"However, if the developer has projects that are strategically located and well priced, they may not face difficulties in finding takers," he said.

Announced in 2006, the Rs 2,500-crore Chennai IT-SEZ project is being developed through a joint venture with US-based Sun Apollo. A company called Shriram Properties and Infrastructure Ltd was set up for the project. With a built-up area of 5.3 million sq ft, the project will also house a five-star hotel, a mall and serviced apartments.

Murali said that 8 lakh sq ft has been developed in the first phase and given to companies such as Accenture, Satyam and Take Solutions. The second phase, under which 10 lakh sq ft will be developed, will be completed by March 2009. The integrated township project in Uttarpara, Kolkata was announced in September last year with a total cost of Rs 5,000 crore.

Shriram Properties had partnered with funds sponsored by US-based firms Walton Street Capital and Starwood Capital Group for the project. This development will comprise 20 million sq ft of residential, retail and office spaces and civic infrastructure.