Brigade Enterprises to up its affordable housing game

Brigade Enterprises to up its game in affordable housing

The real estate developer has launched a luxury housing project with just 300 units priced in the range of Rs 1.5 crore to Rs 2 crore at Chennai closer to the World Trade Centre (WTC).

Bengaluru-based property developer Brigade Enterprises is planning to launch new residential projects with a total area of 5.5 million sq. feet in the next four to six quarters. This includes over 1 million sq. feet of area under the affordable housing segment, priced up to Rs 45 lakh.

“We are seeing a pickup in demand in selective markets. There is a great opportunity for developing integrated residential townships which are well designed with lots of open space and amenities like schools, hospitals nearby. We will be launching such projects in Bengaluru, Chennai and Hyderabad over the next year,” Pavitra Shankar, Executive Director, Brigade Enterprises Limited told DH.

She said the company is also set to expand its portfolio in the affordable housing segment by adding more space.

Currently, the company has sold 600,000 sq. feet space under affordable housing, while another 1.5 million sq. feet space is under construction. It plans to develop an additional 1.5 million sq. feet space over the next six quarters.

During fiscal 2019, Brigade had sold 3 million sq. feet space under residential segment and it hopes to clock 30-40% growth over that during the current fiscal ending March 2020, she said.

The company’s pipeline of 5.52 million sq. feet projects includes Brigade Cornerstone Utopia (Phase 2), Eldorado (Phase 2) in Bengaluru, Brigade Residences at WTC Chennai, Brigade Xanadu (Phase 2) in Chennai and Brigade Citadel (Phase 1) in Hyderabad.

The company has already sold 3 million sq feet during the first three-quarters of the current fiscal with an average price realisation of Rs 5,306 per sq. feet. Overall, it has seen a 5-6% rise in the prices in selective projects.

The company has seen decent growth in affordable housing (houses priced up to Rs 45 lakh) segment. “We have been launching more affordable housing projects, mainly in the sub-Rs 45 lakh category. Our sales largely happen in the price bracket between Rs 30 lakh and Rs 80 lakh and going up to Rs 1 crore.”

Brigade Enterprises, like other real estate developers, hopes to get some incentives in the Budget such as an increase in the limit under affordable housing from the present Rs 45 lakh. “It is very difficult to deliver houses in the price range in Grade-A cities. We are not able to meet the cost,” Pavitra said.

The real estate developer has launched a luxury housing project with just 300 units priced in the range of Rs 1.5 crore to Rs 2 crore at Chennai closer to the World Trade Centre (WTC).