Sobha Group will soon enter Mumbai's luxury housing sector, says founder Menon

Fri, 05/24/2024 - 08:14

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According to its founder PNC Menon, the real estate company Sobha Group has set out an ambitious plan for growth for its operations in India and will soon join the Mumbai luxury housing market. The company's goal is to reach more than a four-fold jump in annual sale bookings to Rs 30,000 crore in the next four to five years.

Encouraged by its success in the Dubai real estate market, where Sobha Group recorded sales of Rs 35,000 crore in 2023, Menon, the richest man in Oman, plans to duplicate the same level of business scale and quality standards in the Indian market.

Here, the Sobha Group's Dubai-based company, Sobha Realty, has created a sizable resort-style luxury township known as "Sobha Hartland," utilizing total backward integration to guarantee quality. Here are a couple more projects and another township under construction.

"Our India business Sobha Ltd will enter the Mumbai market. I have a dream, we have to show something which India has not seen. We are going to follow the same methodology that we do here. When you do that, it becomes expensive. The cost will go up. The only place in India which can pay is Mumbai," Menon said.

"So what we are trying to do is to pick up some land, build beautifully to the highest international standards. Like what you see here. Because Mumbai can afford to pay, that I have seen," said 76-year-old Menon, Chairman Emeritus of Indian entity Sobha Ltd.

One of the major companies in South India, Sobha Ltd., went public on Indian stock exchanges in 2006 and is currently exploring all of the options for acquiring land parcels in the Mumbai area, including outright purchases, joint development with land owners, and redevelopment of existing housing societies.

Chairman of Sobha Ltd. Ravi Menon elaborated on the development strategy, saying, "We are looking at entering Mumbai." Because Mumbai's market contains a number of smaller markets. We are therefore investigating across. As such, we have no preferences.
He added, "I think hopefully by next year, mid of next year, we should be able to break ground," and suggested the business might start with a modest project.

"Hopefully we can replicate the Dubai model, using Mumbai as a city which has a market and can absorb that sort of price," Ravi said.

"Now, you know, we are not in that game. We are in a quality game. Wherever we do, it will be very difficult to compete with us in terms of quality," PNC Menon said.
Nevertheless, Sobha Group has set a high growth target of sales bookings for India business in the coming years.

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