Bengaluru-based property developer Brigade Enterprises reported a more than threefold jump in its Q3 consolidated net profit to I236.24 crore and its sales bookings rose 63% to 32,492 crorein the December quarter. Pavitra Shankar, managing director,

Brigade Enterprises, talks

to Raghavendra Kamath about the company’s plans and outlook for the real estate sector.

What are your launch plans for theremainder of FY25 and FY26? We have a robust pipeline of launches across multiple cities.We are focusing on both premium and mid-segment residential projects in Bengaluru, Chennai,and Hyderabad,among other key marKkets.

What kind of price increases have youimplemented over the last six months? We are seeing prices increase across our portfolio.We have seen it improve 37-40% year-on-year across both residential and commercial. Going forward,we anticipate pricing to increase annuallyanywhere around 8-129%, depending on the project and submarket.

What kind of growth are you seeing in office leasing?

The office leasing market remains resilient, with demand coming from both global capability centres (GCCs) and domestic companies. Key sectors that are driving leasing include IT, BFSI,and flex

| more,return to office is

® PAVITRA SHANKAR, MANAGING DIRECTOR, BRIGADE ENTERPRISES

‘We expect prices to rise by 8-12% in our pmjects

WITH ECONOMIC STABILITY, FAVOURABLE INTEREST RATES, AND CONTINUED

URBANISATION, WE EXPECT HEALTHY GROWTH IN SALES VOLUMES

workspaces. Bengaluru, Hyderabad,and Chennai continue to remain key markets due to strong talent pools and infrastructure improvements. Hybrid work models have stabilised,and companies are actively seeking quality office spaces in well-connected locations. Further | encouraging spaces to be

taken up especially in flex and managed office.

Will Brigade tweak apartment sizes, ticket sizes and others going forward due to the Budget sops and other factors?

There has been a dramatic increase in pricing over the last two years.

| Demand for bigger units had also

increased post Covid-19.The combination of the two factors hasled toan increase in supply of pre | mium housing and upper mid seg ment housing, which is seeing good demand. Over the next few years,we also see an increased traction in the lower range of the mid-segment due to sensitivity to the exponentially higher overall

| ticket sizes from both unit size and

pricing per square foot.

What kind of impact doyou see of the Budget proposals on residential real estate?

The recent Budget proposals are expected to have a positive impact on the residential real estate market. Key measures such as incentives for infrastructure development,enhanced deductions on home loan interest,and tax benefits for residential property investors are likely to boost market sentiment and stimulate demand.

Besides, the focus on urban infrastructure development will enhance the attractiveness of residential markets in key cities, creating new opportunities for growth and development.

Do you expect affordable housing toseearevival with the recent drop in interest rates? Affordable housing will need focused initiatives like a revival of PMAY and reduced GST on input costs for specifically affordable housing projects.The current cap of 45 lakhwaslast setin 2019 and needs to be revisited

What is your outlook for residential salesin 20257

Demand continues tobe strong, especiallyin the mid-to-premium housing categories.With economic stability,favourable interest rates, and continued urbanisation,we expect healthy growth in sales volumes. End-user demand remains strong,and investor interest is gradually returning to the market.