Bullish on north BengaluruShankar Shankar said that Bengaluru contributes 33 msf out of the land bank of 47 million msf. Following Bengaluru, Chennai is the second-largest market for Brigade and is being followed by Hyderabad.
She stated that over 80 percent of the projects within Bengaluru will be in North Bengaluru. “The upcoming infrastructure, including the metro and the proximity to the international airport has shifted a lot of residential demand towards the north. Though the eastern IT corridor of Whitefield remains a favoured choice, it is saturated and getting land is challenging there,” Shankar stated.
Eighty percent of the coming launches will fall within the mid-income range, and ticket sizes will range between Rs 80 lakh and 1.5 crore. 1.5 crore.
“Previously, the same segment was priced at Rs 60 lakh to Rs 1.3 crore. But customers have increased their price points. About two years back, the apartments we were selling at Rs 6,000 per square feet (psf) are today selling at Rs 8,000 psf,” Shankar said.
According to the company, its share of luxury apartments being launched has increased from 5 percent to 10% currently. This month, the firm bought a piece of land at Mount Road in Chennai for more than 500 crore. Shankar said that the development will include luxury apartments that cost more than six crore rupees.
Costs of living in apartments are rising.
The Karnataka state government announced on 19 September that the value of guidance could increase by 20-30 percent starting 1 October 2023. However, it could increase by as much as 50 percent in the most dense IT corridors, Finance Minister Krishna Byre Gowda had said.
The Guidance value is the minimum amount at which the selling of a property may be recorded with the state’s government. It is also referred to as”the circle rate” in a few conditions.
Announcing the possibility of a rise in apartment prices, Shankar added that the rising demand isn’t just due to an imminent increase in the guideline price. “There are several reasons for the real estate demand in Bengaluru today. While the price of Brigade Group apartments should not increase much otherwise, the hike in general may be significant depending on how the guidance rates are changing,” Shankar said.
At present, Brigade Group has a debt of over Rs 3800 crore. The majority of this debt is owed to the building of office buildings.
The company previously told Moneycontrol that the firm will be adding around 2 million square feet of office space Grade A in Bengaluru at the close of the current fiscal year.
“We have a debt ratio of 0.5 percent. With the residential segment comprising 70 percent of our business, we believe our debt will remain stable over the next few quarters,” she said.