Engineering and construction major Larsen & Toubro (L&T ) is looking to develop more than 100 million square feet of high-grade real estate over the next five years, with residential projects comprising 70% and commercial the rest.
The company plans to launch projects in six key metro cities, including Mumbai (MMR), Bengaluru, Chennai and Delhi-NCR, it said. It is looking to invest around Rs 4,400 crore as part of Lakshya FY26 -FY31 — its strategic roadmap for growth. L&T is eyeing a potential pre-sales compounded annual growth rate (CAGR) of 25% over FY26-31.
According to analysts, the company has done pre-sales (bookings ) of Rs 9,400 crore in FY26.
Consolidation and Scale
In residential real estate, L&T aims to do land acquisitions and joint developments, while also selectively scaling up its commercial portfolio, the company said in its Q4FY26 presentation.
“They have great brand name and strong execution capabilities. Though the markets are down now, they can capture the growing demand in big cities,” said a consultant who did not wish to be named.
During the last financial year, L&T Realty Properties and another L&T arm, L&T Realty Developers, completed cumulative land acquisitions across Mumbai, Delhi and Bengaluru with an aggregate potential of 3 million square feet, enhancing medium-term development prospects.
Late last year, L&T approved the transfer of its realty business undertaking to L&T Realty through a slump sale. The move marked the beginning of a phased consolidation of all real estate assets and undertakings and vesting them in L&T Realty, creating a unified, future-ready entity capable of capitalising on real estate growth in the country.
Competitive Landscape
L&T’s plans come at a time when listed peers such as Godrej Properties and Lodha are also aggressively expanding their operations despite sluggishness in the property market.
Godrej Properties has more than doubled its business development in FY26 at Rs 42,100 crore against its target of Rs 20,000 crore. This year too, it has set a target of Rs 20,000 crore. It is also looking to launch projects worth Rs 48,000 crore in FY27.
Lodha added 12 projects with Rs 60,100-crore gross development value in FY26, equivalent to 75% of the total business development done during FY22-25. According to analysts, a launch pipeline of ~15million sq ft, Rs 51,400-crore unsold inventory and future pipeline of 72 million sq ft beyond FY27 can keep the growth engine running at Lodha for the medium term, even if business development remains muted in the next two years.
In April this year, L&T said its arm L&T Realty Properties has bought the entire stake in International Green Scapes (IGSL), unlocking 20 acre prime land in Gurugram for real estate development.