The Eastern market has become a major growth frontier in India: P Rajendran, SPRE

Shapoorji Pallonji Real Estate (SPRE) is one of the pioneering names in the real estate sector in India. SPRE constitutes a considerable part of the Shapoorji Pallonji Group, which has a legacy of around 159 years, having been established in 1865, offering end-to-end solutions in Infrastructure, Energy and Financial Services, Construction & Engineering, Water, Real Estate, and others. SPRE has a strong presence in Eastern India, more specifically in Howrah and Kolkata, handing more than 13,000 apartments till this date at Shukhobrishti, their mass housing project in Kolkata. It has now announced the launch of Parkside at Joyville Western Heights.

The Shapoorji Pallonji Group is now present in more than 70 countries across the US, Europe, and Australia, with a focus on Africa and the Middle East. It has a workforce of around 70,000 people, delivering ingenious technological solutions in renewable energy, water management, power, oil & gas, focusing on sustainable development and good governance for building a better planet.

SPRE is looking forward to innovating and adapting to the evolving real estate market, aiming to create architectural icons elevating and complementing the reputation of their brand. Other than Kolkata, it has a presence in Gurugram, Mumbai, Pune, and Bengaluru, developing luxury apartments as well as aspirational homes. It invests in and utilizes sustainable and environmentally friendly building materials.

In conversation with Adgully, P Rajendran, CSMO, Shapoorji Pallonji Real Estate (SPRE), delves into the current market trends, challenges, and opportunities in the real estate industry in the East market and the evolution of consumer behaviour.

P Rajendran observes, “The Eastern Market, which is known for its rich culture, has become a major growth frontier in India. West Bengal, the sixth largest state as per its economic size, has seen growth in demand, with its GSDP increasing by 8.41% Y-o-Y basis CBRE Report. The state is providing impetus to infrastructure growth and a favorable business environment, which is helping it to attract business, thereby investing in an unprecedented manner. The market is seeing growing demand for residential, commercial, and retail spaces, which is largely driven by rapid urbanization, disposable income, and preferences for cutting-edge technologies and amenities. As a result of this, markets like Kolkata, Howrah, Bhubaneswar, and Patna have seen significant real estate demand. Initiatives by the government, such as the expansion of metro lines, smart city projects, and improved connectivity to arterial roads, railways, business centers, etc., have played a crucial role in driving real estate growth in these areas.”

“SPRE has observed a steady increase in demand for affordable housing and mid-segment projects, particularly in markets like Kolkata and Howrah. This trend is predicted to continue, aided by stabilizing interest rates and probable rate reductions in future quarters, which would most likely maintain solid demand. While there are challenges such as regulatory hurdles and economic uncertainty, we are optimistic that with government support for various schemes, rapid infrastructure development, and technological integration, there is a promising opportunity for developers to venture into Tier 2 and Tier 3 markets in West Bengal,” he adds.

Commenting on the marketing/ media mix strategy of SPRE as well as its market share, and ad spends in the East market, Rajendran says, “At SPRE, we believe in a 360-degree integrated marketing approach. That helps us to broaden our reach of the target audience, leading to positive outcomes. For wider reach and measurable impact, we do digital marketing, which includes SEO, content marketing, and online advertising. We also do traditional media like print ads, billboards, and radio. We conduct on-ground events like CP meets, mall activation, society activation, events at sales/ site offices, mobile billboard trucks, etc. We also do PR activities like press releases, interviews, articles, etc. Every element, carefully selected, plays a crucial role in our strategy, especially in brand building and reaching to a broader demographic. We have strategically distributed our ad spends, with approximately 50-60% allocated to digital platforms and 35-40% to traditional media. This balanced approach has proven to be effective in reaching our target customers, ensuring that our marketing efforts are not only efficient but also cost-effective.”

Highlighting what forms the core of the creative communication process at SPRE, he points out, “At the heart of our core creative communication are the themes of trust, quality, and innovation. We emphasize our legacy, showcasing our commitment to building superior living and customer-centric spaces. Whether it is through creative designs, localized marketing strategies, or quick customer service, SPRE is dedicated to not just meeting but exceeding the expectations of our East market customers. Our focus on their needs and preferences is what drives our success and sets us apart in the industry.”

Emphasizing on the focus areas of SPRE in 2024 in the East market and the medium in which it is investing more, he notes, “In 2024, SPRE will continue to launch new towers and retail space at our project. We are also excited to enhance our customer experience by leveraging cutting-edge technologies such as virtual tours, AI-driven chatbots, and personalized recommendation systems in our customer services. Our investment strategy involves allocating resources across both digital and traditional media to ensure comprehensive market coverage. We recognize the growing significance of digital platforms such as social media marketing, online advertising, and virtual property tours in engaging with the East market consumers. However, we also understand the enduring value of traditional channels, which play a crucial role in our strategy. Therefore, our approach entails a balanced investment in both digital and traditional avenues to reach and resonate with our target audience effectively.”

He further says, “We anticipate a heavier investment in digital media of our marketing budget directed towards digital channels, including social media, influencer partnerships, online advertising, and e-commerce platforms. The remaining budget will be invested in traditional media, such as television, radio, print, and outdoor advertising. This balanced strategy ensures we reach a wide audience while leveraging the growing digital consumption in the East market.”

Discussing about how SPRE is leveraging digital media, technology as well as influencer and social media marketing and the marketing/ ad campaigns launched by it in 2024, he says, “To enhance our customer experience and engagement, we have been using digital tools like AI chatbots for instant customer support, AR and VR for virtual tours of our project site, show flats, etc. We also ensure a robust CRM system and support that help us personalize our customer interactions. In today’s digital and social media age, engaging with influencers plays a crucial role in our marketing strategies. They help us expand our reach with more engaged customers.”

To reach its target audience, SPRE is also using micro-influencers or local influencers who help promote the new project along with the company’s brand values, which enhances brand visibility. The company’s innovative 3D outdoor marketing campaigns have been a resounding success, significantly broadening our reach to customers. By integrating these advanced strategies, SPRE has effectively enhanced brand visibility and fostered a deeper connection with its audience. “This success is a testament to our commitment to innovation and creativity,” says Rajendran.

Elaborating on the performance of SPRE in 2023 in the East market as well as the growth projections, and expansion plans for 2024, he says, “SPRE has demonstrated a consistent and successful development in Kolkata and Howrah in 2023. We have achieved significant sales milestones and expanded our market share through effective product launches and efficient marketing campaigns. A testament to our success is the delivery of nearly 13,000 homes at our largest mass housing project, Shukhobrishti, a sprawling township spanning 150 acres in Kolkata. In Howrah, we have recently unveiled a new tower, Parkside, at Joyville Western Heights, a 30-acre gated community project. We have already handed over four towers at this project, further solidifying our track record of success.”

On the road ahead, he says, “Looking ahead to 2024, SPRE anticipates the growth momentum to continue in the eastern market. Our pipeline includes the launch of new towers and retail space at our project. We remain steadfast in our commitment to quality, customer satisfaction, and product development, as we strive to meet our customers’ evolving preferences. These strategic initiatives and unwavering commitment to quality will be the driving forces behind our continued growth in the Eastern market.”