Sundaram Home seeks to consolidate the South by growing in Telangana and Karnataka
Sundaram Home Finance establishes its sixth location in Hyderabad as Telangana develops into a significant growth market. Given better development possibilities fueled by infrastructure and real estate growth, Sundaram Home Finance is trying to strengthen its hold on the southern market. The lender with its headquarters in Chennai plans to increase its footprint in Tamil Nadu, one of its traditional strongholds, as well as in Karnataka and Telangana this year.
Due to Telangana’s strong growth as a market, where the business recorded disbursements of more than 430 crore in FY23, the company launched its sixth branch there on Friday. On the strength of infrastructure development, it plans to grant 500 crore in Telangana in 2023.
Increase in price
In April of this year, Lakshminarayanan D, Managing Director of Sundaram Home Finance, told the business line that Hyderabad real estate prices have defied all expectations and increased year after year, spurred by the growth in land parcels.
He blamed the sharp rise in pricing on Hyderabad’s major investment in its road infrastructure, which connects the city to its periphery and its periphery to the national highway.
According to ProperTiger.com, prices in Hyderabad increased by 5% between April and June 2023 compared to the same time last year, averaging $6,400 to $6,600 per square foot.
When compared to the same pre-pandemic period of 2019, the demand for houses valued at least one crore in Hyderabad, Chennai, and Bengaluru increased by 51% in the first half of 2023. According to the report, Hyderabad led the way with a growth of 94%, followed by Bengaluru with a growth of 13%, and Chennai with a growth of 28%.
Plan for growth
In addition to increasing its presence in Telangana, Sundaram Home wants to do the same in Karnataka.
According to him, the company, a wholly-owned subsidiary of Sundaram Finance Ltd, intends to grow into four additional places using the Hub-and-Spoke concept in addition to opening four new branches in Karnataka.
When the four hub-and-spoke locations reach a particular level, according to Lakshminarayanan, they will become full-fledged branches.
The business anticipates that plot development, a preference for plot ownership, and self-construction would be the growth drivers in Karnataka, particularly in the smaller communities.
In the near future, he continued, “We are looking to increase our presence in rural areas like Mudhol and Chikodi and Bengaluru’s outskirts.”
When compared to the same time last year, prices in Bengaluru increased by 9%, averaging $6,300 to $6,500 per square foot for the months of April and June 2023.
In FY23, the company reported disbursements of approximately 525 crore, and it aims to complete the current fiscal with disbursements in the State of close to 600 crore.
