Max Estates · tone and specificity signals across the available quarters.
Language signals
We underwrite conservatively as you know we have always strictly shared we underwrite without assuming that prices will increase. We underwrite assuming that it's going to take us an elongated period of time to sell and we underwrite assuming very high inflation in construction cost. So with that assumption we are continuing to be confident of 40% margins in outright and 20% margins on joint development.
In terms of overall demand sentiment and environment yes there is some sort of a cooling off at least that's what our partners share with us in terms of sentiment. Having said that... for Max Estates particularly we are not seeing that.
What we are achieving the last rental is 141 [per sq ft]. So the current rentals are already people are already sitting at a mark to market which is in excess of 10 to 15% when the new leases will come which kind of prompts the people to stick and stay with the company.
We see for us particularly that the inventory that we've sold almost 66 to 70% is driven by end users. Where we have seen families that have come and visited the experience center about five to six times at least.
The transaction has been concluded two and a half years ahead of the project completion and at a 35% premium to the prevailing micromarket rentals.
Once we give you the annual numbers since the launches would be happening as we speak and the 4 to 5,000 launches will happen in February March we would expect that we would be on track of our collection target for the year.
A substantial majority of our future reported revenue is already contracted, derisking the earnings trajectory materially.
We are cautiously optimistic and as you said yes it's primarily driven by the macroeconomic scenario and we're hopeful that if things settle things continue to be very optimistic in the future.
We have a very lean and healthy balance sheet. For a company with our scale of pipeline that presents a very strong position.