Bengaluru: Realty firm Sobha will invest about Rs 3,500 crore over the next 7-8 years to develop a mid-income housing project in the city.For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
With this, Sobha said it is entering a new segment - Sobha Dream Series - to cater to mid-income housing.
The real estate player, which is more into luxury homes, has priced flats in a range of Rs 40-75 lakh.
On project cost, Sobha vice-chairman and managing director J C Sharma said, "Total realisation is expected to be more than Rs 4,000 crore. We work on a profit margin of about 10 per cent."
The construction cost will be met through bank loans and advances from customers.
"This project will be developed on 81 acres at Balagere in the city. Developable area will be about 10 million sq ft comprising 7,000 homes," Sobha chairman Ravi Menon told reporters here.
Elaborating, Mr Menon said the company has launched some 2,100 units in the first phase comprising 2 million square feet of developing area.
"We have already sold 500 units in this project," Mr Menon said.
The construction, to be based on pre-cast technology, will start next month, he added.
Sobha has constructed 70 million square feet in 22 cities over the last 20 years.
Shares in Sobha, on Wednesday, ended at Rs 408.50 apiece on the BSE, down 2.06 per cent from the previous close.