Interview with Murali Malayappan, Shriram Properties
Launched in 1995, Shriram Properties, a part of the Shriram Group founded in 1974, has an extensive presence across South India. Murali Malayappan, Manging Director,Shriram Properties speaks to Realty Plus about the real estate market potential and challenges as well as the company’s growth plans.
The company’s real-estate operation and presence
It was in the year 1997 that Shriram Properties launched its single project in Bangalore followed by projects in Chennai, Coimbatore, Vizag and Hyderabad. In 2005, the Indian markets were opened to FDI and utilising that opportunity, we further consolidated our realty business. Recently, the company has extended its real estate operations to Kolkata with a large township project. We have delivered over delivered about 12 million square feet and another 15 million square feet is under-delivery. In next 18 months the company expects to deliver close to 21 million square feet including both the residential and commercial properties across the cities. About 1.7 million square feet of commercial space has been delivered and 2.7million square feet is under construction.
The real estate market scenario and buyers trends
I would map Indian real estate to Bengaluru, Chennai and Hyderabad in South, Mumbai and Pune in West, Kolkata in East and the NCR region in North that cover 90 per cent of the realty market of the country. Cities of Ahmedabad and Kochi are the emerging players in the real estate market.
The South residential real-estate is more buyers’ driven than a speculative market. Bengaluru is 80% end user market and maybe 15-20% investor driven. Chennai and Hyderabad are even more buyer’s oriented residential realty markets. In India, next to gold, real estate is seen as the best investment avenue and therefore many look at buying a second home as safe investment rather than a speculative buying.
In terms of demand Bengaluru remains ahead of all cities. NCR region has 40 per cent of real estate market but is speculative and not dependable as it can crash any time while, South market is very safe and dependable.
In last four to five years, 10-12 million square feet of IT space absorption has happened in Bengaluru, Chennai is strong in manufacturing sector and Hyderabad is emerging as IT destination due to investor and business friendly government there which is why in the last two years, IT absorption has gone from zero to four-five million square feet in Hyderabad.
As a company we want to remain India specific, firstly looking at Ahmedabad and Kochi as next destinations for developing properties, leveraging the goodwill of our brand. Our thrust will also be on affordable housing in the markets we are already operating. The company functions in the mid-market segment and maybe in near future we will explore Mumbai market as well.
To read more: http://realtyplusmag.com/building-public-private-synergy/