Urban touch in innovative spaces

SPR Group incorporates green living concepts and holistic schemes in its development projects in line with demands of a metropolitan population

SPR Group is a leading real estate developer focused on residential and commercial projects in Tamil Nadu. The group was founded in 1972 by Prithviraj S. Kawad. Its prestigious project, SPR Highliving, is Chennai's tallest tower with 45 floors. Excerpts from an interview with Hitesh Kawad, Managing Director of SPR Highliving:

What are your views on the current real estate scenario in Chennai?
Chennai has always been considered as one of the hotspots for real estate investments. Besides, the introduction of various regulatory reforms, escalation in capital values, increased urbanisation, relative affordability and developers' emphasis on organised development under the new RERA regime has further expanded the avenues for growth. While the city is definitely a better investment destination in contrast to other cities at present, I foresee still greater growth in the coming times.
What Chennai really was missing was innovation in real estate. We at SPR Highliving have successfully fulfilled that gap by introducing green living concepts, coming up with the tallest residential towers, India's largest wholesale market called 'Market of India', amongst other ventures. I believe that with healthy competition in the innovation space, the city's real estate can reach far greater heights.

Are prices expected to climb over the rest of 2018 and in 2019? If so, what are the reasons?
Looking back on what we've observed, 2017 was a pretty good year for us. Consistent month-on-month growth was witnessed across our properties - Osian Chlorophyll, Highliving District and Market of India. However, it's not fair to comment on prices on a short-term outlook. Reflecting on the prices over a seven-year period, most of our property prices have shown an appreciation of two to four times. I attribute this mainly to our product innovation that has attracted a lot of buyers within a short span of development as well as the location. I believe that the same trend will continue and the highest boom will be seen in properties that offer holistic living covering aspects like Work-Live-Play-Learn-Commune.

What is the demand-supply situation in the metropolitan city?
Having witnessed sustained growth over the years, the real estate industry continues to grow at a steady pace. Over the last decade, the city has witnessed increased development activity owing to increased urbanisation, growing prospects in the IT sector, influx of migration into the city and other factors.
Conventionally, Chennai's real estate is an end-user market in comparison to other cities that are largely driven by investors. As a result of this, there will be very little inventory available for resale in a couple of years, when compared to other markets.
In fact, recent reports indicate a steady decline in unsold inventory from 21 per cent in 2014 to 4 per cent at present, indicating the positive momentum towards which the industry is headed. The demand is huge, especially in growth hungry areas such as North and Central Chennai, as a majority of the population in these areas are on the lookout for world-class developments.

Are local authorities investing large sums in developing new infrastructure in the city?
While Chennai's infrastructure scores well over that in several major cities, the state government is keen on further enhancing it through several development initiatives. A comprehensive flood management plan for North and South Chennai has been proposed close to the tune of Rs35 billion. A Rs2 billion Chennai Peripheral Ring Road plan has also been recently approved, and will be commenced shortly. Urban infrastructure such as roads, drinking water supply and sewage facilities are also undergoing an upgrade. Work on the Chennai MRTS has been progressing at a rapid rate. Since infrastructure growth is one of the key drivers of property values, the initiatives adopted by the local authorities can create a significant impact on the city's real estate.

What are the projects being undertaken by your company?
We have a host of flagship projects and a number of ambitious ventures lined up. Currently, we are coming up with the largest mixed-use development in Chennai named SPR City. The 63-acre project will include Chennai's tallest towers, a first-of-its-kind organised wholesale centre named Market of India, a million sq ft mall, a renowned school, among other developments. Considering the high independent property prices in the city's core localities, residents are forced to opt for properties beyond the city limits in search of better amenities and infrastructure.
Our flagship project, SPR City at Binny Mills, Perambur, however, is designed to solve core urban problems by promoting healthy lifestyles and better standards of living.  The residential phase of the project, Highliving District, is spread over 18 acres. Offering residents access to over 65-plus amenities and 500,000 sq ft of greenery, it's one of the most promising residential ventures to be set up in the heart of the city.
On the commercial front, it's no different. Market of India is the first-of-its-kind wholesale complex that will organise all kinds of trade under one roof. Comprising over 11 markets, it has been built to accommodate the varied needs of traders and equipped with world-class facilities, such as built-in warehousing, spacious trade corridors, LCV parking, advanced security and more. It is expected to become a prominent business hub and is a major step in the right direction towards making the 'Trade in India' concept a reality.

Is there NRI interest in the property market in Chennai?
With the current real estate scene showing positive trends, NRI interest in the property market in Chennai has only been intensifying. Expat Indians are not only keen on purchasing a property in their homeland, but are also exploring real estate as an investment option. Besides the appreciating property prices, the city's economic growth has created an increased demand for better facilities and accommodation, which in turn can generate additional rental income for NRI investors. All these factors have made Chennai a hub for real estate amongst the NRI community.

Are you targeting the Gulf NRI market for these projects?
 Yes. All our projects are designed to global benchmarks and offer a range of world-class facilities meant to promote holistic living. The global appeal has certainly attracted attention from several NRIs. We want to take it further and will soon be setting up a Sales Office in Dubai. We are also looking to strengthen our Channel Sales by increasing the number of Channel Partners to 100 in the Middle East.

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