Brigade Group targets 15% pre-sales growth to ₹9,000 crore in FY26

Brigade Group targets Rs 9,000 crore in pre-sales for FY26, plans 10 million sq ft of office space in five years and may consider REIT to monetise its commercial portfolio

Real estate developer Brigade Group is targeting a 15 per cent rise in pre-sales, aiming to achieve Rs 9,000 crore by the end of the current financial year (FY26).

 

“In FY25, we achieved about Rs 7,800 crore in pre-sales, and we are looking at around a 15 per cent year-on-year increase. This takes into account factors such as new launches and other operational aspects,” said Pradyumna Krishnakumar, executive director, Brigade Group.

 

The Bengaluru-headquartered company said it expects its residential EBITDA margin to remain in the range of 28–30 per cent in FY26.

 

“Land costs are undoubtedly rising. We underwrite our developments carefully, factoring in land costs, inflation in construction, and labour expenses, which have risen by 8–10 per cent in recent years. Despite this, we continue to target over 25 per cent EBITDA margin in our residential business, and in this fiscal we should achieve 28 to 30 per cent,” Krishnakumar added.

 

 

On the commercial front, Brigade plans to add around 10 million square feet of office space over the next five years, while also exploring the option of a real estate investment trust (REIT) to monetise its commercial portfolio.

 

“As we build our commercial portfolio, we will explore the option of a REIT. At present, a REIT typically requires 15–20 million square feet, and we want ours to be successful with the right mix of properties and rentals. In the next four to five years, our portfolio will be in a much stronger position, and we are mindful of these assets and how best to monetise them,” he said.

 

Brigade currently manages about 9.5 million square feet, of which more than 8.5 million square feet is leased out. The company is completing a smaller project in Trivandrum, which has already been fully leased. Brigade remains bullish on the commercial vertical, backed by healthy occupancy and collections, generating around Rs 1,000 crore in annuity income annually.

 

The company said it has seven to eight commercial projects under construction, with a total investment of Rs 1,000 crore. About 40 per cent of this has already been incurred, while the balance will be deployed over the next two years.

 

Commenting on its managed workspace vertical, Buzzworks, the developer highlighted its plans to add about 5,000 more seats in the next 12–18 months, of which 3,000 are underway in Bengaluru and Hyderabad.

 

“Under our shared office space entity, we currently have a little over 5,000 seats. We view this entity purely as a profit-and-loss asset. Our presence is primarily in Bengaluru, with a smaller footprint in Hyderabad. Occupancy stands at about 80 per cent, and we are in discussions with clients to fully lease out the remaining space.”

 

Brigade recently listed its hospitality venture on the BSE and NSE. The business currently has about 1,700 keys at various stages of design and development. “This will require its own cost outlay, likely in the range of a few thousand crore, and will demand significant investment.”

 

Brigade has a presence across Bengaluru, Chennai, Hyderabad, Mysuru, Kochi, Trivandrum, and GIFT City, with developments across residential, office, retail, hospitality and education.