Brigade's Five-Year Growth Blueprint: Homes, Offices and a Possible REIT

In September 2025, real estate developer Brigade Group set out to achieve a 15 per cent rise in pre-sales, aiming for Rs 9,000 crore by the end of financial year 2026. Speaking on the plan, executive director Pradyumna Krishnakumar said, “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.”

On margins, the Bengaluru-headquartered company said it expects its residential EBITDA margin to remain in the range of 28–30 per cent in FY26. Krishnakumar explained the reasoning behind the guidance: “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.”

Alongside the residential push, 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. On the REIT idea, the company noted, “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.” As things stand, Brigade currently manages about 9.5 million square feet, of which more than 8.5 million square feet is leased out, and the vertical remains bullish, backed by healthy occupancy and collections, generating around Rs 1,000 crore in annuity income annually.

The group is also scaling its co-working and hospitality arms in parallel. Brigade is expanding its Buzzworks managed workspace, targeting 5,000 new seats within 12–18 months in Bengaluru and Hyderabad, and recently listed its hospitality arm on the stock exchange, with around 1,700 hotel rooms being built across various stages of development.

How did the FY26 story actually play out? Results released in May 2026 show a more mixed picture than the original target. Residential pre-sales came in at ₹7,424 crore, down about 5% versus FY25, primarily due to approval delays, with many launches pushed to Q4 or into FY27, and new launches for the year totalled 8.3 million sqft against a planned 12 million sqft. Despite the shortfall against the original 15% growth ambition, the company's underlying business held firm, with commercial leasing and hospitality picking up the slack.

Looking ahead, Brigade has now recalibrated its target for the new fiscal year. The company has set an ambitious target for FY27, aiming for pre-sales of at least ₹9,000 crore, which would mark a 20% increase from FY26, supported by a plan to launch 11.6 million square feet of residential projects with an estimated total project value of ₹11,900 crore. On the commercial side, Brigade intends to invest ₹6,000 crore in its commercial portfolio over FY27-28, financed through a mix of debt and internal accruals, and anticipates a rental upside of 10-15% on new leases at its World Trade Center Bangalore property following Amazon's partial exit. The group has also moved on a marquee commercial deal: a new 50-50 joint venture with Bain for a 10.8-acre project in Whitefield, Bangalore, which will include approximately 2 million square feet of office space and a 250-key 5-star hotel.

The latest quarter, however, shows the road to FY27's target has started slow. Pre-sales fell 5% year-on-year and 58% sequentially to Rs.1,061 crore in Q1, with 0.74 million square feet sold, as no new residential projects were launched during the quarter. For homebuyers, this points to a busier launch calendar later in FY27 across Bengaluru, Chennai and Hyderabad, as pending approvals clear and new projects come to market — worth watching if you're planning a purchase in a Brigade micro-market this year.

For prospective buyers, the takeaway is reassuring rather than alarming: Brigade's core residential margins remain healthy, its commercial rental income is stable and growing, and its balance sheet stays conservative even through a year of launch delays. A developer investing steadily in offices, hospitality and managed workspace alongside homes tends to build more complete, well-serviced neighbourhoods — the kind that hold their value over time.