Karyan Group will invest around ₹900 crore in a luxury residential project in Ghaziabad, with apartment prices expected to start at around ₹2 crore. The Noida-based real estate company has pegged the project’s gross development value (GDV) at nearly ₹1,500 crore.

In an interaction with Fortune India, Varun Garg, Director of Karyan Group, spoke about the company’s maiden luxury residential project and the challenges emerging from the ongoing West Asia crisis for the real estate sector.

He said that said the company will launch its first luxury residential project, Trevana Residences, strategically located on NH-24 opposite Wave City in Ghaziabad.

“The company will invest ₹900 crore and is targeting estimated revenue of nearly ₹1,500 crore from the development, reflecting growing demand for premium residences in emerging NCR micro-markets,” he said.

The realty firm plans to develop 608 units in the luxury residential project, of which 150 units have already been booked during the pre-opening phase. The homes and penthouses will be priced in the range of ₹2 crore to ₹6 crore.

The project will have a saleable area of around 16 lakh sq ft and is expected to be completed by 2030.

Karyan Group currently operates as a debt-free company and has already invested nearly ₹150 crore into the project through internal accruals.

Garg said the company does not foresee an immediate requirement for external fundraising for ongoing projects. However, if additional funding is required in the future, the company would prefer debt financing over equity dilution.

“As of now, whatever we have planned can largely be managed internally. But if needed, we would first look at debt funding rather than equity,” he said.

West Asia crisis raises cost pressures for developers

The project announcement comes amid growing concerns in the real estate industry over the impact of the ongoing West Asia crisis, which has sharply increased volatility in crude oil and commodity prices.

Developers across the country are facing pressure from rising construction costs due to higher prices of steel, cement, fuel and other crude-linked building materials. Industry experts have also warned of potential delays in project execution if inflationary pressures persist.

Commenting on the issue, Garg said the company has already factored in prevailing inflationary pressures and additional contingencies while planning the project.

“We have considered current inflationary costs and added around 10% contingency provisioning over and above that. Whatever has already been sold will not see any cost escalation,” he said.

However, he indicated that future price revisions for unsold inventory may be considered depending on how raw material prices move in the coming months.

“It is not necessary that current pricing will continue indefinitely. If costs rise substantially over time, future prices may be revised,” Garg added.

The launch also comes at a time when luxury and premium housing demand in NCR continues to remain strong, driven by rising income levels, aspiration-led buying and growing preference for larger homes with lifestyle amenities.

Garg said the company is positioning the project as a premium residential offering with a strong focus on architecture, landscaping and construction quality. The project has onboarded experienced consultants and designers associated with several marquee developments across Noida and NCR, he added.