Sumadhura Group to invest ₹2,000 cr in FY26, launch plotted housing in Devanahalli, mid-market projects across Bengaluru
Bengaluru real estate: Sumadhura Group plans to invest ₹2,000 crore in FY26 in new residential launches, including plotted developments in Devanahalli
Bengaluru-based Sumadhura Group plans to invest ₹2,000 crore in FY26 in new residential launches, including plotted developments in Devanahalli, priced between ₹75 lakh to ₹2 crore, along with mid-market projects in locations such as Whitefield, Outer Ring Road, and near Manyata Tech Park, chairman and managing director Madhusudhan Gunda told HT.com.
Commenting on the government’s decision to cut GST tax rates on key construction materials such as cement, granite, and marble, he said it would reduce taxes on inputs and, in turn, bring down real estate project costs.
“It will benefit developers, while consumer savings on essentials and appliances will fuel housing demand. For families, this means greater affordability and the dream of home ownership becoming closer to reality. Together, these changes promise to energise the real estate sector and create a positive ripple effect across the economy.”
The company is also exploring expansion into Mumbai, Pune, Chennai, and Goa, starting with residential projects in the mid to premium segment before diversifying into other asset classes. Gunda said that the company remains focused on the mid-market housing segment, with apartments priced between ₹1.25 crore and ₹3 crore, while selectively exploring luxury homes that could go up to ₹7–8 crore.
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Project pipeline and Bengaluru-Hyderabad focus
Currently, Sumadhura has delivered more than 9,000 homes spanning 12 million sq ft, with another 10 million sq ft under construction and 10 million sq ft planned for launch in Bengaluru this financial year.
“In Bengaluru, upcoming launches will include one million sq ft of plotted developments in north Bengaluru and mid-market apartments in locations such as Whitefield, Outer Ring Road, and near Manyata Tech Park. While Devanahalli in the north will primarily see plotted projects, Whitefield and ORR will host premium and luxury apartments, with select towers limited to 30–40 units of up to 5,000 sq ft each,” Gunda said.
Sumadhura, which recently entered plotted development, plans to launch two million sq ft of plotted projects every fiscal year, with prices ranging from ₹75 lakh to ₹2 crore.
In Hyderabad, the company recently launched 2.6 million sq ft and has another four million sq ft under construction, reinforcing its focus on the city as a key growth market alongside Bengaluru.
Expansion plans for Mumbai, Pune, Chennai, and Goa
Looking ahead, Sumadhura is evaluating entry into Mumbai, Pune, Chennai, and Goa, beginning with the residential segment before considering diversification into other asset classes, Gunda said.
In Mumbai, the company is exploring projects in Navi Mumbai, initially in the mid-segment range of ₹1.5–4 crore, before potentially moving into luxury housing and commercial developments. In Pune, the first projects are likely to be in Halapsar and other key residential clusters.
By 2026, the group expects to foray into Chennai and Goa, with the latter positioned as a market for second home and leisure residences starting from ₹1 crore.
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Rising land prices are a major challenge for real estate developers
Gunda pointed out that rising land and construction costs have pushed mid-segment pricing to ₹3–4 crore in eastern and northern Bengaluru, up from ₹1–2 crore just three to five years ago.
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“Land prices have risen by 100–200% and construction costs by 30–40%, making it increasingly difficult for developers to cater to the sub- ₹1 crore affordable segment. Even within the ₹1–2 crore bracket, share has shrunk to below 20% for our own portfolio,” Gunda said. “Affordable housing needs a redefinition and new incentives if it is to remain viable.”
While mid-market housing will remain its core focus, Sumadhura is also exploring opportunities to create a new brand to address the luxury segment. However, it expects luxury to account for only 10–25% of the overall residential business in the future.
The developer is targeting a 25% compound annual growth rate (CAGR) over the next decade. The company closed the previous year with revenues of around ₹1,600 crore.
