Casagrand bets on Dubai dip as war cools property market

Casagrand sees opportunity in the downturn. "The current market condition in Dubai has thrown up opportunities at good value," Mn said. "There are good deals available today." The company launched its first Dubai project, Casagrand Hermina, in December. The 131-unit development in the Dubai Islands district has a GDV of ₹1,250 crore. Sales so far total ₹500 crore.

Casagrand is also pursuing a domestic stock listing. Sebi issued observations on the company's draft IPO papers in June. The firm plans to raise ₹1,200 crore through a fresh issue, with promoters selling ₹20 crore in shares. A pre-IPO round of up to ₹240 crore is also under consideration.

The Dubai expansion adds risk. The market's recovery depends on a de-escalation of the conflict. A prolonged downturn could squeeze margins on the new projects and weigh on the company's valuation ahead of the IPO.

Other Indian developers are taking a more cautious approach. Sunteck Realty chairman Kamal Khetan said regulatory approvals are in place for the company's first Dubai project. The launch timing has been recalibrated and is "yet to be decided".

Casagrand's bet is that the current correction is temporary. If the market stabilises, the projects bought at lower prices could yield strong returns. If the conflict deepens, the company may face a longer wait for buyers. The location of the two new projects within Dubai was not disclosed.