In two years, Prestige Group will add 10 million square feet of office space to Bengaluru

In two years, Prestige Group will add 10 million square feet of office space to Bengaluru

In two years, Prestige Group will add 10 million square feet of office space to Bengaluru

Additionally, the business said that it hopes to finalize agreements for two 50–60 MW data centers in Bengaluru this year.

CEO of Prestige Office Ventures is Juggy Marwaha.

Within the next five years, Prestige Group, a listed real estate developer located in Bengaluru, intends to create 28 million square feet (MSF) of office space in Bengaluru. According to Jugi Marwaha, CEO of Prestige Office Ventures, the company intends to build 40 MSFs total throughout India, bringing in Rs 3,000 crore a year in income, as reported by Moneycontrol.

About 15 million square feet are now under development in Bengaluru, and the business plans to add another 10 million square feet throughout the next two fiscal years.

Around 7 MSF of the 40 MSF under construction will be in Mumbai, 1 MSF in Pune, 0.5 MSF in Delhi, and 2 MSF each in Hyderabad and Chennai, according to Marwaha.

Prestige Group said that the Central Business District (CBD), North Bengaluru, East Bengaluru, and the Outer Ring Road are among the locations the business is exploring.

In particular, locations like Varthur, Bellandur, Whitefield, and Hebbal are under consideration. Large business parks will make up around 60–70% of the 40 MSF pipeline, with the remaining portion being independent office buildings in the CBD districts, the speaker said.

The business leased 1 MSF in Pune, 0.5 MSF in Chennai, and 2 MSF in Bengaluru last year.

planning for data centers

The business had started operating data centers the previous year. We agreed to pay Rs 400 crore to build a data center with a 100 MW capacity in North Bengaluru, perhaps in October. By the end of this year, we want to have the development finished," Marwah said.

According to him, the business plans to execute two contracts for data centers with a capacity of 50–60 MW this year.

Operating in Vertical GCC Office Space

Marwaha said that the GCC (Global Capability Center) sector had made a significant resurgence, even if the office sector as an asset class had eclipsed pre-Covid leasing of 56 MSF last year.

For instance, last year witnessed the leasing of 10 MSF in places that had previously leased 5–6 MSF, with the GCC accounting for the largest portion of this. Last year, Chennai passed Hyderabad and completed around eight MSF deals, he added.

According to Prestige Group, Bengaluru's primary employers are now the manufacturing and banking, financial services and insurance (BFSI) sectors, in addition to the IT/ITeS industry. The manufacturing sector has grown by at least 20%. Additionally, we leased sizable spaces to Bank of New York in Pune and Deloitte in Bengaluru, according to Marwaha.

He did, however, note that the office space industry is facing a number of difficulties, particularly in areas such as the Outer Ring Road, including traffic congestion and infrastructural failure in certain sections of Bengaluru.

Furthermore, it is now hard to obtain premises in Bengaluru's central business district. Large transactions in the region have increased since the new metro line was installed in Whitefield's eastern IT corridor, according to Marwaha.