Shriram Properties eyes 35% growth in Chennai realty market

Shriram Properties Ltd. (SPL) is bullish about the Chennai real estate market and has a ‘strong pipeline’ of nine projects for development, CMD M. Murali said.

“The real estate sector is likely to grow by 20-25% this year,” he said. “We will be ahead of the market curve and post y-o-y growth of about 35%,” he told in an interview.

SPL has nine projects in Chennai with 15 million sq. ft under various stages of development. About 3.5 million sq. ft. has been set aside for office space and the rest for residential purposes.

“We have a strong pipeline of projects. We have aggressive growth plans and are bullish about it. Very soon, we will be entering Pune city,” he said.

Stating that SPL was in discussions with banks and financial institutions for another 15 projects in Chennai, he said that about eight projects were stuck due to financial constraints.

“Investors are willing to give it to us. We are evaluating it. We might be lucky to get two or three projects for development,” he said.

So far, SPL had developed ₹3,000 crore worth of properties in Chennai while projects worth ₹2,425 crore were in the pipeline.

Talking about the ongoing projects, he said that three projects have been completed ahead of schedule and another three were on track. These projects might get completed within the next two-three years.

SPL is also contemplating of developing a shopping mall measuring 7-lakh sq.ft., at Shriram Park 63, near Chennai.

“It has been sanctioned. We are thinking of giving a shape to it. We have provided some space for metro station landing at the residential zone. The phase-1 of the project is completed and has been handed over,” he said.