Bengaluru-based real estate major Shriram Properties (SPL) has announced its intentions to develop 5.4 million square feet (msf) of property in the fiscal year 2023-24, with an estimated sales value of Rs 28 billion. In the recent months, real estate sector in major cities across India has witnessed strong demand. In Mumbai market, the prices have firmed up but still the sales are robust. Property majors in Mumbai, Bengaluru and NCR region have registered strong demand. SPL aims to pre-sell 4.8 msf of this space, totaling approximately Rs 23.3 billion. According to SPL's Managing Director, M Murali, the company plans to launch a total of 11 projects in Bengaluru, Chennai, and Kolkata, including three major projects in Bengaluru.

Murali stated in an interview with the media, "In the previous year, we projected presales volume ranging from 4.25 to 4.5 msf in FY22-23, and we achieved 4.02 msf. For the current year, we have set a confident target of 4.8 msf."

SPL experienced a significant rise in its profit after tax (PAT) from Rs 180 million in FY21-22 to Rs 680 million in FY22-23. The company intends to increase its construction expenditure from Rs 5 billion in FY21-22 to Rs 7.53 billion in FY23-24.

During this fiscal year, approximately 67 percent of the projects will be developed in collaboration with other developers or landowners.

The initial two project launches are scheduled for the first quarter in Bengaluru. Last year, Bengaluru accounted for around 62 percent of SPL's launches, while Chennai and Kolkata accounted for 22 percent and 16 percent, respectively.

In Chennai, four projects with a development potential of 2.9 msf will be introduced, and in Bengaluru, six projects with a development potential of 1.6 msf will be launched. Additionally, one project is planned for launch in Kolkata.

SPL will explore opportunities in the northern, southern, and eastern parts of Bengaluru. In Chennai, the new launches will focus on the southern, south-eastern, and western areas of the city. SPL's attention in Kolkata will be on Uttarpara, located in the north of the city.

Murali mentioned, "The average rate for 1,200-1,300 sq ft apartments will be approximately Rs 6,000 per square foot. Around 57 percent of the launches will be in the mid-market segment, 21 percent in plotted development, 8 percent in the luxury segment, and the remaining in the affordable range."

By the end of this financial year, the company also plans to enter the residential real estate market in Pune.

In Bengaluru, construction is currently underway for a villament project in Sarjapura. Phase 1 of the project, with a development potential of 600,000 square feet, is expected to be completed by March 2024. Each unit in the project will be priced between Rs 1.6-1.7 crore.