Merlin Group Plans 10,000 Crore Real Estate Investment Over Five Years

Kolkata-based Merlin Group plans to deploy approximately ₹10,000 crore over the next five years as it expands its residential, commercial, retail and mixed-use real estate portfolio.

The developer has nearly 20 million sq ft of development potential that it intends to launch over the next two to three years, according to chairman Sushil Mohta.

The expansion is centred primarily on West Bengal and Maharashtra, with major projects in Kolkata and Pune. Merlin is also evaluating redevelopment opportunities in Mumbai and completing a residential development in Bhubaneswar.

The company currently invests approximately ₹1,000 crore to ₹1,200 crore annually and expects annual investment to increase by around 15% to 20%.

For FY27, Merlin is targeting approximately ₹700 crore in sales and at least ₹120 crore in profit, compared with around ₹500 crore in sales and ₹100 crore in profit in FY26.

The numbers point to an ambitious expansion cycle.

But an important distinction applies throughout the announcement:

₹10,000 crore is a five-year investment plan, while 20 million sq ft is planned development potential. Neither figure represents completed development today.

How Much Is Merlin Group Planning to Invest?

Merlin Group plans to invest approximately ₹10,000 crore over five years.

The capital is expected to support projects across:

• residential real estate;
• commercial offices;
• retail;
• mixed-use developments; and
• income-generating assets.

According to Mohta, Merlin currently deploys around ₹1,000 crore to ₹1,200 crore annually.

The developer expects this annual investment level to increase by approximately 15% to 20%.

The ₹10,000 crore figure should therefore be interpreted as a forward investment plan rather than capital already spent.

Actual deployment can depend on project launches, approvals, construction schedules, sales, financing and market conditions.

Merlin Has Nearly 20 Million Sq Ft of Development Potential

Merlin has approximately 20 million sq ft of development potential planned for launch over the next two to three years.

This is another figure that requires careful interpretation.

Development potential is not the same as:

• completed area;
• sold area;
• delivered area;
• current inventory; or
• recognised revenue.

It represents the scale of projects the company expects to bring into its development pipeline.

The eventual timing and delivery of that space will depend on project execution.

Kolkata World Trade Center Is a Major Part of the Expansion

One of Merlin's largest developments is the World Trade Center project in Kolkata.

The mixed-use project is approximately 4 million sq ft and is planned to include:

• IT and Global Capability Centre office space;
• a five-star deluxe hotel; and
• food and beverage retail.

The first phase is approximately 600,000 sq ft and, according to Mohta, is almost completely sold or leased.

Phase 2 is approximately 1.5 million sq ft.

Phase 3 is approximately 1 million sq ft.

Merlin intends to launch at least one additional phase during 2026.

The project gives the developer exposure to more than residential demand alone.

Its office, hospitality and retail components can potentially create multiple revenue streams, although their economics and execution cycles differ.

Merlin Is Also Developing a New Mall in Joka

The company is developing an approximately 400,000 sq ft mall in Joka, Kolkata.

Merlin currently generates around ₹60 crore in annual rental income, primarily from Homeland Mall and Acropolis Mall.

Once the Joka mall becomes operational, the company expects it to contribute approximately ₹50 crore of additional annual rental income.

That ₹50 crore figure is a company expectation, not current rental income.

If achieved, it would materially increase the scale of Merlin's recurring rental business.

This is strategically important because rental assets can diversify a developer away from relying entirely on project sales.

Pune Is Another Major Expansion Market

Merlin has three major projects under development in Pune.

Koregaon Park office development

The company has an office project of approximately 1.8 million sq ft in Koregaon Park.

Tathawade residential development

Merlin is developing an approximately 2 million sq ft residential project in Tathawade.

Phase 1 is around 800,000 sq ft, while Phase 2 of approximately 1.5 million sq ft has recently been launched, according to the company.

Wakad mixed-use project

The developer also has an approximately 800,000 sq ft mixed-use development in Wakad.

The project is split approximately equally between commercial and residential development.

Together, these projects give Merlin exposure to both Pune's residential and office markets.

Merlin Acquired Three Acres in Koregaon Park for About ₹300 Crore

Merlin has also acquired approximately three acres in Koregaon Park for ₹300 crore.

The company plans to develop a high-end commercial office tower of approximately 1.3 million to 1.4 million sq ft on the site.

This planned development adds to Merlin's existing Pune office pipeline.

For investors and occupiers, however, project size alone does not determine commercial success.

Future performance will depend on factors including:

• office leasing demand;
• rents;
• competing supply;
• construction costs;
• tenant quality;
• connectivity; and
• completion timing.

Merlin Is Evaluating Mumbai Redevelopment

Beyond Kolkata and Pune, Merlin is evaluating redevelopment opportunities in Mumbai.

No reviewed evidence establishes a specific investment amount, project size or launch timetable for those potential redevelopment projects.

They should therefore be treated as opportunities under evaluation rather than committed developments.

Merlin is also completing an approximately 1 million sq ft residential project in Bhubaneswar.

FY27 Sales Target Is ₹700 Crore

Merlin recorded approximately:

₹500 crore in sales in FY26

and

₹100 crore in profit.

For FY27, it is targeting approximately:

₹700 crore in sales

and

at least ₹120 crore in profit.

The sales target represents a 40% increase over the FY26 figure.

This 40% figure is a Vantage-derived calculation:

₹700 crore ÷ ₹500 crore = 1.4

The profit target represents at least a 20% increase over the reported FY26 profit figure.

This is also a Vantage-derived comparison.

Both FY27 numbers remain company targets rather than achieved results.

Merlin Sells Around 1,000 to 1,200 Homes Annually

The developer says it sells approximately 1,000 to 1,200 residential units annually.

Its primary focus remains mid-income housing.

According to Mohta, Kolkata continues to be predominantly a mid-income housing market, with the ₹50 lakh to ₹1 crore segment accounting for around 80% to 90% of supply.

This figure reflects Mohta's description of the Kolkata market in the ETRealty interview.

It should not be interpreted as a separately verified market-wide transaction statistic without additional supporting data.

Construction Costs Have Become a Major Pressure

Merlin's expansion comes against a more challenging construction-cost environment.

Mohta said construction costs had increased by approximately 20% during the year, driven largely by higher prices for inputs including aluminium and tiles.

For developers, rising construction costs create a particular problem on homes that have already been sold.

Prices on those existing bookings cannot simply be repriced to recover every subsequent increase in construction costs.

As a result, unexpected cost increases can compress project margins.

This makes execution discipline especially important when a developer is simultaneously expanding its pipeline.

Why the ₹10,000 Crore Investment Plan Matters

The size of Merlin's proposed investment is important, but the composition of the plan may matter more.

The company is expanding across:

• housing;
• offices;
• shopping malls;
• mixed-use projects;
• hospitality-linked development; and
• recurring rental assets.

This creates a more diversified real estate platform.

Residential projects can generate development sales.

Office and retail assets can generate leasing opportunities.

Completed investment properties can potentially generate recurring rental income.

Mixed-use developments can combine several of these revenue sources.

But diversification also increases execution complexity.

Different asset classes have different development cycles, tenant requirements and capital needs.

Recurring Rental Income Could Become More Important

Merlin currently reports approximately ₹60 crore of annual rental income.

The Joka mall is expected by the company to add another ₹50 crore annually once operational.

If that expectation is achieved, the incremental ₹50 crore would equal approximately 83% of Merlin's current ₹60 crore annual rental income.

This is a Vantage-derived scale comparison.

It is not a forecast of company-wide rental-income growth because the timing, stabilisation and performance of the new mall still matter.

The broader strategic point is that rental assets could become a more significant part of Merlin's business alongside development sales.

What Does the Expansion Mean for Homebuyers?

For homebuyers, a larger project pipeline can increase choice.

But the headline investment amount should not replace project-level due diligence.

Buyers should continue checking:

• RERA registration;
• project approvals;
• construction progress;
• possession timelines;
• developer disclosures;
• financing arrangements; and
• the terms of the individual sale agreement.

A developer's overall investment plan does not guarantee the delivery timetable of an individual project.

What Does It Mean for Commercial Property Investors?

Merlin's expansion in Kolkata and Pune also adds to the supply pipeline for commercial real estate.

The Kolkata World Trade Center and Pune office projects will ultimately compete for occupiers within their respective micro-markets.

Investors should therefore monitor:

• GCC and corporate leasing;
• office vacancy;
• competing Grade A supply;
• rental levels;
• pre-leasing;
• tenant concentration; and
• project completion schedules.

Large development pipelines are most valuable when occupier demand grows alongside them.

The Real Test Is Execution

A ₹10,000 crore investment plan attracts attention because of its scale.

But real estate expansion ultimately succeeds project by project.

Merlin needs to translate planned investment into:

approved projects,

successful launches,

construction progress,

sales or leasing,

and

completed assets.

Its nearly 20 million sq ft pipeline provides substantial growth potential.

The World Trade Center development can expand its commercial footprint.

The Pune portfolio broadens its geographic exposure.

The Joka mall could increase recurring rental income.

And the FY27 sales target points to faster near-term growth.

But all of these remain dependent on execution.

The most useful measure of Merlin's ₹10,000 crore plan will therefore not be the headline commitment alone.

It will be how much of the planned pipeline is launched, sold, leased and delivered over the next five years.

Frequently Asked Questions

How much is Merlin Group planning to invest?

Merlin Group plans to deploy approximately ₹10,000 crore over the next five years across residential, commercial, retail and mixed-use real estate projects.

Has Merlin Group already invested ₹10,000 crore?

No. The ₹10,000 crore figure is a five-year investment plan, not capital already deployed.

How large is Merlin Group's development pipeline?

The company says it has nearly 20 million sq ft of development potential intended for launch over the next two to three years.

What is Merlin Group's FY27 sales target?

Merlin is targeting approximately ₹700 crore in sales in FY27, compared with around ₹500 crore in FY26.

Where is Merlin Group expanding?

The main expansion markets disclosed are West Bengal and Maharashtra, particularly Kolkata and Pune. The company is also evaluating Mumbai redevelopment opportunities and completing a residential project in Bhubaneswar.

How large is the Kolkata World Trade Center project?

Merlin describes the mixed-use World Trade Center development in Kolkata as approximately 4 million sq ft.

How much rental income does Merlin Group earn?

The company currently reports approximately ₹60 crore in annual rental income, primarily from Homeland Mall and Acropolis Mall.

How much rental income could the Joka mall generate?

Merlin expects the approximately 400,000 sq ft Joka mall to contribute around ₹50 crore in annual rental income once operational. This is a company expectation, not current income.

Sources

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“Merlin Group plans ₹10,000 crore investment over five years; targets ₹700 crore sales in FY27” published on 2 October 2026 in ETRealty

Evidence Caveats

• ₹10,000 crore is Merlin Group's planned investment over five years, not verified capital already deployed.
• Nearly 20 million sq ft represents development potential planned for launch over the next two to three years. It is not completed, sold or delivered area.
• ₹700 crore of FY27 sales and at least ₹120 crore of FY27 profit are company targets.
• The 40% sales-growth figure and minimum 20% profit-growth figure are Vantage-derived comparisons based on the disclosed FY26 results and FY27 targets.
• The expected ₹50 crore annual rental contribution from the Joka mall is a company projection for when the asset becomes operational.
• The approximately 83% comparison between expected Joka mall rent and current rental income is a Vantage-derived scale indicator, not a company rental-growth forecast.
• The reported 20% construction-cost increase is based on Sushil Mohta's statement and should not be interpreted as a uniform industry-wide cost increase.
• The reviewed evidence does not provide project-level IRRs, financing costs, consolidated debt, future rental yields or investment returns.