Indian real estate: Sobha on expansion mode

Bangalore-based real estate developer Sobha Limited is planning to double its size by adding 7 million sq feet of salable areas. Using its unique backward integration model, the developer is poised to strengthen its position in material suppliers market.

Sobha’s vice chairman and managing director J C Sharma told Business Standard that, "We have seen a positive market sentiment after the formation of new government headed by Narendra Modi. However, the real estate in India is yet to see any growth even though we have a positive economic condition. Seeing the current scenario, we feel that the recovery is not far away for the sector."

The realty firm is presently developing 50 projects across India covering 24 million sq ft of saleable area. The company has its presence in 24 cities across 13 states.

Sharma said, "We have planned about 15 million square feet of new project launches in the coming quarters to extend our existing geographies. Apart from this, we have about 50 residential projects in the developing state aggregating to 31.14 million square feet of developing area and 23.96 million square feet of saleable area. We have 31 ongoing projects covering 9.35 million square feet under various stages of construction on the contractual front. We are hopeful that we will continue to cater to the emerging needs of the realty sector."

Sobha is expanding in Pune by developing new projects and has tied up with smaller developers. The company sources said it has targeted to develop over one million square feet of residential space in Pune. The company has recently announced Rs 250 crore project in Pune which will have a commercial lifestyle club, duplex and three and four BHK apartments.

Sobha Developers is the only real estate company in India which has been following backward integration model which enables the company to manufacture all the key components used in construction in house - from concrete blocks to aluminum windows.