Eco-habitat developer Organo is planning on spending Rs 900 crore to buy 1,800 acres of land to build townships across Hyderabad and Bengaluru.
Following the Covid-19 pandemic, the Hyderabad-based company is focusing on demand growth in self-sustaining cities and people choosing to live away from cities.
Proposed Townships Development
The founder of Organo, Nagesh Battula, said the company plans to build townships, but the investment figure has not been confirmed. With an order book of Rs 3,000 crore and a turnover of Rs 900 crore, we are currently looking at projects across product categories, targeting 3 percent of the total TAM for alternate real estate in India.
There is minimal speculation about land prices in Rurban (a combination of rural and urban) communities. Most of the costs go into building infrastructure and installing technology to support the population. Just 11 percent of the total expense is the land price. In contrast to typical real estate investments, constructing Rurban communities where the project's value is primarily derived from the speculative nature of the price of land and developments that take place around the project.
A Meraqui 'Emerging Residential Niche Products' report suggests the alternative real estate target addressable market (TAM) is projected to hit $4.3 billion by 2022. The company's projects with a total valuation of Rs 450 crore are being built in Hyderabad on a 70-acre land plot and are expected to be completed by 2023. The company has set up land plots of 63 acres (254 villas) and 50 acres (150 villas) in the north of Bengaluru with a total project value of Rs 372 crore and Rs 270 crore, respectively.
Battula stated that all people are drinking contaminated water, breathing polluted air and eating polluted food with our cities being choked due to high population density. Counter-urbanization is one of the effective ways which helps in reducing stress in our cities and improving health and well-being.