Brigade Enterprises is ramping up its investment in residential projects, planning to spend INR 1,200-1,500 crore annually on land acquisitions. The company has around 16 million square feet of planned development, with 12.5 million square feet dedicated to residential projects in major cities. This move follows a 14% rise in housing sales in early 2024, driven by demand for luxury apartments. Brigade also plans to expand its hospitality and commercial portfolios, including 1,000 new hotel rooms and 2 million square feet of office space. This diversified approach aims to capitalize on the booming real estate market in India.
Brigade Enterprises, a property developer, is significantly increasing its investment in residential projects across India. The company plans to invest INR 1,200-1,500 crore annually to acquire land for new developments. This move comes amidst a strong resurgence in the residential real estate market, particularly for high-end properties.
According to Brigade's Managing Director, Pavitra Shankar, the company has a substantial pipeline of projects, with around 16 million square feet of planned development. Notably, 12.5 million square feet of this space is dedicated to residential projects in major cities like Bengaluru, Chennai, Hyderabad, and Mysore. This focus on residential reflects the current market trends. Housing sales in major Indian cities rose by 14% in the first quarter of 2024, with a significant increase in demand for luxury apartments priced above INR 1.5 crore.
Shankar noted the very positive momentum in real estate demand despite rising input costs and loan interest rates. Brigade is confident in this growth and aims to maintain a yearly growth rate of 15-20%. While acknowledging potential price adjustments based on project type and location, Shankar remains optimistic about the market outlook.
Brigade's expansion plans extend beyond residential projects. The company aims to strengthen its hospitality and commercial portfolio as well. This includes adding 1,000 hotel rooms across their key markets, with construction starting in the next two years and an investment of nearly INR 850 crore. These hotels will be operated by renowned international chains like Accor, IHG, or Marriott, adding to Brigade's existing portfolio of over 1,400 operational rooms.
Furthermore, Brigade plans to launch an additional 2 million square feet of office space within the next four quarters. Their existing commercial lease portfolio, encompassing both office and retail spaces, generated a revenue of INR 940 crore in the previous fiscal year. They anticipate a 10% increase in this revenue for FY25, with rental income stabilizing around INR 1,050 crore.
Brigade's multi-pronged approach positions them to capitalize on the current boom in residential real estate while also strategically expanding their presence in the hospitality and commercial sectors. This diversified strategy positions them for long-term growth in the Indian real estate market.
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