Suraj Estate Developers buys land in Mumbai's Mahim area for Rs 101 crore

Suraj Estate Developers, a real estate player in Mumbai, has acquired a vacant parcel of land measuring approximately 1,464 square meteres for Rs 101 crore. This plot, once developed, will offer approximately 1.03 lakh square feet of RERA carpet area. It is located adjacent to another plot previously purchased by the company for a commercial development. The two combined plots will total about 3,000 square meters with an estimated saleable area of 2.1 lakh square feet and a Gross Development Value (GDV) of Rs 1,000 crore.

 

The location boasts excellent connectivity, with nearby railway stations, the upcoming metro line, and a new flyover linking Senapati Bapat Marg to the Western Express Highway. 

Suraj Estate Developers share price jumped 5% in early trade on Thursday after the company announced that its subsidiary acquired a major land parcel in Mumbai. The stock rose to an intraday high of Rs 706.95 apiece on the BSE.

 

   

 “This acquisition fulfils the objectives of the funds raised through issue of equity shares and share warrants on preferential basis amounting to Rs.343 crore. Our operational performance in the last quarter has also been exceptional, marked by a 14% increase in sales volume and a 10% rise in sales realization. Looking to the growing demand for commercial spaces given the strategic location of the land, we are confident about the success of the project," said Rahul Thomas, Executive Director, Suraj Estate Developers.

 

Suraj Estate Developers, established in 1986, has built a reputation for developing residential and commercial properties in South-Central Mumbai. The company is currently expanding into the Bandra sub-market, with 13 ongoing projects totaling over 20 lakh square feet of developable area and 18 upcoming projects that will add approximately 9 lakh square feet to its portfolio. 

Recently, the real estate company had raised Rs 343 crore—Rs 100 crore through share warrants and the balance via preferential equity shares.A group of high-net-worth individuals, asset management funds and family offices participated in the successful fundraising round.

 

The company is on track to achieve its Rs 850-crore pre-sales guidance for the financial year 2025, with the launch of two big projects in the second half.  Its commercial project in Tulsi Pipe Road will be one of the biggest commercial projects that it will be doing. Also, there is one launch in Shivaji Park in the residential segment.

 

Till date, the realty major has delivered 42 prestigious projects. Focused on high-end residential and commercial spaces, the company currently has 13 ongoing projects with a total developable area of over 20.3 lakh square feet. Additionally, Suraj Estate Developers has 18 upcoming projects, set to add approximately 9 lakh square feet of premium living and commercial space to its growing portfolio. 

Meanwhile,  Mumbai (area under Brihanmumbai Municipal Corporation) witnessed a 5% increase in property registrations in November 2024, with 10,216 units registered, compared to 9,736 units during the same month last year, as per data from Knight Frank India. This growth reflects sustained demand in the housing market despite a month-on-month decline from October's robust performance, when 12,960 units were registered. Stamp duty collections saw a significant 30% rise in November 2024 compared to November 2023, indicating a preference for higher-value properties.

 

According to Knight Frank India, the dip in the number of properties registered in November compared to October may reflect a market pause following October’s robust performance further catalysed by elections in the state.

 

Demand for higher-valued properties saw a significant increase, with properties priced at Rs 2 crore and above making up 23% of registrations in November 2024, up from 17% the previous year. Transactions in this segment totalled to 2,147 properties. Meanwhile, the share of properties valued at less than Rs 50 lakh dropped sharply, falling from 28% in November 2023 to 20% in November 2024, Knight Frank India said in its analysis.