| The 25-year-old real estate company is slated to start the construction of five projects in Chennai with an investment of Rs 50 crore in the next three months. The company plans to close the current financial year with a turnover of Rs 35 crore as compared to Rs 27 crore last fiscal. |
| Speaking to Business Standard, Naresh Jain, executive director of Vijay Shanthi Builders Limited, said: "The results of a study undertaken, along with housing finance companies has shown a rise in demand for apartments that cost over Rs 50 lakh. We expect to start the construction of the five projects in the next three months. The projects will come up on 2,00,000 sq ft in Chennai." |
| Jain pointed out that major housing finance companies do about six to seven large ticket size of Rs 50 lakh a month. The high-end apartments' business in Chennai is estimated between Rs 240 crore and Rs 300 crore. |
| "So far, we were concentrating only on the low and middle apartment segment.The large chunk of demand still lies for apartments that cost between Rs 10 lakh and Rs 25 lakh," he said. |
| "In the case of large ticket size of Rs 50 lakh apartment, the location of the project was critical for it has a high consumer demand unlike the middle apartment segment. The increase in the income of people employed in the information technology (IT) and ITES industry has led to the growth in the high-end apartments," Jain added. |
| When asked whether Vijay Shanthi Builders plans to construct IT parks, Jain said that they will only concentrate on promoting residential apartments and will not venture into the comsmercial front. |
| "As opposed to the commercial segment, residential construction was less riskier and more profitable. Unlike building commercial space where the funds will come in only when the project is fully completed, in residential apartments there is continuous flow of funds from clients. The investments for setting up a residential complex is also far less as compared to the former," he said. |
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