Prestige Group to add 10 million sq ft of office space in Bengaluru in 2 yearsPrestige Group to add 10 million sq ft of office space in Bengaluru in 2 years

Prestige Group, a renowned real estate developer based in Bengaluru, has ambitious plans to expand its office space offerings in the city. Over the next two years, they intend to add an impressive 10 million square feet (msf) of office space to their portfolio. Additionally, the company is actively pursuing deals to establish two data centers with a capacity of 50-60 megawatts in Bengaluru this year.

In a broader context, Prestige Group is gearing up to develop a staggering 28 million sq ft of office space in Bengaluru within the next five years. Nationally, their goal is to create a total of 40 msf of office space, which is expected to generate annual revenues of Rs 3,000 crore. Juggy Marwaha, CEO of Prestige Office Ventures, shared these plans with Moneycontrol.

As of now, Bengaluru has approximately 15 msf of office space under construction, and Prestige Group aims to contribute around 10 msf within the next two financial years. The company’s expansion efforts are not limited to Bengaluru alone. They have plans for 7 msf in Mumbai, 1 msf in Pune, 0.5 msf in Delhi, and 2 msf each in Hyderabad and Chennai within their 40 msf pipeline.

In terms of location, Prestige Group is focusing on areas such as Hebbal, Bellandur, Whitefield, and Varthur, covering north Bengaluru, Outer Ring Road, east Bengaluru, and the central business district (CBD). The majority of their 40 msf pipeline will consist of large business parks, with the remaining portion dedicated to standalone office spaces in CBD areas.

Prestige Group also ventured into the data center sector last year, signing a substantial Rs 400-crore deal in north Bengaluru to develop a data center with a capacity of 100 megawatts, slated for completion by year-end. They have plans to close two more data center deals this year, each with a capacity of 50-60 megawatts.

Marwaha highlighted the growth in the office sector, with leasing activity surpassing pre-Covid levels at 56 msf. Global capacity centers (GCCs) played a significant role in this recovery, with locations that traditionally leased 5-6 msf seeing a surge to 10 msf in leasing activity last year. Chennai even outperformed Hyderabad, recording approximately 8 msf in transactions.

Bengaluru’s office space landscape has seen a rise in demand from not only the IT/ITeS sector but also the Banking, Financial Services, and Insurance (BFSI) sector and manufacturing companies, which have increased their office space requirements by around 20%. Prestige Group recently secured leasing agreements with prominent firms like Deloitte in Bengaluru and the Bank of New York in Pune.

Nonetheless, challenges persist, including traffic congestion and infrastructure issues in certain parts of Bengaluru, particularly along Outer Ring Road. The expansion of the metro line in the Whitefield area’s eastern IT corridor has driven significant transactions in that region, further reshaping the city’s office space landscape, according to Marwaha.

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