Shriram Properties tempers commercial expansion as office demand shifts

Shriram Properties will remain cautious about expanding its commercial real-estate portfolio as the effects of artificial intelligence on office demand and the continuing influence of work-from-home remain uncertain. Chairman and Managing Director M. Murali made the comments at a media briefing in Chennai on October 3, 2026, where he said the company would keep residential development as its primary focus.

The briefing also set out plans for growth in Chennai, including 3.3 million sq. ft. of additional development potential over the next three years. The company is targeting Chennai sales of more than Rs 2,100 crore, representing around 3.84 million sq. ft., during that period. Its current Chennai residential pipeline totals 4.95 million sq. ft., comprising 2.25 million sq. ft. under development and 2.70 million sq. ft. upcoming.

Commercial caution and Chennai plans

Murali said uncertainty about how AI will change office requirements is one factor behind the company’s measured approach to commercial real estate. He also pointed to work-from-home as an ongoing influence on office demand. Office space accounts for around 10% of Shriram Properties’ total development.

The company is not currently active in industrial real estate or warehousing. Murali described warehousing as a potentially significant opportunity, while the company’s immediate plans remain centred on residential development. For Chennai, planned land acquisitions are associated with an investment of approximately Rs 368 crore and targeted gross development value of approximately Rs 3,089 crore.

Murali also discussed cost pressures affecting residential construction. He linked escalating costs to the war and said affordability concerns limit the company’s ability to pass the full increase on to customers. Oil-linked inputs—including lifts, glass, sanitary products and tiles—have faced cost pressure.

Technology is one area under evaluation as the company responds to construction challenges. Robots are being used for painting, while robotic tiling is under consideration. Murali said deploying such technology across multiple projects could help improve its viability despite higher initial costs.

• Chennai residential pipeline: 4.95 million sq. ft., including 2.25 million sq. ft. under development and 2.70 million sq. ft. upcoming.
• Planned Chennai development potential over three years: 3.3 million sq. ft.
• Target Chennai sales over three years: more than Rs 2,100 crore, or around 3.84 million sq. ft.
• Projected Chennai revenue from FY2026-27 to FY2029-30: approximately Rs 3,300 crore.
• Expected handovers by the end of FY2027: more than 500 units, with an expected sales value of around Rs 250 crore.

Developer profile

Shriram Properties describes itself as a residential developer focused mainly on mid-market and mid-market-premium housing, with a presence in plotted development. It began operations in Bengaluru in 2000 and operates in Bengaluru, Chennai, Coimbatore, Visakhapatnam and Kolkata; the company has also entered Pune.

As of April 30, 2026, the company reported 51 delivered projects spanning 31.5 million sq. ft. Its pipeline comprised 41 projects covering 35.3 million sq. ft. The scale of that pipeline provides context for the company’s stated plan to deepen its presence in established markets rather than move immediately into additional cities.

What comes next

Shriram Properties is targeting company-wide pre-sales of around Rs 4,500–5,000 crore over the next three years, compared with about Rs 2,300 crore. It aims to lift revenue from around Rs 1,000 crore to Rs 2,700–3,000 crore and profit from Rs 60–70 crore to Rs 250–270 crore over the same period.

Chennai is expected to contribute approximately Rs 3,300 crore in revenue from FY2026-27 to FY2029-30. The company also expects to hand over more than 500 units by the end of FY2027. Its geographic focus is on building its presence in Bengaluru, Chennai, Pune and Kolkata.

On housing demand, Murali said he expects the second half of the year to be stronger, particularly through the festive period and into February. He said he believes demand is increasing and does not expect it to decline, citing the importance of homeownership to Indian families. At the same time, affordability remains a consideration as construction costs rise and the company seeks to balance input pressures with what customers can absorb.