Betting on the boom in residential properties, Brigade Enterprises plans to invest Rs 1,200-1,500 crore annually to acquire land.

Brigade has around 16 million sq ft of projects in the pipeline, with approximately 12.5 million sq ft dedicated to the residential sector in Bengaluru, Chennai, Hyderabad, and Mysore, according to Pavitra Shankar, managing director at Brigade Enterprises. The gross development value for new launches, scheduled for FY25, is projected to be nearly Rs 13,000 crore, Shankar added.

Housing sales in the top seven cities increased by 14%, reaching 1,30,170 units during the March quarter this year, compared to 1,13,775 units in the same period last year, according to Anarock Property Consultants. The March quarter sales were the highest in the past decade, driven by a significant rise in demand for high-end homes priced at Rs 1.5 crore and above, the firm reported.

“We have seen very strong momentum in terms of demand in the real estate sector, despite rising input costs, loan costs, and other factors,” Shankar said. She emphasized the company’s goal to maintain a growth rate of around 15 to 20% year on year, noting that prices could increase depending on the project type, micro-markets, and other macroeconomic factors.

In addition to its residential projects, Brigade is planning to expand its hospitality and commercial portfolios. The company aims to add 1,000 hotel rooms across Bengaluru, Chennai, Hyderabad, and Mysore, with hotel construction set to begin in the next two years and an investment of nearly Rs 850 crore, Shankar mentioned. The hotels will be operated by either Accor, IHG, or Marriott International, Shankar stated. Brigade currently has around 1,474 operational keys.

The company also plans to launch two million sq ft of office space within the next four quarters, Shankar said. “Our lease portfolio, which includes office and retail, generated revenues of around Rs 940 crore in the previous fiscal. We anticipate an increase of approximately 10% in FY25, with rentals stabilizing at around Rs 1,050 crore,” she stated.

Brigade’s commitment to investing in land acquisition and development reflects its confidence in the long-term growth potential of the Indian real estate market. The company’s strategy is to capitalize on the increasing demand for quality residential and commercial spaces, which is driven by factors such as urbanization, economic growth, and rising disposable incomes.

The residential sector, in particular, is witnessing robust demand, with a notable shift towards high-end homes. This trend is expected to continue, supported by favorable government policies, improved infrastructure, and increased affordability. Brigade’s focus on developing large-scale residential projects in key cities aligns with this trend and positions the company to benefit from the ongoing market dynamics.

In addition to residential projects, Brigade’s expansion into the hospitality sector is a strategic move to diversify its portfolio and tap into the growing demand for quality hotel accommodations. The planned addition of 1,000 hotel rooms across major cities is expected to strengthen Brigade’s presence in the hospitality market and contribute to its revenue growth.

Moreover, the launch of two million sq ft of office space in the next four quarters underscores Brigade’s commitment to catering to the demand for premium office spaces. The company’s lease portfolio, which includes office and retail spaces, has shown strong performance, with revenues reaching around Rs 940 crore in the previous fiscal. The expected increase in revenues to approximately Rs 1,050 crore in FY25 reflects the company’s positive outlook on the commercial real estate market.

Overall, Brigade Enterprises’ strategic investments in residential, hospitality, and commercial properties demonstrate its proactive approach to leveraging market opportunities and driving sustained growth. By focusing on key growth areas and adapting to evolving market trends, the company aims to enhance its market position and deliver long-term value to its stakeholders.