Introduction
Ashiana Housing, one of India’s well-established real estate developers, has had an eventful fiscal year, with its performance reflecting both market challenges and strong operational execution. As the company eyes a solid FY26, key insights from Varun Gupta, the director of Ashiana Housing, shed light on the company’s latest sales performance, upcoming projects, market dynamics, and strategic shifts. In this blog, we will delve into Ashiana’s journey over FY25, their outlook for FY26, and how they plan to capitalize on the burgeoning senior living segment.
Table of Contents
- Ashiana Housing FY25 Pre-Sales Performance: Strong Growth Amid Market Fluctuations
- Quarter-by-Quarter Breakdown: Q3 Ashiana Housing FY25 and Beyond
- Realizations and Price Growth: Navigating Market Expectations
- Senior Living: The Growth of a New Market Segment
- FY26 Outlook: Maintaining Momentum Amid Challenges
- Frequently Asked Questions
Ashiana Housing FY25 Pre-Sales Performance: Strong Growth Amid Market Fluctuations
Ashiana Housing has demonstrated significant growth in pre-sales for FY25, despite several external challenges such as sector-wide competition and regulatory issues. Their sales performance has been bolstered by a combination of geographical diversification and a focus on product premiumization.
The Numbers Behind FY25 Performance
As of Q3 FY25, Ashiana Housing reported strong double-digit growth in pre-sales, with the total area booked increasing from 3.35 lakh sq. ft. to 6.75 lakh sq. ft. This growth was also reflected in the value of the total area sold, which has seen a rise in average realization per square foot. This rise in realizations was driven by the company’s strategic decision to launch premium products, including their flagship Ashiana Swarang a premium senior living offering.
The company set an ambitious target of ₹2,000 crore in pre-sales for FY25. While the company is still confident about reaching that number, the performance in Gurugram (Gurgaon) has been slower than anticipated. The market in Gurugram has seen a softening due to an oversupply of high-ticket luxury homes priced above ₹5 crore, which has dampened buyer enthusiasm. Nonetheless, Ashiana’s diversified portfolio, which operates in mid- to lower-tier price points, has allowed them to maintain solid sales across other key regions such as Jaipur, Chennai, Pune, and Bhiwadi.
The Strategy Behind Product Mix and Premiumization
A significant contributor to Ashiana’s growth this fiscal year is its product mix. In response to market trends, the company has shifted toward more premium offerings. Ashiana Swarang, their senior living project, was designed to cater to the rapidly aging Indian population, and its success has been a testament to the growing demand for such housing solutions. This strategic move into senior living has not only expanded Ashiana’s market reach but also provided a more resilient income stream in the face of broader market fluctuations.
Geographical Diversification Pays Off
While Gurugram has experienced a slowdown, Ashiana’s performance across other regions has been impressive. Sales in Jaipur, Chennai, Pune, and Bhiwadi have seen robust demand, and the company expects this trend to continue going into FY26. In particular, Ashiana has focused on expanding in Tier-2 cities, where competition is lower, and demand remains strong due to more affordable housing options. This geographical diversification has helped mitigate risks from overexposed markets like Gurugram, and it gives Ashiana a competitive edge in balancing risk and reward.
Quarter-by-Quarter Breakdown: Q3 Ashiana Housing FY25 and Beyond
In Q3 Ashiana Housing FY25, Ashiana saw a 28% YoY growth in sales bookings, thanks to the strategic launches of key projects and the expansion of its premium segment. However, the company emphasized that quarterly variations in sales will depend on the timing and success of new project launches.
Ashiana Nara: A Case Study in Successful Sales Execution
One of the most notable achievements of Ashiana in Q3 FY25 was the conversion of 293 units out of 336 units at their Ashiana Nara project into bookings. The success of Nara has exceeded expectations, with the company launching Phase 3 of the project earlier than planned due to overwhelming demand. The overall market response was strong, indicating a positive market outlook in most regions where Ashiana operates.
However, some approvals for additional units in Nara are still pending. Ashiana plans to launch 56 more units in Nara, which will increase the total number of available units to 392. The company is optimistic that these units will be sold off quickly, with sales expected to spill over into the next fiscal year.
Market Conditions in Key Regions
While the broader market remains buoyant, Varun Gupta highlighted that the Gurugram market has slowed down. This slowdown is not due to a lack of demand, but rather a result of increased competition and the higher number of choices available to prospective buyers. As more developers enter the market, buyers are taking longer to make decisions. Ashiana is still confident that Gurugram remains a healthy market, albeit less exceptional than it was a year ago.
For markets like Jaipur, Chennai, and Pune, the outlook remains positive. Ashiana has seen secular sales growth across these regions, demonstrating that the company’s strategy of geographical diversification is yielding dividends. The overall demand-supply situation in these markets remains favorable, with unsold inventory decreasing consistently quarter over quarter.
Realizations and Price Growth: Navigating Market Expectations
A key concern for any real estate developer is pricing. As competition in the real estate sector increases, managing realizations becomes more challenging. Ashiana, however, has been able to maintain relatively strong pricing, thanks to its focus on premium offerings.
Pricing Strategy for Ashiana Nara
In the case of Ashiana Nara, the realization per square foot was priced at ₹4,400, which some brokerage firms have noted as lower than prevailing market rates in the region. Varun Gupta explained that while the price may be on the lower end of their intended spectrum, it was part of a deliberate strategy to leave “returns on the table” for buyers. The idea was to offer buyers the opportunity to benefit from future price appreciation, thereby ensuring long-term customer satisfaction.
This pricing strategy aligns with Ashiana’s larger goal of making sure that its customers enjoy the upside potential in the future. Gupta further emphasized that despite the lower price point, the project has performed well, aligning with Ashiana’s original financial projections.
Outlook for FY25 Realizations
Ashiana expects its average realizations for FY25 to remain strong, despite the challenges in Gurugram. Although the company is set to miss the ₹2,000 crore pre-sales target due to softer performance in some markets, it remains confident about the overall outlook for the year. The planned launches in Gurugram Phase 5 will also contribute significantly to sales, and the company expects that Q4 FY25 will make up for the lag in the first three quarters.
Senior Living: The Growth of a New Market Segment
A major strategic shift for Ashiana Housing in recent years has been its increasing focus on senior living projects. This segment, though small in Ashiana’s portfolio, has become a focal point for growth. Given India’s rapidly aging population and the growing affluence among aged people, the company sees senior living as a structural growth opportunity rather than a cyclical trend.
The Senior Living Opportunity
Ashiana’s flagship Ashiana Swarang project has been well-received, providing a tailored living experience for aged people with all the necessary amenities. This shift towards senior living not only diversifies Ashiana’s offerings but also taps into an underserved market segment with significant growth potential.
The company believes that the aging demographics in India, combined with rising income levels among the aged people, will lead to sustained demand for senior living communities. Ashiana plans to continue expanding in this segment, seeing it as a key pillar of its long-term growth strategy.
FY26 Outlook: Maintaining Momentum Amid Challenges
Looking ahead to FY26, Ashiana remains optimistic about its prospects despite the slowdown in some key markets. The company’s performance in FY25 has laid a solid foundation for growth, and management believes that FY26 will see further improvements in both sales and pricing.
However, Gurugram’s market will continue to be a challenge. The increasing supply of high-end homes, combined with slower buyer decision-making, will keep pressure on Ashiana’s performance in the region. Nonetheless, the company remains confident that non-Gurugram markets will continue to perform well, with senior living projects playing an increasingly important role in the company’s portfolio.
No Formal FY26 Target Yet
While Ashiana has not yet set an official pre-sales target for FY26, Varun Gupta stated that the company would recalibrate its target once it has more visibility on the market conditions and sales performance in the first quarter of FY26. The company is likely to be conservative in its targets, given the current market dynamics and competition.
Conclusion
Ashiana Housing has shown resilience in navigating a complex real estate market. Their strategic focus on premiumization, geographical diversification, and senior living projects positions them well for future growth. While challenges in Gurugram and softer-than-expected sales in FY25 will slightly dampen the company’s performance, Ashiana remains on a solid growth trajectory.
As the company prepares for FY26, it is clear that senior living will be a key growth driver, alongside its continued focus on providing affordable yet high-quality housing across India. The strong customer demand in regions outside Gurugram and the company’s ability to strategically price their projects will allow Ashiana to maintain its position as a leader in the Indian real estate sector.
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Frequently Asked Questions
Q: What is Ashiana Housing’s pre-sales target for FY25?
A. Ashiana Housing set a pre-sales target of ₹2,000 crore for FY25. While they are on track, a slowdown in Gurugram may lead to slight underachievement.
Q: How has Ashiana Housing performed in Q3 FY25?
A. In Q3 FY25, Ashiana saw significant growth in sales bookings, with an increase in total area booked from 3.35 lakh sq. ft. to 6.75 lakh sq. ft. The average price per square foot also saw a rise due to premiumization.
Q: What is Ashiana Housing’s focus in the senior living segment?
A. Ashiana Housing is strategically expanding into senior living, with projects like Ashiana Swarang that cater to India’s aging population. This segment is expected to see structural growth.
Q: How did geographical diversification impact Ashiana’s sales?
A. Geographical diversification helped Ashiana balance risks, with solid sales performance in regions like Jaipur, Pune, Chennai, and Bhiwadi, offsetting a slowdown in Gurugram.
Q: Is Ashiana Housing concerned about competition in Gurugram?
A. Yes, the Gurugram market has become more competitive with increased supply, leading to longer decision-making times for buyers, which has affected Ashiana’s sales in the region.