L&T Realty Aims to Develop 100 Million Square Feet in 5 Years

Engineering and construction major Larsen & Toubro (L&T) has unveiled its 'Lakshya FY26-FY31' strategic roadmap, aiming to develop over 100 million square feet of high-grade real estate over the next five years. Residential projects will comprise 70% of the development, with the remaining 30% dedicated to commercial spaces.

The company plans to launch projects in six key metro cities, including Mumbai Metropolitan Region (MMR), Bengaluru, Chennai, and Delhi-NCR. As part of this ambitious plan, L&T is looking to invest around Rs 4,400 crore. The company is eyeing a potential pre-sales compounded annual growth rate (CAGR) of 25% over FY26-31.

According to analysts, L&T has already achieved pre-sales of Rs 9,400 crore in FY26. This strong performance is a testament to the company's brand strength and execution capabilities. Despite the current market downturn, L&T is well-positioned to capture the growing demand in major cities.

In the residential real estate segment, L&T aims to focus on land acquisitions and joint developments, while also selectively scaling up its commercial portfolio. The company's Q4FY26 presentation highlights its strategy to leverage its strong brand and operational excellence to achieve its ambitious targets.

During the last financial year, L&T Realty Properties and another L&T arm, L&T Realty Developers, completed cumulative land acquisitions across Mumbai, Delhi, and Bengaluru, with an aggregate potential of 3 million square feet. This has significantly enhanced the company's medium-term development prospects.

Late last year, L&T approved the transfer of its realty business undertaking to L&T Realty through a slump sale. This move marked the beginning of a phased consolidation of all real estate assets and undertakings, vesting them in L&T Realty. The consolidation aims to create a unified, future-ready entity capable of capitalizing on the real estate growth in the country.

L&T's plans come at a time when listed peers such as Godrej Properties and Lodha are also aggressively expanding their operations despite sluggishness in the property market. Godrej Properties has more than doubled its business development in FY26, achieving Rs 42,100 crore against its target of Rs 20,000 crore. The company has set a target of Rs 20,000 crore for this year and plans to launch projects worth Rs 48,000 crore in FY27.

Lodha added 12 projects with a gross development value of Rs 60,100 crore in FY26, equivalent to 75% of the total business development done during FY22-25. Analysts believe that Lodha's launch pipeline of approximately 15 million square feet, Rs 51,400 crore in unsold inventory, and a future pipeline of 72 million square feet beyond FY27 can sustain the company's growth even if business development remains slow in the next two years.

In April this year, L&T announced that its arm, L&T Realty Properties, has acquired the entire stake in International Green Scapes (IGSL), unlocking 20 acres of prime land in Gurugram for real estate development. This acquisition further strengthens L&T's position in the highly competitive real estate market.

Overall, L&T's strategic roadmap, 'Lakshya FY26-FY31,' demonstrates the company's commitment to leveraging its strengths in engineering and construction to achieve significant growth in the real estate sector. With a focus on high-grade residential and commercial projects in key metro cities, L&T is poised to make a substantial impact in the Indian real estate market over the next five years.