Company Financial Rusult In Crore

About The Company

Arkade Developers is a real estate development company whose operations are concentrated on the development of premium residential premises in Mumbai, Maharashtra. As of July 31, 2023, they have developed over 1.80 million square feet of residential property (including via partnership entities in which they hold the majority stake). They are engaged in both the development of new projects and the redevelopment of existing premises. Between 2017 and Q1 FY 2023, they launched 1,040 residential units and sold 792 residential units in different markets in the Mumbai Metropolitan Region (MMR), Maharashtra.

They are currently developing projects that have a very broad per-unit price point, ranging from ₹9.44 million to ₹62.53 million. While their initial projects were stand-alone residential buildings, their portfolio of ongoing projects includes gated communities such as Arkade Nest, Arkade Crown and Arkade Aspire, Arkade Prime, and Arkade Aura. They are currently developing approximately 2 million square feet across five ongoing projects and 2 upcoming projects for which development agreements have been executed already.

Between calendar year 2017 and Q1 FY 2023, the MMR territory has contributed the highest share of annual sales of residential units across the top seven cities in India, ranging from 27% to 32%. Therefore, the company is strategically placed to access a large part of the real estate development market in India.

Arkade Developers - Strength and Weakness

Strength

• The company is strategically located in one of the most high-value real estate markets in India. Within this market, they are focused on projects that are premium properties, i.e. higher on the value chain. Therefore, they are very well placed in the market and have a strong brand for premium quality.
• The companys promoter is a second-generation real estate entrepreneur with 20 years of experience. His family has been in this business since 1986.
• They have built major in-house resources, including their legal team, business development, purchase and contracts, and sales and marketing teams.

Weakness

• The risk of not being able to complete projects on time is significant in the real state development market as it increases the scope of the volatility in the prices of both land and raw materials. It also tarnishes the image of the developer and may activate the effects of penalty clauses.
• The company does not enter into any long-term agreements for the supply of labour and key materials for the construction of projects. Therefore, there is the risk of a significant increase in prices or the shortage of labour or key materials for construction.

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