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Bengaluru's Brigade Group is set to make greater strides in Chennai's real estate market with plans to develop a substantial 15 million square feet by FY27. The residential sector would constitute over 80% of the launches. Executive Director Pradyumna Krishnakumar revealed the company's intention to invest Rs 3,400 crore in the next two years, allocating 4 million sq ft for residential and 1 million sq ft for commercial space. Already committing 25% of the funds, Krishnakumar outlined a strategic release plan. Over the next 3-4 years, around 30% of the projects in the pipeline are earmarked for Chennai.
Brigade Group's imminent venture includes a mixed development project on Mount Road, allocating Rs 1,000 crore for a 1 million sq ft space featuring two towers—one predominantly residential and the other hosting offices with smaller retail areas. Krishnakumar highlighted ongoing final approval stages, anticipating the development to house one of Chennai's tallest towers, with apartment prices starting at Rs 3 crore.
Another prospective launch involves a 3.5 million sq ft residential project in Sholinganallur's IT belt, with a planned investment exceeding Rs 2,000 crore. Krishnakumar foresees heightened demand in this prime IT hub, targeting apartment prices ranging from Rs 1-2 crore. Additionally, the Group eyes a sub-1 million sq ft office park in southern Chennai.
Reflecting on Chennai's real estate landscape, Krishnakumar acknowledged a resurgence after a significant 2012 slowdown. Citing Knight Frank India, he reported a buoyant market in 2023, witnessing 14,920 new apartment sales, a 5% YoY increase, and 16,272 housing unit sales, up by 6% from 2022.
The office sector saw a remarkable 92% growth with 10.8 million sq ft of transactions in 2023. Rental levels in Chennai exhibited a robust 6% growth, outperforming Mumbai (4%) and the NCR (2%). Krishnakumar emphasized certain Chennai micro-markets commanding a premium, exemplifying a Rs 10,000 per sq ft launch, compared to Bengaluru's Rs 8,000-8,500 per sq ft in equivalent prime areas.
With an optimistic outlook, Brigade Group maintains a bullish stance in Bengaluru, Chennai, and Hyderabad. The company remains open to opportunities in Mumbai, the NCR, and Pune. The real estate giant is strategically positioning itself to capitalize on the growing demand in key markets, ensuring a diversified and dynamic expansion strategy for sustained growth.
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