Prestige Group Exits Lutyens’ Delhi with ₹450 Crore Bungalow Sale, Clocks ₹150 Crore Gain

• Prestige exits Lutyens’ Delhi after 22 months with ₹150 crore profit

• Regulatory delays stalled plans for a boutique luxury project

• Deal underlines enduring demand for trophy properties in LBZ

Prestige Group, one of India’s leading real estate developers, has sold a high-value bungalow in Lutyens’ Delhi for approximately ₹450 crore, booking an estimated ₹150 crore profit in just 22 months. The transaction marks a notable exit from one of the country’s most exclusive and tightly regulated real estate zones and highlights both the opportunity and complexity of ultra-prime property development in India.

The property, located on Kasturba Gandhi Marg within the prestigious Lutyens’ Bungalow Zone (LBZ), was acquired by Prestige in 2023 from TDI Infratech for around ₹300 crore. Initially, the Bengaluru-based developer had planned to develop a boutique luxury residential project on the site. However, prolonged regulatory and approval-related challenges eventually led the company to monetise the asset instead.

Why the Deal Matters

The sale stands out as one of the largest standalone bungalow transactions in recent years in Lutyens’ Delhi—an area known for housing ministers, senior bureaucrats, and diplomatic missions. Land availability in LBZ is extremely limited, and properties here are considered “trophy assets,” often commanding prices unmatched elsewhere in the country.

Despite its elite status, Lutyens’ Delhi remains one of the most challenging zones for redevelopment. Any demolition or construction activity requires multiple clearances due to heritage norms, planning restrictions, and government oversight. Industry experts say that while values remain exceptionally high, project execution timelines can stretch unpredictably.

Regulatory Roadblocks and Strategic Exit

Prestige Group had envisioned developing 8–9 ultra-premium residences on the site. However, navigating approvals in LBZ proved time-consuming. The area spans nearly 28 square kilometres and is governed by some of the strictest urban planning regulations in India.

Faced with approval delays and rising holding costs, Prestige chose to exit the project and capitalise on the strong appreciation in land value. The decision reflects a growing trend among developers to prioritise capital efficiency and faster execution, particularly in a market where regulatory certainty plays a critical role.

Shift in NCR Strategy

While Prestige has stepped away from this Lutyens’ Delhi project, it has not scaled back its ambitions in the Delhi-NCR region. Instead, the company has sharpened its focus on large-format, scalable developments with clearer approval pathways.

Its flagship NCR project, The Prestige City, Indirapuram, is a 62.5-acre integrated township in Ghaziabad featuring residential, retail, and lifestyle components. The developer has already launched multiple phases here, recording strong sales and bookings running into several thousand crores.

Industry observers note that this approach allows developers like Prestige to reduce regulatory risk while tapping into sustained housing demand across the NCR’s high-growth corridors such as Ghaziabad, Noida, and Gurgaon.

What the Deal Says About Lutyens’ Delhi

The Lutyens’ Bungalow Zone continues to command extraordinary valuations despite development constraints. Recent transactions underline this trend:

• A 3,540 sq yard bungalow on APJ Abdul Kalam Road reportedly sold for ₹310 crore earlier in 2025.

• Prestige’s ₹450 crore sale now sets another benchmark for land pricing in the zone.

These deals reinforce LBZ’s status as one of India’s most exclusive real estate markets, where ownership is driven more by prestige and long-term value than by development yield.

Industry Perspective

Real estate experts say the transaction highlights a broader shift in developer behaviour. Ultra-luxury standalone projects demand not just deep capital reserves but also patience and regulatory agility. In zones like Lutyens’ Delhi, where approvals can take years, many developers are increasingly opting to exit early at a profit rather than lock in capital indefinitely.

For Prestige, the sale has unlocked significant liquidity, enabling reinvestment into projects with higher scale, faster turnover, and predictable execution.