Brigade Group Invests Rs.2700 crore to Launch 6.5 million sq ft Residential Project

Bangalore based notable real estate giant Brigade Group plans to launch more than 6.5 mn sq ft of residential projects this fiscal, predominantly in Bengaluru and Chennai that are likely to entail an investment of around Rs.2,700 crore.  This news was confirmed by Managing Director of Brigade Enterprises Limited, Pavitra Shankar.

She elucidated, “This financial year we would be launching close to 6.5 mn sq ft primarily in Bengaluru. The company has so far launched 4 mn sq ft in Bengaluru across different submarkets In the coming four quarters, we look to launch projects in Hyderabad and Chennai in addition to Bengaluru.

In this current financial year the company has recorded, a profit of Rs. 56 crore, and they have expanded their empire in Chennai, Hyderabad, Mysuru, Kochi, Gift City-Gujarat, Thiruvananthapuram, Mangaluru and Chikkamagaluru across residential, office, retail and hotels.

Regarding their expanding plan in Delhi-NCR and Mumbai the managing Director Pavitra told that they are focusing more on South India. She added," As we have invested here in terms of having a presence and creating a network. When we enter a market, we want to be present across segments - office, retail, residential and hospitality. We much rather go deep into a market rather than spread across one-off projects in multiple markets." She also told that, they are evaluating their plans for Mumbai and delihi market but their prime focus is on the South Indian markets.

In December, 2023, the company launched a new housing project, Brigade Sanctuary in Bengaluru, under the joint development model. It will comprise 1,275 units. The company hopes to earn a revenue of around Rs.2,000 crore from the project that is spread across an area of 14 acres in Yelahanka in North Bengaluru. The total development area will be around 2 mn sq ft.

Commenting on real estate market of Bangalore, she said, “With heightened customer expectations for amenities and higher product specifications, prices have gone up. Demand is robust despite the increase in prices. Residential sales form almost 60-70% of our revenues and demand is expected to remain strong in the next couple of years. ”

In Mysuru, the developable area of the project will be about 0.40 million sq ft with a Gross Development Value (GDV) of Rs.300 crore. She further added, “Brigade has been a strong brand in Mysuru over the last three decades. This is our 27th project in Mysuru. The project is currently in the design stage and may take about 10-12 months to launch.”

The company is expected to launch close to 5 mn sq ft in the next four quarters. "Two projects are part of existing townships in the Whitefield IT belt. This may be launched in the next financial year. The capex will be close to Rs.2,300 crore.

The company's operational rental commercial space portfolio is close to 8.5 mn sq ft and does about Rs.750 crore annually. In December 2023, the government had issued a notification allowing floor-wise denotification of Special Economic Zone spaces into non-SEZ use within information technology and IT-enabled services parks. It provides an opportunity for the companies yet to be leased SEZ spaces and it will provide landlords an opportunity to denotify the SEZ space and lease it to a non-SEZ tenant.