Bengaluru based avant garde real estate developer Brigade Group is targeting to launch residential project whose price range starts from 10,000 rupees /sqft. They have launched this project even as the after introducing its premium-luxury mixed-use project on Chennai's iconic Mount Road, Brigade Icon. When completed, the 38-storey structure is easily expected to be among the taller buildings in Chennai.
In a media interaction, Managing Director at Brigade Enterprises, Pavitra Shankar said, "We are looking at a price of somewhere above Rs.20,000 per square foot for Brigade Icon, and that's just a conservative estimate. We will be launching 200 apartments including penthouses at the project, and expect to have a Gross Development Value of Rs.1,800 crore.”
Brigade garnered significant attention in the beginning of 2022 when it acquired a 5.5-acre land reserve on Chennai's renowned Mount Road from the TVS Group, for an estimated ₹550 crore. Speculations about a comprehensive mixed-use project taking shape on this property started circulating as soon as the land purchase was finalized. The unveiling of Brigade Icon has now substantiated these speculations.
After completion of this project Chennai will become Brigade's second-largest market in India — the developer has presence in the South with its residential, office, hospitality and retail projects in Bengaluru, Hyderabad and Chennai.
Brigade has recently announced an investment of Rs.8,000 crore to build 15 million square feet of real estate in Chennai by 2030. The Gross Development Value from the company's overall residential portfolio in Chennai is approximately Rs.13,000 crore.
The company is expecting that, its overall residential portfolio to go north of Rs.9,000/sqft in average weighted price this fiscal. A large part of this profit is owing to different launches of Brigade Icon, with premium price tags. The management also expects to sustain its present-day revenue growth.
Pavitra added, "We have been growing our revenue between 18 and 20% year-on-year, we are aiming for a 15 to 20% growth rate in the residential business, this fiscal."
The realty giant has earmarked Rs.1,000 to Rs.1,500 crore towards land acquisition this fiscal. Pavitra told the media that the company is looking at a combination of joint developments and outright purchase of land banks, with specific focus on the Hyderabad and Chennai markets.
In connection with this she mentioned, "We want Hyderabad and Chennai to account for a larger part of our portfolio," she said, "Bengaluru presently contributes 90%to our residential sales — but we expect that share to come down to about 65% in the next five years, with Chennai and Hyderabad making up for the rest."
After the announcement of Amravati as the full time capital of Andhra Pradesh, Government has evoked interest in the real estate market. Pavitra said that, the company believes in wait and watch approach before planning any developments. She added that, in future they will plan to mark their presence in Andhra Pradesh, if the wave of development move towards it.
She said, "The potential to grow is an important factor we look at before deciding to get into a new market. So, we will continue to keep an eye on Amaravati before we take a decision on whether to invest there — we want some comfort and certainty before we place a bet on the new capital city."
Copyright © 2024 HomesIndiaMagazine. All Rights Reserved.
