L&T Realty Eyes 25,000 Crore Launches Across Three Cities

L&T Realty plans residential launches with a combined development potential of ₹25,000 crore across Mumbai, Gurugram and Bengaluru in H2 FY27, while targeting a 150-million-sq-ft pipeline over the next four to five years.

L&T Realty, the real estate arm of Larsen & Toubro, plans to launch residential projects with a combined development potential of around ₹25,000 crore across Mumbai, Gurugram and Bengaluru in the second half of FY27. The company expects three to four large developments to enter the market, with launches phased across the three cities.

The planned expansion strengthens L&T Realty’s presence beyond Mumbai and forms part of its strategy to build a development pipeline with visibility extending across 12 quarters. The company currently has more than 70 million sq ft of development potential across projects under execution or planning and aims to increase this to nearly 150 million sq ft over the next four to five years.

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Residential development remains the company’s primary business, accounting for an expected 85% of its portfolio, while commercial projects contribute the remaining 15%. L&T Realty plans to develop nearly 22 million sq ft of commercial space over the next five years, with a significant portion expected to generate recurring annuity income.

The company is also consolidating its property assets under L&T Realty to create a unified real estate platform. Management says the immediate priorities include acquiring projects, securing approvals and maintaining a strong development pipeline. Approvals remain a key factor determining the pace at which new projects become market-ready.

L&T Realty is focusing on larger developments in its expansion markets. In Gurugram, the company is targeting projects of around 10 million sq ft, while in Bengaluru it is pursuing larger-scale opportunities, including mixed-use township developments. The company says larger projects provide greater operational efficiency and longer development visibility.

Construction costs also remain a consideration. Costs had risen by around 5–6% at their peak amid increases in steel, aluminium, cement and copper prices linked partly to the West Asia crisis. The impact has since moderated to around 4%, while the company maintains that it does not pass the earlier cost increases directly on to customers.

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L&T Realty is also increasing its use of engineering-led construction methods, including precast technology and automation. The company expects faster construction cycles to improve capital efficiency and project returns.

The developer expects India's residential market to gradually normalise after the strong growth cycle that began following the Covid-19 period. While affordable and sub-premium housing faces greater softness, L&T Realty says demand for premium and luxury housing remains comparatively resilient, particularly in well-connected locations and projects developed by established companies.