Realtor Shriram Properties to invest Rs 750 crore in current projects in FY24

Realtor Shriram Properties to invest Rs 750 crore in current projects in FY24
Shriram Properties will spend around Rs 750 crore this fiscal on the construction of its ongoing and new residential projects as it appears to scale up the company amid strong housing demand, its CMD M Murali said. Bengaluru-based Shriram Properties spent Rs 500 crore in the last financial year on construction works.
Shriram Properties chairman and managing director M Murali highlighted that the company achieved a 25% growth in sales bookings to touch an all-time high of Rs 1,846 crore last fiscal on higher volumes and better price realization. Asked about the target of sales reservation for this fiscal, Murali said, "We are looking at about 20% increase in volume terms and 25% growth in value."
Sales volumes stood at 4.02 million square feet in the previous fiscal, which is a new record, as against 3.8 million square feet in 2021-22. The average annual sales realization expanded 8% annually through the last financial year. Shriram Properties is currently developing many housing projects and plans to launch multiple housing projects this fiscal to tap the increase in housing demand, Murali said.
Asked about construction spend, he said, "Last financial year, we spent Rs 500 crore, and this year we are aiming at about Rs 750 crore. This will mostly be in existing projects and some new ones that we will launch." Shriram Properties has delivered 36 projects so far, mostly in Bengaluru and Chennai. It is currently developing 26 projects/phases and has another 25 projects in the pipeline.
"Market is really good. There has been a very good demand for the mid-income and affordable segment. So, I expect the demand to continue for 3-5 years comfortably due to multiple factors. The macroeconomic situation is very good, and the overall stability in the country is good," Murali said. Consistent growth across all industries is helping the expansion of the real estate sector in a phenomenal way, he observed.