premium apartments. Each unit was expected to be priced above ₹70 crore, positioning the project among the most exclusive residential offerings in the national capital.
However, development plans faced challenges due to strict regulations and lengthy approval processes applicable to the Lutyens’ Bungalow Zone, one of the most regulated and prestigious residential areas in India. Despite sustained efforts, the necessary clearances could not be secured within a viable timeframe, leading Prestige Group to reconsider its investment strategy for the location.
The bungalow has now been purchased by a businessman with business interests in Jharkhand and Kolkata. The transaction highlights continued demand for rare and high-value properties in central Delhi, even as developers remain cautious about new construction in tightly regulated zones.
With this exit, Prestige Group is expected to redirect its focus toward expanding its footprint across the National Capital Region (NCR). The developer has already entered the NCR market with a residential project in Ghaziabad, which has seen positive market response. In addition, the company is evaluating further opportunities in Noida and Gurgaon, where regulatory processes are relatively more streamlined and market demand remains strong.
Industry observers note that while Lutyens’ Delhi continues to command premium valuations, regulatory complexity often influences developer participation. Prestige Group’s decision reflects a broader trend of real estate companies prioritising regions that offer faster execution and scalable growth.
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