Construction | December 2012
L&T will set up Rs 5,000 crore housing project
Larsen & Toubro is setting up one of the largest residential projects in Mumbai measuring up to two million square feet over 20 acre of vacant land on its Powai campus in Mumbai. The residential real estate prices in Powai and adjoining areas are around Rs 25,000 per sq ft. This means the project would yield an estimated Rs 5,000 crore in sales. Assuming the construction cost is Rs 2,500-3,000 per square foot, the company would have to spend only Rs 500-600 crore. The project comes at a time when L&T is planning to shift its switchgear unit at its adjoining Navi Mumbai campus. L&T has a big opportunity as not much stock is coming up in the Powai area. New apartments are being sold at Rs 20,000-25,000 per sq ft, said Raja Seetharaman, Managing Director of Aperon Realty, a real estate consultant. Seetharaman said L&T residential projects would be in demand as it has an advantage in terms of quality, brand and project completion track record.