Real Estate

Salarpuria Sattva shifts focus from commercial to residential space

Anil Urs Bengaluru | Updated on November 27, 2017

Salarpuria Sattva, the Bengaluru-based property developer, has realigned its development portfolio to focus more on residential space. “The group’s residential development is 60 per cent of our portfolio vis-à-vis 25 per cent a few years ago,” Bijay Agarwal, managing director, Salarpuria Sattva Group told BusinessLine.

“In the current fiscal, we have witnessed good growth in the residential portfolio and we have seen good response to our new launches,” he added.

The group has set a target to launch up to 5,000 residential units by March 2015. “We are on track to achieve this target. So far we have released 2,000 units. More projects are in the pipeline for launch in the next two months,” he said.

The city’s residential market is a consumer’s market at the moment and also very attractive for high net worth individuals (HNIs) and non resident Indians (NRIs). “The market has been good for us and we are experiencing a steady growth. We are also experiencing good growth in other markets as well. We are active in Hyderabad,” Agarwal said.

“With inflation coming down and expectation of interest rate reduction to follow due to economic growth, we expect the demand to grow. For us, commercial lease is also good at present,” he added.

In terms of residential, retail and office space, the group has seen a product mix of 60:40 residential to office space. As far as the bottom line is concerned, it is the revenues from the commercial vertical which is contributing more.

“In the commercial property space, the group has achieved success in leasing out built-to-suit spaces,” Agarwal said.

The group is catering to the premium and luxury segment in the residential market. The average realisation per square feet has gone up in its projects. According to Agarwal “We have projects catering to the premium and luxury segment with a ticket size ranging from Rs 50 lakhs to Rs 2 crore. Overall, average realisation is in the range of Rs 5,350 per square feet.”

Published on December 18, 2014

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