Arihant targets two-year World Villas Phase 1 sellout

Arihant has sold about 60 of 178 World Villas Phase 1 villas and expects to sell the remaining homes within the next two years, management said on its earnings call. The disclosed sales represent roughly 34% of Phase 1 inventory, while villa construction and surrounding infrastructure work continue at the site.

How many World Villas has Arihant sold?

Arihant has sold about 60-odd villas from the approximately 178 villas launched in World Villas Phase 1. Using the rounded figures disclosed by management, that represents about 34% of the phase, leaving an implied balance of roughly 118 villas. Arihant did not disclose booking value, collections, average selling price or cancellations for the villas sold.

An analyst on the call referred to a broader World Villas estimate of 391 villas and gross development value, or GDV, of about Rs 1,200 crore. Arihant's response specifically confirmed the 178-villa Phase 1 launch and the 60-odd sales, but did not confirm the 391-villa count or Rs 1,200 crore GDV in that answer. The concrete reported milestone is therefore the initial Phase 1 sales progress.

When will Arihant sell the remaining World Villas homes?

Arihant expects the balance sales from World Villas Phase 1 to occur over the next two years. Based on the stated 178 villas and about 60-odd sales, the target applies to approximately 118 remaining villas, although that balance is an estimate calculated from rounded numbers rather than a management-provided unit count.

Management said construction of the villas and development of surrounding infrastructure were progressing at the site. It said current expenditure and physical progress should support better pricing and more revenue going forward. Arihant did not provide a construction-completion percentage, infrastructure completion date, revised project GDV or annual sales targets for the two-year period.

The two-year expectation is a sales timetable for the Phase 1 balance, not a stated completion date for the entire World Villas development. Arihant described the villa format as having a long gestation in the Mumbai Metropolitan Region, or MMR, and did not provide a schedule for later phases, if any, or a project-wide revenue-recognition timetable.

What could support World Villas pricing and sales?

Arihant said continued villa construction and infrastructure development could support better pricing and revenue at World Villas. Management did not quantify a proposed price rise or disclose the current ticket size, price per square foot, sales velocity or collection rate for the 178-villa Phase 1.

In its wider residential portfolio, Arihant said mid-income homes priced from Rs 50 lakh to Rs 1.5 crore had seen healthy absorption at Kharghar, Panvel and Shilphata. Management also said the luxury segment was performing better than affordable and mid-income housing at the time of the call. Since World Villas ticket sizes were not disclosed, the transcript does not establish a direct comparison between its buyer segment and those cited projects.

The broader presales backdrop included an analyst's observation that presales declined about 27% year on year, while units sold fell from around 280 to 236. Arihant attributed the decline to its focus on selling inventory at multi-phase projects and said it had planned more launches in Panvel during the third and fourth quarters. Those launches are separate from the World Villas Phase 1 balance-sales target.

How does World Villas compare with Arihant's other projects?

World Villas is further advanced commercially than Town Villas because World Villas Phase 1 has launched 178 villas and sold about 60-odd, while Town Villas approvals are still in progress. Arihant said Town Villas will not launch in the current financial year and is instead expected to launch in the next financial year.

Town Villas has expanded from around 76 acres a year earlier to almost 99.5 acres, according to Arihant. Management said the larger land area and design changes increased its planned saleable area to around 58 lakh square feet, with an estimated GDV of about Rs 4,800 crore. World Villas, by contrast, has a disclosed two-year target for sales of the Phase 1 balance but no stated current saleable area.

Arihant said it was working on a total of 320 acres across its projects. It identified Town Villas at Chowk and another 7-8-acre Panvel project as the two projects not yet started, while stating that the rest of its portfolio had commenced and would be developed in phases. This places World Villas within an active residential pipeline rather than among the projects awaiting launch.

When will Arihant's hospitality income begin?

Arihant expects annuity income from its hotel and Club 10 Gymkhana assets to begin contributing to profit and loss from FY30 onwards. Management said hotel work was starting in the third quarter, while neither the hotel nor the Gymkhana had sales at the time of the call.

The hotel is held in a different entity, and Arihant said Gymkhana revenue recognition would differ from its residential projects. Management added that both assets would require construction financing, whereas the company's other projects were expected to remain operationally cash-flow positive. It did not disclose FY30 annuity income, capital expenditure, financing amounts, hotel capacity or club membership revenue.

Arihant said it was focusing on hospitality because Chowk and Khalapur had demand, limited supply and an ecosystem suited to that segment. It said data-centre opportunities on its outskirts Panvel land were limited by inadequate electricity and water infrastructure, and that data centres were not currently in its plan. The FY30 annuity expectation is therefore separate from the two-year World Villas sales plan.

Conclusion

Arihant has established an initial monetisation marker for World Villas: about 60-odd of 178 Phase 1 villas have sold, with the balance targeted for sale over two years. The project is being developed alongside infrastructure works, while the company continues residential activity across 320 acres and prepares the larger Town Villas project for a later launch.

The next measures to watch are sales from the implied roughly 118 Phase 1 villas still available, any disclosure on pricing or collections, and construction progress at World Villas. Management also expects Panvel launches in the third and fourth quarters, Town Villas to launch in the next financial year after approvals, and hotel and Club 10 Gymkhana annuity income to begin only from FY30 onwards.