Real estate firm Sunteck Realty Ltd said on Monday it has acquired around 110 acres on Pen-Khopoli Road in the Mumbai Metropolitan Region (MMR) to enter the second home segment.

The acquisition has been done with an asset light joint development agreement strategy.

The land, which has prominent river frontage, will be used for the development of luxury plots and cottages. The new acquisition will add approximately 4-5 million square feet of development potential to the company's existing portfolio.

Mumbai-based Sunteck Realty Ltd has made several acquisitions over the past 18 months to expand its presence in the MMR market. It acquired a 50-acre plot of land in Sahahd (Kalyan) to build a residential municipality of 10 million square feet with a revenue generation of around 9,000 crore.  It also acquired 50 acres in Vasai (West) with the potential to develop 4.5 million square feet. It is also developing 2.6 million square feet in Vasind and luxury beachfront residences in Borivali (West) with potential revenue of approximately Rs 1,800 crore, all for a total of 18 million square feet.

“We continue to make smart acquisitions and value-enhancing diversifications within the housing market, lending credence to the possibility that the industry is consolidating behind financially strong brand developers. With the current project offering a larger and luxurious second home for those who are looking for a new home,” said Kamal Khatan, chairman of Sunteck Realty. Longing to get away from the hustle and bustle of the city, Sunteck is now across the entire value suite for our customers."

Second homes priced from 50 lakh to 50 crore are seeing high demand from affluent individuals, including tech entrepreneurs, corporate professionals and Non-Resident Indians (NRIs), who are seeking to move away from cities amid the pandemic.

Developers such as Tata Realty and Infrastructure Ltd, DLF Ltd, Isprava and others see demand for larger single homes, with office space, at higher budgets, both for single use and for investment, in Goa, Kasauli, Coonoor, Alibaug and other ‘away from the city’ locations.

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