Betting on the boom in residential properties, Brigade Enterprises plans to invest Rs 1,200-1,500 crore annually to buy land.
Brigade has around 16 million sq ft of projects in the pipeline, of which around 12.5 million sq ft is in the residential sector in Bengaluru, Chennai, Hyderabad, and Mysore, Pavitra Shankar, managing director at Brigade Enterprises, said. The gross development value for new launches, slated for FY25, would be nearly Rs 13,000 crore, Shankar said.
Housing sales in top rose 14% to 1,30,170 units during the March quarter this year across the top seven cities, from 113,775 units in the year-ago period, according to Anarock Property Consultants. The March quarter sales were the highest in the last decade amid a significant rise in demand for high-ticket homes priced at Rs 1.5 crore and above, the firm said.
“We have seen very strong momentum in terms of demand in the real estate sector, despite rising input costs, cost of loans, and other factors,” Shankar said, adding that the company aims to maintain a growth rate of around 15 to 20% year on year.
She noted that prices could increase depending on the project type, micro-markets, and other macroeconomic factors.
Brigade is also planning to grow its hospitality and commercial portfolio. It plans to add 1,000 hotel rooms across Bengaluru, Chennai, Hyderabad, and Mysore. Construction of hotels will commence in the next two years, with an investment of nearly Rs 850 crore, she said.
Hotels will be operated by either Accor, IHG, or Marriott International, Shankar stated. The company currently has around 1,474 operational keys. Additionally, Brigade plans to launch two million sq ft of office space in the next four quarters, she said.
“Our lease portfolio, which includes office and retail, clocked revenues of around Rs 940 crore in the previous fiscal. We expect an increase of approximately 10% in FY25, with rentals stabilizing at around Rs 1,050 crore,” Shankar stated.