We aim to expand our footprint with several new projects that cater to our customers’ evolving needs.
Jagadish Nangineni,
How is the real estate sector performance this year? What are the key trends to look for in 2024-25?
The real estate sector performed remarkably well last year, with residential, commercial, and retail segments experiencing significant growth. The shift towards a hybrid work model in metros and a desire for larger living spaces have driven a notable rise in launches of new homes that can meet these demands.
Looking ahead to 2024-25, some of the key areas for developers to focus on would be:
· leverage technology to increase the pace of construction to cater to the recent volume surge and resource shortage
· relook at other segments of the demand pyramid, apart from luxury products
· integrate higher energy efficiency designs.
How is the company doing this year in terms of project execution and sales? Which are the key projects?
In the previous fiscal, SOBHA maintained a strong momentum in project launches, achieving a significant milestone of launching approximately seven million square feet of residential space, the highest in the company’s history. We increased our delivery too with 4.45 million square feet completions, with over 50 homes per week.
As far as 2024-25 is concerned, the company is comfortably placed in terms of project execution and sales and plans to launch at least nine million square feet across 10 to 11 projects in Bengaluru, Gurugram, Tamil Nadu, and Kerala during April-March 2024-25, indicating a robust growth trajectory.
Our recently launched residential projects are SOBHA Crystal Meadows and SOBHA Neopolis – Bengaluru, SOBHA Elysia – GIFT City - Gandhinagar, SOBHA Aranya – Gurugram, SOBHA Ridge-Whispering Hill – Thiruvananthapuram and SOBHA Conserve – Chennai.
What difference do you experience this year in buying trends in residential and commercial segments?
As SOBHA’s focus is primarily on residential projects, we have noted a significant shift towards larger homes that can accommodate home offices and remote learning spaces, highlighting the importance of multifunctional living areas. Apart from a demand for connectivity and accessibility, buyers are seeking more open environments where they can socialise with each other in their integrated communities. There is also a greater preference for enhanced amenities, attention to detail in design and execution, and a seamless integration of aesthetics and practicality.
What are the key challenges faced in the project execution on various fronts?
SOBHA’s backward integration model of design to delivery reduces the risk of project completion delays and increases the quality consistency across projects. Our ability to scale delivery is dependent on our capability enhancement amongst our people. We have a unique training approach for people in all trades, activities, and levels. This model has greatly improved our operations by bringing all essential processes of production—from raw materials to final product delivery—under our direct control. Backward integration also leads to enhanced efficiency, and a more agile response to potential issues, ultimately ensuring smooth and successful project execution and timely delivery.
However, market dynamics, such as consistent availability of people resources, supply chain issues impacting material supplies, and volatile input prices of commodities do require swift decision-making and effective tactical strategies.
What are your plans for the year 2024-25 and beyond? Which are the key projects coming up?
SOBHA plans to launch at least nine million square feet across 10 to 11 projects in Bengaluru, Gurugram, Tamil Nadu, and Kerala during the April-March 2024-25 period. The company launched approximately seven million square feet of real estate in the last financial year, marking the highest achievement in its history. Around 50 to 60% of this year’s planned launches will be in Bengaluru, with the remaining spread across other regions. We aim to expand our footprint with several new projects that cater to our customers’ evolving needs. Our key projects are:
SOBHA Crystal Meadows: Luxurious rowhouses located in the heart of Bengaluru’s prime IT hub, offering a total of 290 4 BHK units with sizes ranging from approximately 4,200 to 4,800 square feet, catering to high-level professionals with offices in Sarjapur Road, Bellandur, Outer Ring Road, and Marathahalli micro-markets.
SOBHA Elysia: This luxury apartment project spans 2.65 acres within GIFT City and includes two towers housing a total of 572 units, available in 3 and 4 BHK configurations, with sizes ranging from 1,870 to 2,625 square feet.
SOBHA Ridge-Whispering Hill: Following the success of SOBHA Meadows – Whispering Hill in Thiruvananthapuram, we launched another luxury project on the same site, spanning 2.78 acres. This new project comprises 110 apartments in 3, 3.5, and 4 BHK configurations, with sizes ranging from 1,750 to 2,759 square feet.
SOBHA Atlantis: A luxury apartment project is currently under development in Kochi, spanning 2.35 acres. The project comprises two towers and offers 192 units, including spacious 3 and 4 BHK apartments ranging from 1,850 to 3,118 square feet.
How do you look at the future market opportunities?
Economic growth, job creation leading to migration, increased purchasing power and confidence in individuals over their future prospects are the key growth drivers for the real estate market. India is currently witnessing a surge in confidence and optimism on what has been achieved in the recent past, particularly after COVID. Hence, we are optimistic about future market opportunities in real estate in an ever-changing demand environment. SOBHA is well-positioned to capitalize on these opportunities, leveraging our strong brand reputation, customer-centric approach, and commitment to excellence. We are in a stronger position today in our financial and organizational structure to deliver on the growth opportunities, with continuity in our unique operating model.
