Bengaluru based property developer Brigade Enterprises reported a more than threefold jump in its Q3 consolidated net profit to Rs 236.24 crore and its sales bookings rose 63% to Rs 2,492 crore in the December quarter. Pavitra Shankar, managing director, Brigade Enterprises, talks to Raghavendra Kamath about the company’s plans and outlook for the real estate sector.
What are your launch plans for the remainder of FY25 and FY26?
We have a robust pipeline of launches across multiple cities. We are focusing on both premium and mid-segment residential projects in Bengaluru, Chennai, and Hyderabad, among other key markets.
What kind of price increases have you implemented over the last six months?
We are seeing prices increase across our portfolio. We have seen it improve 37-40% year-on-year across both residential and commercial. Going forward, we anticipate pricing to increase annually anywhere around 8-12%, depending on the project and submarket.
What kind of growth are you seeing in office leasing?
The office leasing market remains resilient, with demand coming from both global capability centres (GCCs) and domestic companies. Key sectors that are driving leasing include IT, BFSI, and flex workspaces. Bengaluru, Hyderabad, and Chennai continue to remain key markets due to strong talent pools and infrastructure improvements.
Hybrid work models have stabilised, and companies are actively seeking quality office spaces in well-connected locations. Furthermore, return to office is encouraging spaces to be taken up especially in flex and managed office.
Will Brigade tweak apartment sizes, ticket sizes and so on going forward due to the Budget sops and other factors?
There has been a dramatic increase in pricing over the last two years. Demand for bigger units had also increased post Covid-19. The combination of the two factors has led to an increase in supply of premium housing and upper mid segment housing, which is seeing good demand. Over the next few years, we also see an increased traction in the lower range of the mid-segment due to sensitivity to the exponentially higher overall ticket sizes from both unit size and pricing per square foot.
What kind of impact do you see from the Budget proposals on residential real estate?
The recent Budget proposals are expected to have a positive impact on the residential real estate market. Key measures such as incentives for infrastructure development, enhanced deductions on home loan interest, and tax benefits for residential property investors are likely to boost market sentiment and stimulate demand.
Besides, the focus on urban infrastructure development will enhance the attractiveness of residential markets in key cities, creating new opportunities for growth and development.
Do you expect affordable housing to see a revival with the recent drop in interest rates?
Affordable housing will need focused initiatives like a revival of PMAY and reduced GST on input costs for specifically affordable housing projects. The current cap of Rs 45 lakh was last set in 2019 and needs to be revisited
What is your outlook for residential sales in 2025?
Demand continues to be strong, especially in the mid-to-premium housing categories. With economic stability, favourable interest rates, and continued urbanisation, we expect healthy growth in sales volumes. End-user demand remains strong, and investor interest is gradually returning to the market.