Brigade to launch 10 housing projects in FY24; to invest Rs 3,000 crore on construction: MD

Real estate

Realty firm Brigade Enterprises will launch 10 housing projects this fiscal across Bengaluru and Chennai with an estimated construction cost of Rs 3,000 crore as it looks to encash rising demand for residential properties, its MD Pavitra Shankar said.

In an interview with PTI, she sounded extremely bullish on India’s residential market and said the company would like to grow housing sales by 15-20 per cent during the current 2023-24 fiscal.

“Overall, the last financial year was very good, primarily driven by our residential and hospitality business. Things in retail were also very good and office was quite stable,” Pavitra said.

Bengaluru-based Brigade Enterprises achieved a record sales bookings of Rs 4,109 crore, mostly housing with small portion of commercial properties, a 36 per cent growth from the 2021-22 financial year.

In terms of area also, sales bookings grew by 34 per cent to a record 6.3 million square feet.

“I think it’s reflective of general demand by customers,” she said, adding that the impact of hike in mortgage rates was not visible at ground level.

Asked about plans for this fiscal year, Pavitra said the company has lined up 7.54 million square feet area of launch in residential segment across 10 new project/new phases in existing projects.

On construction cost and sales value of these new launches, she said the estimated gross sales value is around Rs 6,000 crore.

The construction cost to develop these 7.54 million square feet will be about Rs 3,000 crore over the next 4-5 years, said Pavitra.

Brigade Enterprises launched 5.4 million square feet area in residential segments last fiscal, she said.

On leasing vertical, Pavitra said the company witnessed an increase of 26 per cent in revenues to Rs 752 crore last fiscal from Rs 596 crore in the preceding year. The leasing revenue comprises of revenue from commercial assets and facility management business.

Office leasing grew 33 per cent from 0.9 million square feet in FY22 to 1.2 million square feet in FY23.

In retail malls, she said the footfalls increased by 106 per cent in the last fiscal and the company witnessed a 78 per cent annual growth in retail sales consumption during FY23.

Brigade’s hospitality portfolio occupancy reached 69 per cent as against 62 per cent of pre-COVID occupancy.

The company reported a consolidated net profit of Rs 222.17 crore in the last fiscal as against a net loss of Rs 64.76 crore in the 2021-22 financial year.

Total income rose to Rs 3,563.21 crore in the 2022-23 fiscal from Rs 3,065.51 crore in the previous year.