Suraj Estate Developers Expands Portfolio with 101 Crore Land Purchase in Mahim

Suraj Estate Developers, one of the key real estate player in Mumbai, has made an acquisition of a vacant land parcel in the Mahim area for a reported sum of Rs 101 crore. The plot, covering an area of approximately 1,464 square meters, will offer around 1.03 lakh square feet of RERA carpet area once developed. 

This acquisition forms part of Suraj Estate Developers’ strategic expansion, as the newly purchased plot is adjacent to another plot already acquired by the company for a commercial development. The combined area of both plots totals approximately 3,000 square meters, with an estimated saleable area of 2.1 lakh square feet. The total Gross Development Value (GDV) of this development is projected to be around Rs 1,000 crore.

The location of this plot is a key factor in the acquisition, as it offers excellent connectivity to major transportation networks. With nearby railway stations, the upcoming metro line, and a new flyover linking Senapati Bapat Marg to the Western Express Highway, the area is expected to witness significant growth. 

These infrastructural advantages make the project an attractive proposition for both residential and commercial developments. The site is expected to benefit from the growing demand for commercial spaces due to its strategic location, further enhancing its appeal to investors and prospective buyers.

In response to the announcement, Suraj Estate Developers’ share price saw a surge, jumping by 5% during early trade on Thursday. The stock reached an intraday high of Rs 706.95 on the Bombay Stock Exchange (BSE). 

Rahul Thomas, the Executive Director of Suraj Estate Developers, highlighted that this acquisition aligns with the objectives of funds raised through the issuance of equity shares and share warrants, amounting to Rs 343 crore. The company’s operational performance has also been strong, with a 14% increase in sales volume and a 10% rise in sales realization, signaling healthy growth and positive market sentiment.

Founded in 1986, Suraj Estate Developers has established a  presence in the South-Central Mumbai real estate market. The company is expanding into Bandra with 13 ongoing projects totaling over 20 lakh square feet of developable area and has 18 upcoming projects that will add about 9 lakh square feet. The company recently raised Rs 343 crore, with participation from high-net-worth individuals, asset management funds, and family offices.

Suraj Estate Developers is aiming for Rs 850 crore in pre-sales for the financial year 2025, with two major projects scheduled for launch in the second half of the year. One of the major developments is a commercial project on Tulsi Pipe Road, which will be one of the company’s largest. A residential project in Shivaji Park is also set to launch.

The company has delivered 42 projects, focusing on high-end residential and commercial spaces. Its ongoing and upcoming projects highlight its commitment to expanding its portfolio.

The Mumbai real estate market saw a 5% increase in property registrations in November 2024, according to Knight Frank India. A total of 10,216 units were registered, compared to 9,736 units in the same month last year. Despite a month-on-month decline from October’s performance, the market remains strong. Stamp duty collections also rose by 30% in November 2024 compared to the same month in 2023, showing a shift towards higher-value properties.

Properties priced at Rs 2 crore and above accounted for 23% of registrations in November 2024, up from 17% the previous year. In contrast, the share of properties priced under Rs 50 lakh decreased from 28% in November 2023 to 20% in November 2024. This trend indicates a preference for more expensive properties, which benefits projects like Suraj Estate Developers’ Mahim acquisition.

Suraj Estate Developers’ acquisition of the Mahim plot and its ongoing expansion in Mumbai’s real estate market reflect its growth strategy. With a diverse portfolio and focus on value-driven properties, the company aims to continue strengthening its position in Mumbai's competitive real estate market.