'Economics of affordable housing have changed': Pradeep Aggarwal on Signature Global's shift to premium housing

For years, affordable housing was at the core of Signature Global's growth story. But soaring land prices, rising construction costs, and changing homebuyer aspirations are pushing the Gurugram-based developer to embrace the premium housing segment for its next phase of expansion.

"The economics of affordable housing have changed significantly," said Pradeep Aggarwal, founder and chairman of Signature Global (India), in an exclusive interview with Fortune India.

"Over the last three years, land prices, raw material costs and construction costs have increased substantially. Affordable housing in its current form does not provide sustainable margins for developers," he explained.

Industry estimates suggest land prices in Delhi-NCR have risen sharply over the past few years, while construction costs have increased due to higher steel, cement and labour expenses. At the same time, government-defined affordable housing price thresholds have remained largely unchanged, squeezing developer margins.

The shift is already visible in Signature Global's project portfolio. Over the past two years, the company has already begun expanding into premium residential projects, launching developments such as Cloverdale SPR on Southern Peripheral Road and Sarvam at DXP Estate on Dwarka Expressway. These projects cater to buyers seeking larger homes and enhanced lifestyle offerings rather than entry-level affordability.

"We have successfully delivered projects in the mid-income segment and are gradually moving towards premium and upper-mid housing," Aggarwal said.

In FY26, the company reported pre-sales of ₹8,250 crore, collections of ₹4,010 crore and revenue recognition of ₹2,600 crore. Building on that momentum, Signature Global is targeting pre-sales of ₹10,000 crore, collections of ₹5,000 crore and revenue recognition of ₹5,000 crore in FY27, driven by an aggressive launch pipeline and higher project completions.

A ₹15,000-crore launch pipeline

Signature Global plans to launch projects worth nearly ₹15,000 crore in FY27 across key Gurugram micro-markets, including Southern Peripheral Road (SPR), Dwarka Expressway and the Sohna corridor - locations that have witnessed rapid infrastructure upgrades and strong buyer interest.

The company expects pre-sales to rise to ₹10,000 crore in FY27 from ₹8,250 crore in FY26. Revenue recognition is projected to nearly double to ₹5,000 crore from ₹2,600 crore, while collections are expected to increase to ₹5,000 crore from ₹4,010 crore.

The company expects higher revenue recognition from projects that have reached advanced stages of construction and aims to deliver most of its ongoing projects over the next four to five quarters.

In FY26, Signature Global launched two premium residential projects - Cloverdale SPR in Sector 71 on Southern Peripheral Road and Sarvam at DXP Estate in Sector 37D on Dwarka Expressway.

The company’s growth strategy remains centred on three high-potential micro-markets in Gurugram- SPR, Dwarka Expressway and the Sohna Corridor, Aggarwal said. “The company plans to launch future projects across its three focus micro-markets.”

Average sales realisation increased to ₹15,250 per sq ft during FY26 from ₹12,457 per sq ft in the previous year, aided by stronger demand in premium markets and price appreciation across key locations.

"Even though input costs such as land and raw materials have increased, price hikes have been moderate from the customer's perspective," Aggarwal said.

Expanding beyond residential

FY26 also marked Signature Global's entry into commercial real estate through a 50:50 joint venture with Bengaluru-based RMZ Group. The partnership aims to develop a mixed-use project on Southern Peripheral Road in Gurugram, comprising office spaces, hotels, and retail developments.

Under the agreement, RMZ has committed to invest ₹1,283 crore to acquire a 50% equity stake in the project, providing Signature Global with both capital support and an entry into the commercial real estate segment.

Aggarwal said the company is adopting a calibrated approach toward premium and luxury housing. "The company is adopting a step-by-step approach towards premium and luxury housing," he said.

The company currently holds around 13% market share in the National Capital Region and nearly 20% market share in Gurugram in the ₹2 crore to ₹5 crore housing segment.

As of FY26, Signature Global had delivered approximately 17.9 million sq ft of projects and had a saleable area portfolio of about 53.3 million sq ft, comprising ongoing, recently launched and forthcoming projects.