“We don’t know what AI is going to do,” M Murali, Chairman and Managing Director, Shriram Properties, said at a media briefing in Chennai. The company is also factoring in the continuing impact of work-from-home on office demand. Around 10 per cent of its total development is related to office space.
It is currently not into industrial real estate and is not active in warehousing, though Murali said warehousing could be a significant opportunity.
Residential development will remain the major focus, with Chennai forming a key part of the company’s growth plans. Shriram Properties currently has a 4.95 million sq ft pipeline in Chennai, including 2.25 million sq ft under development and 2.70 million sq ft upcoming.
Over the next three years, the company plans to add 3.3 million sq ft of development potential in Chennai. It proposes to invest approximately Rs 368 crore for the acquisition, with a targeted gross development value (GDV) of approximately Rs 3,089 crore.
The company is targeting sales of more than Rs 2100 crore, representing around 3.84 million sq ft, from Chennai over the next three years. Projected revenue from the Chennai market is approximately Rs 3300 crore over 2026-27 to 2029-30.
Shriram Properties expects to hand over 500-plus units by the end of FY27, with an expected sales value of around Rs 250 crore.
Murali expects the second half of the year to be stronger for housing demand, particularly during the festive season. “When you take the second half of the year, it is always a higher growth.
First half normally, compared to the second half, is lower. Particularly when Dasara, Diwali, Pongal start, until February, the second half is obviously busy here. So the demand is always there,” he said.
Cost escalation remains a challenge. Murali linked the increase in construction costs to the war and said the company could not pass the entire increase on to customers because of affordability concerns. Oil-linked inputs such as lifts, glass, sanitary products and tiles have seen pressure, he said.
The company is also turning to technology to address construction-related challenges. Robots are already being used for painting, while robotic tiling is being evaluated. The technology could involve higher upfront costs but may become viable when deployed across multiple projects, Murali noted.
For now, the company plans to deepen its presence in its existing markets of Bengaluru, Chennai, Pune and Kolkata rather than immediately expand into new cities.
Murali said that repeated concerns over a slowdown in housing demand had not changed his view of the market. The pandemic reinforced the importance of owning a home among Indian families, he said.
“People want to own a house. That’s the most important. If they get Rs 100, they want to spend Rs 60-70 for creating a shelter for them. That’s increasing now,” Murali said.
“Hence now the demand for housing is only going up. I don’t see it coming down,” he added.
Overall, Shriram Properties is targeting pre-sales of around Rs 4500-5000 crore over the next three years, from about Rs 2300 crore.
It aims to raise revenue from around Rs 1000 crore to Rs 2700-3000 crore and profit from Rs 60-70 crore to Rs 250-270 crore in the next three years. Murali described the broader ambition as “double, triple and quadruple the numbers”, while stressing that the existing market provides enough headroom to pursue these targets.