Puravankara Limited plans to deploy nearly ₹1,500–2,000 crore in FY27 to accelerate land acquisitions and new project launches across southern India and Mumbai, even as geopolitical tensions and rising construction costs keep the broader real estate sector cautious.

The Bengaluru-based developer remains bullish on housing demand in key urban markets, supported by strong office leasing, AI-led job creation, and steady demand in the mid-premium residential segment, according to a report by Business Standard.

Mallanna Sasalu, CEO-South, Puravankara, said, “We are not looking to raise stressed or operational capital. Our internal cash flow remains strong, enough to fund expansion and other operational expenses.” He also said that the company remains confident about housing demand in India’s primary urban markets.

Puravankara is also stepping up expansion across southern India and Mumbai. Sasalu said the company is in advanced stages of closing multiple deals and new launches are expected to be announced shortly. Most upcoming developments will be residential apartment projects, with a limited number of plotted developments.

In Mumbai, the developer is sharpening its focus on redevelopment opportunities, while also remaining open to greenfield and brownfield projects. The company plans five launches in Mumbai during FY27, with a gross development value (GDV) of ₹10,600 crore alongside a developable area of 3.81 million square feet. “We are at the beginning of a redevelopment cycle in Mumbai,” he said, adding that the scarcity of projects in such locations provides resilience even during slower market conditions.

For FY27, the company has guided for pre-sales of ₹11,200 crore and plans to sell nearly 10.74 million square feet. Sasalu said the company expects collections and revenue recognition to grow in line with sales momentum as several ongoing projects near completion.

Puravankara currently sees stable demand across Bengaluru, Chennai and Kochi in the mid-premium residential and commercial segments. Sasalu said the post-pandemic boom seen between 2022 and 2025 has now settled, while demand remains strong, supported by ongoing job creation and healthy office space absorption in Bengaluru.

“We have not seen any kind of drop in demand; in fact, we are bullish. Companies at the forefront of AI are taking up large office spaces, which shows that job generation will only increase,” Sasalu noted.

On pricing across the industry, Sasalu pointed out that property prices are likely to remain steady as developers face rising land, labour and raw material costs. He estimated that construction input costs have already risen by around 6.5 per cent due to higher prices of cement, steel and labour. However, he also said that Puravankara does not follow a fixed strategy of increasing prices by a predetermined percentage. “We go with the flow of the input cost,” he said, adding that pricing remains market-driven.