Prestige Estates targets ₹36,000 crore FY27 pre-sales

Demand backdrop: company stays bullish despite uncertainty

Prestige Estates Projects Ltd has guided for higher pre-sales in FY27, even as it flagged global uncertainty and cost inflation as risks worth watching. In an interview with PTI, chairman and managing director Irfan Razack said demand for the group’s residential properties remains strong and he has “no concern at all” about sales traction. He described the current phase as a “different cycle” marked by healthy sales velocity and a visible preference for trusted developers. Razack said customer buying remains focused on long-term ownership, not short-term speculation. He added that demand can move in waves, with periods of high velocity and phases where momentum slows. For now, the company’s commentary indicates stable traction across markets. He also pointed to a good start to the year, noting April sales were “good.”

FY27 pre-sales guidance: 15% to 20% growth

Asked about the sales guidance for the current fiscal, Razack said Prestige is looking at 15% to 20% growth. He put a realistic pre-sales target at ₹35,000-36,000 crore for FY27 and said he is confident of achieving it. The company’s planning is anchored around a strong launch schedule across key markets. The guidance comes after a strong FY26, where the company reported around ₹30,000 crore in sales. Prestige has also reiterated optimism in a regulatory filing, stating that bookings remained consistent across new launches and existing inventory. The company said demand across its key markets has stayed encouraging, supported by its focus on quality, location, and timely execution. Razack also said a robust pipeline of upcoming launches across geographies should help sustain momentum.

Launch pipeline: ₹60,000 crore depends on approvals

Prestige expects launches to be the key lever for meeting its FY27 pre-sales target. Razack said the group has around ₹60,000 crore worth of launch pipeline, but the quantum of launches in FY27 depends on approvals. He highlighted Bengaluru, Mumbai Metropolitan Region (MMR), and Delhi-NCR as major focus areas, and also referenced other cities including Hyderabad and Chennai. In a separate interaction, he said the biggest industry challenge is getting approvals quickly, because development can start only after multiple clearances and registrations such as RERA. He also said the company is pushing hard to start new projects, indicating that demand is not the constraint. The pipeline narrative ties back to FY25, when Prestige missed its sales target largely due to approval delays and fewer launches. In other words, execution on approvals will influence how much of the pipeline converts into actual FY27 launches.

City-level activity: Bengaluru launches and Hyderabad approval watch

Razack outlined specific near-term launch plans during a media interaction. He said Prestige was planning to launch three projects in Bengaluru: Prestige Fern, Prestige Eaten Park in Prestige City, and a plotted development called Gardinia Estate. He also said Prestige had already launched Prestige Marry Gold Phase 2 Plus during the month referenced. On Hyderabad, he said the company was keenly tracking one approval that could add “huge volumes,” referring to a project called Prestige Golden Towers, while noting it was still a work in progress. These disclosures underline the company’s reliance on approvals to time launches and drive bookings. They also provide a clearer view of where near-term supply additions may come from. The broader pipeline spans multiple large markets, but actual sales conversion typically follows the launch calendar.

Pricing and costs: “measured” approach amid inflation

While demand commentary stayed optimistic, Razack acknowledged inflationary pressures and rising commodity costs. He said shortages and price increases are possible, while cautioning that the extent is hard to predict. He added that developers need to be “very, very careful” and “measured” on pricing. The caution is linked to long project timelines in real estate, where not all cost increases can be passed on to buyers immediately. In another interaction, he said volumes and pricing have been sustained, but developers should avoid taking prices “too high.” He also indicated prices have reached a level that customers are accepting, unless commodity prices rise sharply again. The message suggests the company is balancing growth targets with affordability and absorption.

Interest rates matter: 90% buyers use home loans

Razack also linked demand sensitivity to interest rates, particularly for financed buyers. In an interview with ET Now, he said a 25 basis points reduction in interest rates by the Reserve Bank of India could significantly improve home purchases and support broader economic activity. He added that over 90% of Prestige’s homebuyers depend on housing loans. That makes borrowing costs a meaningful variable for both demand volume and customer decision timelines. The company’s commentary does not assume rate changes, but it flags the direct channel through which policy rates can influence conversion. This is relevant because the company is aiming for higher pre-sales in FY27 and wants faster launch-to-booking cycles. Lower borrowing costs can also help sustain pricing without dampening volumes, although the company did not quantify the impact.

FY25 miss and FY26 rebound: approvals shaped outcomes

Prestige’s recent performance shows how supply timing can affect annual bookings. The company said it missed its FY25 sales target as bookings fell 19% to ₹17,023 crore, below the guided ₹24,000 crore. It attributed the shortfall mainly to inadequate new project launches because of approval delays. Against that, the company reported a strong FY26 with around ₹30,000 crore in sales, reflecting a rebound in booking momentum. In a regulatory filing, Prestige said bookings remained consistent across new launches and existing inventory, pointing to resilient underlying demand. The contrast between FY25 and FY26 reinforces why FY27 execution is being framed around launch readiness and clearances. It also explains why management continues to stress approvals as the key bottleneck, not buyer appetite.

Key numbers snapshot

Market impact: what the commentary signals for investors

For investors tracking listed real estate developers, Prestige’s FY27 guidance provides a clear number and a clear dependency. The company is positioning the demand environment as supportive, with bookings staying consistent and sales velocity described as robust. At the same time, the company is explicit that approvals determine how much inventory can be brought to market, and that this constraint has already impacted performance in FY25. Cost inflation is another variable, with management expecting possible shortages and price increases in materials, while advocating cautious pricing. The interest-rate channel is also relevant, given the company’s disclosure that more than 90% of buyers use housing loans. Taken together, the outlook remains positive, but execution hinges on the launch pipeline converting into approved, market-ready projects.

Conclusion: growth target anchored to launches and execution

Prestige Estates has guided for FY27 pre-sales of ₹35,000-36,000 crore, implying 15% to 20% growth, supported by a stated launch pipeline of about ₹60,000 crore. Management continues to describe demand as resilient across key markets and expects momentum to sustain, while staying watchful on inflation and commodity costs. The company has also reiterated that approvals are the main operational variable that can affect launch timing and annual bookings. Next milestones for the story will be the pace of project approvals and the roll-out of planned launches across Bengaluru and other cities, including any large-volume approvals in Hyderabad.