Ramky Estates set to enter tier-2 real estate markets in Telangana

Ramky Estates, a part of the $2-billion multinational business house Ramky Group and one of the leading real estate firms in South India, has built over one crore sqft of residential and commercial spaces, with a total estimated value of Rs3,500 crore. It offers an array of projects as diverse as the buyer’s market, with units priced between Rs45 lakh and Rs2 crore.

The company claims to be the only Hyderabad-based realty developer with a significant presence in South India, having projects in Bengaluru, Chennai, Visakhapatnam and Warangal. It is aiming for a total booking value in excess of Rs2,000 crore in FY24, Ramky Estates Managing Director M Nanda Kishore tells Bizz Buzz in an exclusive interview

Till now, how many projects were completed by Ramky Estates? How has the company become a trusted brand in South India?

Ramky Estates is a leading real estate company in the Indian realty sector for the past 28 years with a track record of delivering over 27 top-quality projects spanning across 1 crore sq ft with a total estimated value of Rs 3,500 crore. With a team of over 200 exceptional professionals, the company’s expertise lies in developing exceptional residential and commercial spaces.

Part of the esteemed Ramky Group, a multinational business conglomerate worth $2 billion, Ramky Estates has established itself as a trusted name in the property market. It has built a legacy of success as the only real estate developer having a strong presence across South India including Hyderabad, Bengaluru, Chennai, Visakhapatnam and Warangal.

The company’s commitment to customer satisfaction is evident through the 7,500+ happy families served. It has earned several accolades in the real estate industry including the ‘Emerging Developer of the Year’ award at the Construction Week India Awards 2019 and ‘Integrated Township Project of the Year’ award at Realty+ Excellence Awards 2018 South.

How many are the ongoing ventures? When will the construction work get completed?

With an emphasis on ‘community living’ and ‘technology integration’, Ramky Estates is committed to build residential projects that reflect a sense of togetherness and futurism. It has Rs 3,600-crore worth projects in the pipeline covering residential space of 40 lakh sq ft across Hyderabad, Bengaluru, Chennai, Visakhapatnam and Warangal.

Ramky Estates has a significant presence in Hyderabad, having 16 completed projects and 12 ongoing ventures in all parts of the city. The company has strengthened its leadership in the city with the recent launch of three new projects – Ramky One Astra at Kokapet in West Hyderabad, and Ramky One Genext & Ramky One Orion at Uppal in East Hyderabad.

Other ongoing projects of the company include Ramky One Odyssey at Kokapet, Ramky One Orbit at Nallagandla, Ramky One Symphony at Patancheru, Ramky TruSpace Aspire at Balanagar and Ramky One Harmony at Kukatpally in Hyderabad, and Ramky One Krystal Apartment and Villa projects at Sheelanagar in Visakhapatnam.

The residential projects under execution in other cities include – Ramky One Karnival at Electronic City, Bengaluru and RWD Grandcorridor at Poonamallee High Road & RWD Spotlight at Thirumazhisai in Chennai. All these projects are spread across a significant geographical profile.

These projects are tailored to echo our focus on ‘building with heart and building it smart’, while incorporating a fresh focus on the evolved facets of modern lifestyle through our ‘Community Living’ initiative. As we cater to a large variety of customer preferences, our vast portfolio of residential projects are priced between Rs 45 lakh to Rs 2 crore. We will be investing around Rs 10,000 crore to create residential space of around 1.5 crore sq ft in these upcoming projects across four cities. Most of the investments will be from the internal accruals only. We are not planning to raise funds from external sources. The construction work of these housing units will be completed within coming three-and-a-half years.

What about the land bank available with the company? Have you finalised any upcoming projects?

Currently, we have a land bank of 500 acres in Hyderabad alone for the upcoming projects. Adding to the company’s already vast portfolio across the city, we are coming up with new residential projects at Isnapur, Pocharam, Cherlpally and Tukkuguda. We also have plans to enter into the real estate markets of tier-2 cities in Telangana.

We have another 500-acre land bank across other cities including Bengaluru and Chennai. We are coming up with new residential projects in these cities. However, we don’t have immediate plans to foray into the cities of North India. Rather, we want to expand in the existing cities where we have a strong presence.

Could you let us know about the commercial real estate projects of the company?

We want to be an asset light company, and commercial real estate demands huge investments. Also, the demand for the commercial space often sees more fluctuations. There will be huge highs and deep lows in the commercial real estate segment. The risk appetite is much higher. So, we have consciously kept commercial projects at only 10 per cent of our overall portfolio.

At present, we are doing a commercial project of 2 million sq ft of IT/ITeS office space in Hyderabad. The construction activity of Genpact’s office at Uppal is in full swing. The ground works were completed and we would soon commence the work on slabs. This project is set to be completed in the next three years.

The construction of retail space is again a different ballgame when compared to the residential and office spaces. The market dynamics are completely contrasting. We feel that's not our core competency and we would like to focus more on this part rather than on diversifying too much. We want to keep our focus more on the residential and office space.

Going forward, we may look at some other asset classes. But as of now retail has never been our focus. But, we are looking at building warehousing space. We have developed several industrial parks in the country. There is an opportunity for us to leverage our strength in the warehousing arena.

Also, we see a huge opportunity in the logistics side of the real estate because the e-commerce market is doing pretty good. So, there's a lot more distributed demand for warehouses in tier-2 cities as well. We would likely to come into the warehousing segment with a hub and spoke model. Over the next five years, our plan is to develop warehousing space of about 4 lakh sq ft.

What are the new technologies being adopted by the company to boost the sales transactions?

The integration of technology in real estate processes has always solved problems faced by realtors and homebuyers. Ramky Estates goes beyond brick-and-mortar by engaging in collaborative experiences within its communities. We have successfully leveraged technology, taking tech integration to the next level with our foray into metaverse.

‘RamkyVerse’, a virtual reality marketplace, will be launched on July 15, 2023. The prospective buyers can teleport into the landscapes of our properties virtually with their own chosen avatars. Having three virtual auditoriums, the platform gives the closest experience to living in our projects to the customers, while being informed of the properties under construction.

The salespersons and speakers will be integrated into the platform, enabling real-time interaction. The virtual landscape is accessible for 30 days, and includes a virtual experience of all our projects. Through the seamless blend of technology and innovation, our team is set to revolutionise property showcasing, offering a hyper-realistic experience beyond imagination.

The idea is to provide the customer the convenience of sitting at home or sitting wherever he or she is to access our virtual offices, and then interact with our sales team and understand about our projects, so that they're able to make much better informed decisions. Going forward, the sales will also happen on this platform.

What are the other initiatives of the company to assure quality homes to the customers?

Ramky Estates enjoys customer loyalty that few other companies in this industry do. This has helped the company to scale up rapidly with a CAGR of 42 per cent in the past five years. An estimated 25 per cent of our sales come from existing customers and referrals, which the company attributes to their deep understanding of customers’ home life and lifestyle.

The company hosts a variety of events within our communities. Our annual event 'Umang' provides every customer with the opportunity to proactively engage with their community's well-being and address any concerns. We also address concerns put forward by our customers by rendering services such as pest control, deep cleaning, and other pertinent solutions.

We organise a variety of initiatives like tree plantations, activity camps, and sports events for the community regularly. Recently, we have introduced futsal (five-a-side mini-football) court within a community. These amenities encapsulate the essence of living in a community and becoming a part of one.

Another recent event focused on cybersecurity and online safety was received well by the residents involved. With our platform to engage directly with our customers, we plan to gather further insights into the lifestyle roadblocks of modern homebuyers. These insights would play a vital role in further designs of homes and residential communities.