Rustomjee Group Ventures into Plotted Development with 88-Acre Land in Kasara

Real estate developer Keystone Realtors, known as Rustomjee Group, has ventured into the plotted development market by acquiring an 88-acre land parcel in Kasara near Mumbai.

The company plans to develop around 500 plots of various sizes on this land, totaling approximately 1.5 million sq ft. This move is driven by the growing demand for second homes.

“This is a significant milestone for Rustomjee, reflecting our strategy to diversify and grow. We see strong demand in the plotted development segment, which lacks organized and branded developers,” said Boman Irani, CMD of Keystone Realtors.

The total cost of the land is ₹91 crore, with ₹1 crore already paid and the remaining ₹90 crore to be paid over the next two years.

Irani highlighted that this venture fits well with Rustomjee’s business model, as plotted developments offer quicker cash flows and higher profitability. The company has applied for project registration under the Real Estate Regulatory Authority (RERA) and plans to launch the project this quarter.

To support its growth plans, Rustomjee raised over ₹800 crore through a qualified institutional placement (QIP) in May. The company reported a 22% increase in pre-sales, reaching ₹611 crore for the quarter ending in June. They also added a redevelopment project with a 350,000 sq ft saleable area and a gross development value of ₹984 crore.

The demand for second homes and plotted developments in India is rising due to urbanization, a growing middle class, and a desire for weekend retreats or investments. Developers are investing in regions with scenic landscapes, good connectivity, and potential for appreciation, particularly near metropolitan cities, hill stations, and coastal areas. These developments offer modern amenities and natural beauty, appealing to buyers seeking comfort and a break from urban life.