Brigade Enterprises expands annuity portfolio, explores new asset classes for growth

South India–focused real estate developer Brigade Enterprises Limited is strengthening its annuity portfolio across office, retail and hospitality while exploring new asset classes such as industrial parks and senior living. Executive Chairman M.R. Jaishankar spoke to Sobia Khan of ET on strategic land acquisitions across key southern markets and steady demand for commercial real estate position the company for the next phase of growth.

Brigade has been expanding across residential, office, retail and hospitality while entering new segments like industrial parks and senior living. What is driving this diversification?

Our strategy has always been to maintain a balanced portfolio between residential development and annuity-generating assets such as office, retail and hospitality. Residential gives us scale and growth, while annuity assets provide predictable and stable cash flows. Over the last decade, we have consciously expanded our rental portfolio so that it becomes a strong pillar of the business.


Today, our office, retail and hospitality assets together generate significant recurring income and provide resilience even when residential cycles fluctuate. At the same time, we are looking at new asset classes that align with long-term economic trends. One such area is industrial parks. We recently launched Brigade Industrial Park near Devanahalli in Bengaluru, which is part of the aerospace and defence ecosystem emerging around the airport. The project spans about 25 acres and will initially offer around half a million square feet, with the potential to expand to nearly two million square feet.

We are also expanding our senior living portfolio. This segment is evolving rapidly in India as urban families look for integrated communities that combine healthcare, lifestyle and security. Our approach is to create multi-generational communities where senior living exists alongside conventional housing, which many residents prefer.

Brigade had earlier indicated a presales target of about 15-20% for FY26 when compared to FY25. How is the year shaping up?

The presales target was based on several planned project launches across our core markets. However, over the past six months we have experienced delays in regulatory approvals across cities. These include processes related to khata clearances and other administrative approvals that are necessary before projects can be launched.

Such delays have an immediate impact on presales because without approvals we cannot proceed with launches. As a result, some of the launches that were planned for this financial year have been pushed into the next year, which means we may fall short of the earlier target.

It is important to note that presales and revenue behave differently. Presales depend on project launches and approvals, whereas revenue recognition is linked to construction progress and registrations. While approvals affect presales momentum, they do not necessarily reflect the underlying demand for housing.

We are currently expecting a few major approvals in the coming weeks. If they come through, we will have more clarity on the final numbers. Since we are already close to the end of the financial year, we are not issuing a revised guidance at this stage.

Which segments are currently driving growth for Brigade, and how is your rental portfolio performing?

Our annuity portfolio—comprising office, retail and hospitality—continues to perform strongly and is expected to grow by around 15–18%. These segments are becoming an increasingly important contributor to the company’s overall financial performance.

At present, the combined rental income from office, retail and hospitality assets is in the range of ₹1,800–2,000 crore annually. We expect this income to grow at a blended rate in the mid-to-high teens over the next few years.

Each segment has slightly different growth dynamics. Retail assets are expected to grow around 10% in the near term because we are not adding a new mall immediately, although we have three retail projects under construction that will contribute once they are completed. Office assets may see higher growth as new developments are completed and leased. Hospitality is also performing well and should deliver mid-teen growth.

In hospitality specifically, we currently operate nine hotels with over 1,600 keys. Over the next few years, we plan to add around 9 more hotels with about 1,700 additional keys. These projects will involve an investment of roughly ₹3,400 crore through a mix of equity and debt.

Brigade has been active on the land acquisition front. How much have you invested recently and which markets are the focus?

Land is the fundamental raw material for our business, so maintaining a strong development pipeline is essential. In the current financial year, the Group has invested roughly ₹3,000–3,500 crore in land acquisitions across our key markets.

These investments are largely concentrated in Bengaluru, Chennai and Hyderabad, which remain our core growth markets in South India. We typically adopt a mix of outright land purchases and joint development agreements with landowners. Historically, this has been roughly a 50:50 mix, although recently we have leaned slightly more towards outright acquisitions.

Some of our land acquisitions in Hyderabad have attracted attention because of the pricing. For instance, we acquired a parcel in Neopolis for around ₹650 crore for about 9.7 acres, which works out to roughly ₹68 crore per acre. While that may appear high, it was actually the lowest among the plots auctioned in that area, with other developers paying significantly higher prices.

Land values in prime urban markets have increased substantially in recent years, but our focus is always on acquiring land in strategic locations that can support long-term development.

What is your outlook for office demand and the broader Indian real estate sector?

The long-term outlook for the Indian real estate sector remains positive. Currently, real estate contributes roughly 8–9% to India’s GDP, and the country’s urbanisation level is around 35–38%. Over the next decade, urbanisation could increase to over 40%, which will naturally drive demand for housing, office space and urban infrastructure.

As urbanisation accelerates, the real estate sector’s share of GDP could rise to around 15%, implying sustained growth for the industry. Residential will remain the largest driver of this growth, supported by rising incomes, urban migration and household formation.

Office demand is also expected to remain strong. India’s technology and services industries continue to expand, and the availability of skilled talent remains a major advantage. Even with the rise of technologies like artificial intelligence, the need for human expertise in areas such as software development, data analysis and advanced technology services will remain high.

While the nature of jobs may evolve, India has the potential to remain a global hub for technology and services, which will continue to support long-term demand for office space.

Could geopolitical tensions in the Middle East affect housing demand in India?

A: It is too early to assess the full impact since the situation is very recent. One possible outcome could be that more Indians prefer to hold assets in India rather than abroad. That said, there are nearly 9–10 million Indians living and working in the Gulf region, and most of them are likely to continue staying there because their livelihoods are linked to those economies.

The Gulf countries, particularly the UAE and other GCC markets, have traditionally been seen as safe and stable places to live and work. However, geopolitical uncertainties can sometimes influence investment decisions, even if they do not immediately change migration patterns.

In such a scenario, the larger impact could be on investment flows rather than on population movement. Some Indians who have been investing in overseas property markets may instead allocate more capital towards real estate in India. We have already seen that non-resident Indians contribute a meaningful share of housing demand in several cities. While it is difficult to quantify the impact right now, geopolitical developments could potentially redirect some investment capital back to the Indian residential market.