Bengaluru-based real estate firm, Brigade Group, has unveiled ambitious plans for a substantial real estate venture in Chennai, targeting a development of approximately 15 million square feet by the fiscal year 2027. Notably, over 80 percent of the upcoming launches will be dedicated to the residential sector, according to Pradyumna Krishnakumar, the Executive Director of Brigade Group.
Over the next two years, the company aims to introduce 4 million sq ft of residential space and 1 million sq ft of commercial space in Chennai, involving an investment of Rs 3,400 crore. Krishnakumar indicated that 25 percent of the funds have already been committed, with the rest to be gradually released. This commitment was solidified during the Global Investors Meet 2024 in Chennai.
As part of this extensive project pipeline, Krishnakumar revealed that nearly 30 percent of the projects over the next 3-4 financial years will be concentrated in Chennai. Among the imminent launches, a mixed development project at Mount Road is in the pipeline, featuring residential and office towers with smaller retail spaces. This project is poised to be one of the tallest structures in Chennai, with apartment prices starting at Rs 3 crore.
In another significant venture, Brigade Group aims for a 3.5 million sq ft residential development in Sholinganallur’s IT belt, with an investment exceeding Rs 2,000 crore. Positioned in a prime location in a key IT hub, the company anticipates strong demand for apartments priced between Rs 1-2 crore.
Additionally, the Group is exploring the development of an office park in the southern part of Chennai, with a potential of less than 1 million sq ft.
Chennai Real Estate Resurgence
Krishnakumar highlighted the remarkable recovery of Chennai’s real estate across all segments since a substantial slowdown in 2012. According to Knight Frank India, Chennai witnessed a 5 percent year-on-year increase in new apartment sales, totaling 14,920 units in 2023. Housing unit sales also surged by 6 percent, reaching 16,272 units—indicating a positive trend compared to 2022.
The office segment exhibited impressive growth, with a colossal 92 percent increase in transactions, totaling 10.8 million sq ft in 2023 compared to the previous year. Rental levels in Chennai grew by 6 percent in 2023, outpacing major markets like Mumbai and NCR, which reported 4 percent and 2 percent growth, respectively.
Krishnakumar emphasized the premium status of certain micro-markets in Chennai, citing pricing examples where apartments in prime Chennai areas at Rs 10,000 per sq ft surpass their Bengaluru counterparts, sold at approximately Rs 8,000-8,500 per sq ft.
Despite the buoyancy in Bengaluru, Chennai, and Hyderabad, Brigade Group expressed continued interest in potential opportunities in Mumbai, NCR, and Pune.