Category: Real Estate

China home prices fall at faster pace despite revival efforts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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China’s home prices fell at a faster pace in April, underscoring why the government is stepping up efforts to tackle the years-long property crisis.

New-home prices in 70 cities, excluding state-subsidized housing, slid 0.58% from March, National Bureau of Statistics figures showed Friday. Values of existing homes dropped 0.94%. Both were the steepest declines in a decade.

Policymakers are accelerating efforts to revive demand for homes and address a glut in supply. Worries over residential values, unfinished apartments and job security are deterring buyers, prolonging a property slowdown that is dragging on the world’s second-largest economy.

“Prices are expected to drop over the next few quarters as more homeowners list existing properties to take advantage of new policies such as lower mortgage rates and downpayments,” Jeff Zhang, an analyst at Morningstar Inc. in Hong Kong, said before the figures were released.

Also Read: China mulls government purchases of unsold homes to ease glut

From a year earlier, new-home prices fell 3.51% in April, steeper than March’s 2.7% drop, the statistics bureau said. Existing-home prices dropped 6.79%. Both were record declines since the bureau began the current method of collecting data in 2011.

On the supply side, the government is considering a proposal to have local authorities buy millions of unsold homes, in what would be one of the most ambitious attempts yet to salvage the market, Bloomberg reported this week.

Senior government and bank officials are expected to meet to discuss the plan on Friday morning, according to people with knowledge of the matter. The central bank and key ministries are scheduled to brief at 4 p.m.

To spur demand, cities from Beijing to Shenzhen have been relaxing home-buying rules since late April. Some, like Hangzhou, have even scrapped restrictions altogether.

Also Read: China averts moral hazard, for now, after Country Garden pays

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IHCL launches world’s first Taj-branded residences in Chennai, project completion by 2027

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian Hotels Company Ltd has announced the first-ever homes to be sold under the Taj branding anywhere in the world. Taj Sky View Hotel & Residences, presently under construction in Chennai, will see IHCL join hands with city-based real estate developer, Ampa Group, to to launch 253 hotel rooms and 123 branded apartments. The project is expected to be completed early 2027, between January and March.

“We believe IHCL can have a strong presence in the business of business residences, and that we have the ability to come up with a sustainable, profitable and growth-oriented model to serve all customer points,” said Puneet Chhatwal, MD and CEO, at IHCL, in a conversation with CNBC-TV18.

According to the partnership between Ampa Group and IHCL, the developer will fund the project while IHCL will run operations of the entire property for a period of 30 years, including maintenance of the 123 homes on site. The project’s construction cost is estimated to be ₹800 crore, of which Ampa has already invested ₹200 crore.

“Ampa’s land bank is a family heirloom, and I believe the project will be a win-win for IHCL and us,” said Ampa Palaniappan, Chairman and MD of the Ampa Group, “The sale of residences will fund the operations of the hotel in what will become a cash-flow-neutral project.” He added, “The idea is to have a debt-free hotel, which is apt for a debt-free company like IHCL.”

According to the Ampa Group, homes at Taj Sky View will begin at ₹6.5 crore for a unit size of approximately 2,500 square feet. The largest unit will lie in the 5,900-sq-ft range, and could cost upwards of ₹19 crore. “We expect the hotel to be completed and operational first, after which the residences will be completed,” Palaniappan said.

While IHCL has not confirmed other branded residential developments in the pipeline, Chhatwal hinted at more such projects seeing the light of day as Taj Sky View inches towards completion. “We are not in a hurry to sign more branded residences in other cities,” said Chhatwal, “We will ink other agreements and finalize more projects as this one comes up.”

‘Massive opportunities in spiritual tourism’

IHCL’s management has recently been bullish on opportunities in the spiritual tourism segment, especially in markets like Ayodhya and Varanasi. Chhatwal said that a more Taj properties in South Indian spiritual towns may also be in the offing.

“We are looking at Rameswaram, where we don’t have a property yet, and are also looking to expand our presence in Madurai,” he said, “We recently opened our second property in Tirupati and will make a foray in Guruvayur.” The IHCL CEO added that the strategy was simple: invest in newer markets while doubling down on investments in existing ones.

“Spirituality in business as well as personal life is a massive opportunity to be tapped,” said Chhatwal, “The investment that has gone into Ayodhya and the Kashi Vishwanath Temple in Varanasi, will attract more visitors.”

Given the launch pipeline of inventories in tier-2 and tier-3 cities, IHCL believes RevPAR in properties located within holy cities could see a double-digit growth rate. “RevPar in spiritual cities is consistently on the way up with certain exceptions because of a heat wave or geo-politcal situations,” said Chhatwal, “But I remain optimistic — not cautiously optimistic — that RevPar in these cities will continue its upward trajectory.”

He added: “I expect double-digit growth in overall RevPAR for some time before high single-digits on account of inflation.” The IHCL boss also said that average daily rents (ADR) or hotel room prices could see a spike in metro cities since inventory was more skewed in favour of tier-2 towns, which would then allow hoteliers to spike prices at city properties.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Why this market expert is bullish on residential real estate companies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Real estate stocks have made a strong comeback over the past year after nearly a decade of falling out of favour.

The Nifty Realty Index has more than doubled over the past year and gained over 22% since January this year compared with Nifty50 gains of over 2%.

Pratik Gupta, CEO and Co-Head at Kotak Institutional Equities says the rally, particularly for the residential players that he prefers, has been aided by a bunch of factors apart from the strong demand revival.

“We are seeing very strong volume uptick. It’s not being driven by pricing alone. And in the last down cycle, a lot of these companies deleveraged quite a lot. Governance levels have also improved dramatically. To that extent, we like the residential real estate plays, we think there will be continued surprises in terms of the volumes,” he said.

The demand-supply dynamics favour the companies, with supply shortfalls expected to spread from metro cities to smaller cities and towns.

Gupta’s observations echo those of Anuj Puri from Anarock Research, who told CNBC-TV18 that home inventory is currently near seven-year lows.   

Another factor that makes this a more sustainable rally is that real estate players are being more disciplined in terms of pricing unlike a few years ago.

The Interest rate outlook also looks reasonably stable and there may even been a rate cut in the later part of the year, which will aid demand, he noted.

He expects government policies also to become increasingly supportive of the sector.

Residential upcycles tend to last many years and we are still in the early stages, he added.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

DLF targets ₹17000-18,000 crore in sales for FY25: Joint MD Aakash Ohri

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Real estate developer DLF is eyeing sales worth ₹17,000-₹18,000 crore during April-March 2024-25.  

Aakash Ohri, Joint MD and Chief Business Officer at DLF Home Developers spoke exclusively with CNBC-TV18 about the latest luxury project–Privana West in Gurugram–which got sold out in just three days, and the upcoming launches.

This is the verbatim transcript.

Q. Was Privana supposed to be launched in FY24 but has been pushed to FY25 because that’s what the sales look like right now? What will FY25 bookings look like, given this case of Privana getting pushed to FY25?

A: Privana didn’t get pushed by design, there were some regulatory delays in terms of approvals that got pushed out. But you’ve seen we’ve done well, we’ve sold out Privana West as well. The FY25 guidelines will be about ₹17,000 – ₹18,000cr that we will do in sales. As far as Privana is concerned, we’ve done well, it’s an overwhelming response again to a DLF product and I think we’re extremely grateful for that.

Q. And when we consider FY24 bookings that were at around ₹14,778 crore vs ₹15,058 crore, how would you expect it to add?

A. See, most of the sales happen post RERA approvals. And you plan for these launches based on the approvals. But there are times when these things don’t happen as per plan. But in no way should you consider or even doubt the capabilities of the sales engine or the demand today of a DLF product. And as you see in Q1, we proved it again, there has been a robust sale to Privana West.

Q. You have also spoken about Privana being sold completely. What is the booking value there and will all of the sales be seen in the first quarter itself? Also, how much of the 11.6 million square feet launch is there in the FY25 which is going to come from Privana?

A. Privana, the total launch size has been about ₹5,590 crore and all of it you will see in Q1. It’s almost about a 2.68 msqft size. All the other launches as we go along, there is Goa, Mumbai, a super luxury project in DLF5, some independent floors, and some product in Tri-City. So, we’ve got a good launch pipeline for FY25.

Q. We have also seen the launch area has increased from 10 million square feet in FY24 to 11.6 million square feet in FY25. But at the same time, the launch in FY24 has reduced from 25 million square feet to 24. So, are some of these launches better installed over for the this fiscal? 

A. There will be some changes based on demand, some based on approvals and once they are all in, we get ready with the product launch. So there will be that little bit of a variation that you should always look at. But otherwise, most of it will be as per plan.

Q. When we consider the sector 61 as an added project with an opportunity sale of about ₹20,000 crore, by when does this get on the line and what is the capex involved in this?

A. You saw the success of Arbor. I wouldn’t say it’s the same geography, but it is almost there. So this product is in the golf course extension as you exit the golf course road. We are reasonably excited about the product. It will be a luxury product. I feel there will be a good traction and demand for this, not only here, but I think pan India and of course from the NRI markets as well. So as far as this particular product is concerned, if all goes well, we will bring it in later part of the year, or most probably it will be in FY26.

Q. Talking about the NRIs and the interest that we are seeing, you’ve got great numbers from both the Privanas. What is the NRI contribution to the total sales? Last time you mentioned that it was 28%. Has there been an increase in this time?

A. Well, last time it was about 22-23%. It’s increased to about 27%. What is heartening is that the NRIs are now backing the Indian good real estate developments in a big way. There was a time when most of these investments had dried up, but it’s good to see them come back. Most of the NRIs that we are talking about are investing for the future. Should they return in four to five years, they make these investments. That’s a market we will continue to develop and explore.

Q. There has been a substantial price increase between Privana South and Privana West. Is the pricing attributed to the dollar exchange rate, the NRIs, and are you converting that in INR for Indian markets?

A. No, the price is the same for everybody, whether it’s an NRI sale or a domestic sale. The price has gone up by about ₹1,500 a square foot for the Privana West. There’s also a lot of infra work going on on-ground. Privana West and South are part of a very infrastructurally superior land bank. You are connected with good infrastructure. It’s the Dwarka Expressway or the Mumbai Expressway or Jaipur. You are very close to almost 10,000 hectares of a green lung. As far as the Privana geography is concerned, it’s a place that people would love to live in. And it is a DLF product, so you can say it’s a given. It will be one of the most superior and luxurious products after The Crest. It is the same genre. So Privana, as far as the geography, approachability, lifestyle, the DLF lifestyle, it’s a very cohorted mix of everything.

Q. Of the bookings, what percentage of buyers have opted for housing loans? As you said, these are luxury segment houses and a lot of NRIs are also looking at this as an investment so that once they come back, can we get some details on that?

A. The booking amount is ₹50 lakh, which generally come in from the customer themselves. But the banks have been very active and very supportive. So, to start with, there will be about at least 30%, if not more. But those numbers, I’d be able to give you more accurately in three months from now because at this point in time, mostly internal accruals are where the moneys are coming from. But the banks are there. Most of the big banks are doing good business. And I think this particular trend will continue.

Q. When we talk of NCR market, what sort of an expansion plan do you have? You have not entered Noida market for some time, and that’s a conscious call that DLF has been taking. Any reason for that, and can we see some future expansion in NCR, especially Noida?

A. Never say never. Whenever and wherever we get a good opportunity, we will definitely be there. But we have always concentrated on margins. We are not in this rat race of just developing projects or for the sake of them. But what is important to understand is that unless it makes good business sense for DLF and what we can create for our customers, we will not just get into a product or a project. Having said that, if we get a good opportunity in Noida, we will be there.

Right now, in NCR, we’ve got Delhi, with One Midtown with great potential. We’ve got Gurgaon, which is our hub, both from the super luxury bucket as well as the luxury bucket. We’ve got independent floors waiting to be launched here. So, we’ve got our hands full for the next three years at least.

Q. Which projects are you going to launch during the year that will clock sales of ₹36,000 crore? That’s the target for the coming fiscal year.

A. No, ₹36,000 crore is the total realisation potential of the development. The launch guidelines as far as the sales guidelines will hover around the ₹ 17,000-₹18,000 crore mark.

Q. How soon is the Mumbai launch happening? Where are we on that project and when can we see openings happening?

A. Mumbai will be sometime in third or fourth quarter this year. We’ve already set the ground for it. Work, both from the project side as well as the revenue side has begun. We’ve started to put our people in place. So yes, please look forward to Mumbai in third or fourth quarter this year.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Macrotech Developers to invest ₹3,500-4,000 crore this fiscal to acquire land parcels

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Realty firm Macrotech Developers Ltd will invest ₹3,500-4,000 crore this fiscal to acquire new land parcels, outright and through joint development agreements with landlords, to build housing projects as part of its expansion plan to encash a surge in demand for residential properties.

Macrotech Developers, which markets its properties under the Lodha brand, is one of the leading developers in the country.

It has a major presence in the Mumbai Metropolitan Region (MMR) and Pune, while the company has just entered the Bengaluru market.

According to a transcript of earning calls with analysts, Macrotech Developers Managing Director and Chief Executive Officer Abhishek Lodha said the company will invest ₹3,500-4,000 crore on new business development, which means acquiring land parcels for future development.

The total spend on “new business development” will be about ” ₹35 to 40 billion”, he said, adding that there would be some outflow for land acquired in previous years.

In the case of joint development agreements (JDAs) with landlords, real estate developers pay some advance amount to landowners. Builders share revenue or area with the landlords.

“Our target mix is 60% owned land and 40% from JDAs. You know that we own a very large amount of owned land. Therefore to maintain this 60:40 mix is likely that the incremental GDV (gross development value) addition will be perhaps 50% from JDAs and 50% from owned land,” Lodha said.

During the last fiscal year, Macrotech Developers added many new land parcels to build housing projects with a potential sales value of over ₹20,000 crore.

“In terms of our business development, we added about ₹20,000 crore of GDV through new projects, which was higher than our guidance of ₹17,500 crore. Both on JDAs as well as on outright, we continue to see a steady and strong pipeline of new projects coming in,” Lodha said.

Mumbai-headquartered Macroteh Developers registered a 20% growth in its sale bookings (pre-sales) to a record ₹14,520 crore last fiscal from ₹12,060 crore in the 2022–23 financial year.

It has given guidance of achieving 21% annual growth in sales bookings this fiscal to ₹17,500 crore.

Recently, Lodha told PTI that the company was not in a “rat race” to become the top builder in terms of sale bookings and it would rather focus on achieving consistent and predictable growth with high profit margins.

To achieve the sale bookings target, Macrotech Developers will launch 17 housing projects this fiscal, comprising 10 million square feet of saleable area and a revenue potential of ₹12,000 crore.

The company will launch 10 new projects and seven new phases in existing residential projects during the 2024–25 fiscal year across the three cities. However, the company said the guidance for the launch pipeline of this fiscal might shoot up as it might acquire more land parcels and be able to launch housing projects on those sites in this financial year itself.

Even during FY24, Macrotech Developers cited that the company launched projects worth ₹18,000 crore as against the guidance of ₹13,000 crore.

Macrotech Developers is bullish on the overall demand scenario in the housing segment.

To encash this, the company will step up its investment this fiscal year in the construction of projects to over Rs 5,000 crore.

Lodha said the company is targeting to deliver more than 10,000 apartments during 2024–25, as against around 8,200 units in the last fiscal.

Recently, Macrotech Developers reported an 11% decline in its consolidated net profit to ₹665.5 crore in the March quarter from ₹744.4 crore in the year-ago period.

The company’s total income grew to ₹4,083.9 crore in the quarter under review from ₹3,271.7 crore a year ago.

During the 2023–24 fiscal, Macrotech Developers registered a three-fold jump in profit to ₹1,549.1 crore as against ₹486.7 crore in the 2022–23 fiscal.

The company’s total income rose to ₹10,469.5 crore last fiscal over ₹9,611.2 crore in the 2022–23 fiscal.

Macrotech Developers has delivered around 100 million square feet of real estate and is currently developing more than 110 million square feet under its ongoing and planned portfolio.

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Home inventory hits near seven-year low: Anarock’s Anuj Puri

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With housing sales far exceeding new launches, overall home inventory has plummeted to near seven-year lows, says Anuj Puri, Chairman of Anarock Property Consultants.

The inventory is particularly low in the National Capital Region (NCR), where sales of luxury homes have ballooned.

In its latest report, Anarock highlights a shift in demand from the affordable housing segment to luxury homes (houses costing over ₹1.5 crore).

The trend reversal is despite luxury home prices across the country rising nearly 20%, much higher than in the affordable segment, over the last two and a half years.

The share of luxury homes in overall sales has grown nearly three times to 20% since 2019 in top seven cities. Affordable housing, on the other hand, has lost steam with sales dropping to 20% from 37% in the same period.

Source: ANAROCK Research

Luxury housing has also seen a spike in new launches since the pre-Covid period.

In 2019 (pre-Covid), about 25,770 luxury homes were launched for the entire year. In contrast, the first quarter of 2024 (January-March) alone saw the launch of 28,020 luxury homes.

Source: ANAROCK Research

Affordable housing has seen share of new launches shrink to 18% in January-March from 40% in 2019 in the top 7 cities.

Source: ANAROCK Research

“Before Covid, the overall sales value for India in the top seven cities was at ₹165,000 crore. Five years later in FY24, that sales is ₹525,000 crore. So, overall market has really zoomed up. Within that luxury has accelerated faster than the affordable housing,” Puri said.

One reason for the rise in luxury over affordable could be people wanting bigger apartments leading to higher ticket sizes, he noted.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Real estate stocks vs REITs: Key differences and where to invest

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Real Estate Investment Trusts (REITs) provide more advantages than investing directly in listed real estate company stocks, says Ramesh Nair, CEO of Mindspace Business Parks REIT.

Nair lists these as the key benefits of opting for REITs over realty stocks:   

First, REITs are structured as a business trust unlike listed real estate companies.

This means they are subject to specific regulations that focus on providing transparency and protecting investors. They are also structured to be more tax efficient.

Also Read: Why Keki Mistry thinks REITs are a good investment option

While real estate companies might engage in a variety of activities within the real estate sector (like development, management, and sales), REITs often specialise in owning and operating income-generating real estate.

Second, REITs need to ensure that their loan-to-value ratio (LTV), which indicates how much of the property is financed through debt, does not exceed 49%.

They are also required to furnish additional disclosures and meet specific credit rating requirements once the LTV crosses 25%.

The LTV cap of 49% helps in mitigating risk by preventing excessive debt and ensures that REITs maintain a conservative debt profile, which is crucial in real estate investments prone to market fluctuations.

Third, REITs have to distribute 90% of their net distributable cash flows (NDCF) to the unitholders.

Also Read: SEBI’s latest guidelines on REITs and InvITs

NDCF is the cash generated from a REIT’s operations that is available for distribution to its shareholders after covering all operational expenses and capital improvements.

Fourth, REITs have to ensure that 80% of the assets they invest in should either be complete or income generating.

This contrasts with real estate stocks, where companies might invest heavily in developments which may later face hurdles.

While direct investments in realty stocks often expose investors to higher risks from market volatility and leverage,  REITs can provide more predictable and steady income through dividends, making them a safer and more reliable investment option compared to direct realty stocks.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China averts moral hazard, for now, after Country Garden pays

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A Chinese program to backstop distressed developers’ debt dodged its first potential intervention after Country Garden Holdings Co. paid bond interest, averting the moral hazard that such support may fuel.

The distressed developer paid interest totaling 65.95 million yuan ($9.1 million) on its 3.95% note and 3.8% bond, according to company filings. The coupon payments were made despite Country Garden saying in a statement on May 9 that it couldn’t meet initial deadlines that day, and that a guarantor would step in if it couldn’t pay within three days. Both notes are guaranteed by state-owned firm China Bond Insurance Co.

The payments raise questions about the outcome of talks between China Bond Insurance and Country Garden, given speculation that the guarantor would likely push issuers first to pay under the guarantee program to avoid raising moral hazard issues. Any nonpayment in this program could open the door to more distressed borrowers not paying as they wouldn’t want to be seen being selective about which debts to pay.

“We cannot rule out the possibility that Country Garden might have been pressured by the regulator to cough up the cash for the coupon payment rather than triggering the payment clause under the bond guarantee program,” said Zerlina Zeng, senior credit analyst at Creditsights Inc.

China Bond Insurance may have been possibly concerned that a failed payment by Country Garden “would reduce the willingness of other developers that are covered under the bond guarantee program,” she said.

China Bond Insurance and Country Garden didn’t immediately respond to Bloomberg’s requests for comments.

Once China’s largest developer by sales, Country Garden has been hit hard by the property crisis and now is saddled with 1.36 trillion yuan of total liabilities, according to its unaudited 2023 interim results. The Foshan-based company reported contracted sales for April of 3.9 billion yuan, compared with 22.7 billion yuan in the same period last year.

China Bond Insurance is at the heart of a program introduced by authorities in 2022 to help private-sector developers struggling with the country’s property-debt crisis avoid liquidity crunches.

So far at least 33 bonds have been issued under the program, with 33.7 billion yuan raised in total, according to data compiled by Bloomberg. No coupon payments have been missed on other bonds guaranteed under the program.

Some developers that have issued notes via the program, such as CIFI Holdings Group Co., have defaulted on other bonds, but not those guaranteed by China Bond Insurance.

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The share of luxury home sales in India has tripled in five years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Luxury housing is witnessing a remarkable surge in India, reflecting the country’s growing penchant for opulence across various sectors. According to data by Anarock Research, out of 130,170 units sold across the top 7 cities in the first quarter of 2024, luxury homes priced above ₹ 1.5 crore accounted for a notable 21% share, totalling around 27,070 units.

This is a threefold surge from the first quarter of 2019, where luxury homes constituted merely 7% of sales.

In Delhi NCR, out of around 15,645 units sold in the first quarter of 2024, luxury homes priced above ₹ 1.5 crore dominated sales, with approximately 6,060 units sold, comprising 39% of the total.

According to the latest data from Anarock Research, the Indian residential property sector continued its relentless growth momentum in the first quarter of 2024, witnessing notable increases in both sales and new launches.

Anuj Puri, Chairman of the ANAROCK Group said that the mid-range and premium housing segment continued to rule the roost with approximately 76,555 units sold in the period – a near-59% overall sales share. “Affordable housing is nowhere near to recouping its stellar sales share in 2019,” said Puri.

City-wise analysis unveils interesting trends, with NCR witnessing a significant shift from the affordable segment’s dominance in Q1 2019 to luxury housing commanding the highest sales share in Q1 2024. On the contrary, Kolkata maintains its preference for affordable housing.

Puri attributes the growing traction in luxury housing to the increasing demand for larger homes in prime locations by branded developers. In contrast, the retreat of affordable housing is primarily due to lower ticket sizes. He emphasises that any revival in the affordable housing sector would depend on further government incentives and support.

In terms of new launches, approximately 28,020 luxury homes were launched in Q1 2024, constituting 25% of the total, while affordable housing saw a decline to 18% of the total new launches.

Affrodable Vs Luxury – 5-year trend

In 2019, luxury homes constituted approximately 11% of the overall new supply across the top 7 cities. Fast forward to Q1 2024, this share has skyrocketed to 25%.

In 2019, a modest 25,770 units were launched in the luxury segment for the entire year. However, in just the first quarter of 2024, a staggering 28,020 luxury homes were introduced.

On the other hand, affordable housing has witnessed a stark reversal in its trend. In 2019, affordable homes accounted for 40% of the overall new supply additions, totaling approximately 2.37 lakh units across the top 7 cities.

However, data from Q1 2024 indicates a sharp drop in its supply share, plummeting to a mere 18% of the total new launches.

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Brigade Enterprises signs deal for Bengaluru residential project valued at ₹660 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Realty firm Brigade Enterprises Ltd said on Thursday (May 9) it has inked an agreement for a prime land parcel located on Old Madras Road, Bengaluru.

Spread across 4.6 acres, the total development potential of the residential project will be around 0.69 million square feet with a gross development value of ₹660 crore.

“We would like to inform you that the Company has signed a definitive agreement for a prime land parcel located on Old Madras Road, Bengaluru. Spread across 4.6 acres, the total development potential of the residential project will be around 0.69 Mn Sqft with a Gross Development Value of ₹660 crore,” the company said in a stock exchange filing.

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The new project will be designed in line with Brigade’s commitment to deliver high-quality, sustainable spaces in urban Bengaluru, the company said.

Pavitra Shankar, Managing Director of Brigade Enterprises, said, “We are actively pursuing land acquisition opportunities in our target markets and continue to add high-quality assets to our land bank. This project is strategically located and contributes to our overall residential growth strategy. We will develop a residential property that will be executed keeping in mind customer preferences for quality and sustainability.”

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The Brigade Group has a healthy pipeline of new launches of around 12.61 million square feet in residential across Bengaluru, Chennai and Hyderabad.

Shares of Brigade Enterprises Ltd ended at ₹1,061.60, down by ₹48.90, or 4.40%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow