In addition, the business intends to introduce products in the commercial sector in Pune and Hyderabad.

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By the end of this year, Tata Realty and Infrastructure hopes to open 5 million square feet (msf) of office space in Bengaluru, including two IT parks, for an estimated expenditure of Rs 4,000 crore. According to Ritesh Sachdev, Senior Vice President and Head of Commercial Leasing and Asset Management at Tata Realty, the company is now expanding into cities like Bengaluru, Hyderabad, and Pune for its commercial segment.

“The company expects to invest Rs 6,000 crore in the development of around 8 msf of office space in Bengaluru and Pune. Additionally, over the next six years, we will expand into major cities across India, growing our commercial portfolio from 10 msf to 19 msf.

Since Kolkata’s real estate market has poor supply-demand dynamics, Sachdev stated Tata Realty does not expect to continue developing in Tier I cities.

The business intends to establish at least two IT parks in Bengaluru’s office market.
The launches, which will take place in areas of the city including Hebbal and the eastern IT corridor of Whitefield, would cover an area of around 30 acres. Other than the high land prices, he continued, “We are also looking at the outer ring road (ORR) and Sarjapura road. However, the infrastructure is also an issue in these locations.

Major waterlogging in sections of ORR and Sarajapura in Bengaluru last September cost the IT companies along the stretch Rs 225 crore in lost revenue.

The business intends to invest Rs 2,000 crore in Pune in order to add 3.5 msf to the non-IT commercial market under the name Intellion Edge. The business relaunched its commercial divisions under Intellion about five years ago, giving the smaller office buildings and IT parks the names Intellion Park and Intellion Square, respectively.

We are focusing on Balewadi and other western areas of Pune. The west will likely be the next growth corridor because the east corridor is already saturated. We are considering Madhapur and Trivoli for Hyderabad. Hyderabad will likely start this year, followed by Bengaluru and Pune because the city is currently overcrowded, according to Sachdev.

The company currently occupies 10 msf across three important markets: Chennai, Mumbai, and Gurugram.

We currently have a 4.5 million square foot flagship office park in Chennai and a second one in Gurgaon. In Navi Mumbai, we are building the largest development to date, which will be about 7. A further 1.6 msf of smaller office space is being built by us in Gurgaon. Additionally, we are developing a small IT park in Malad, Mumbai,” he continued.

The improvement in the commercial segment last year was positive, according to Sachdev, who noted that the global headwinds were slowing down the real estate market globally.

“We completed more than 60 msf in 2019, but the absorption was only about 50 to 60 msf last year. We will experience delayed absorption in the second and third quarters of this month for the commercial segment due to the slowdown in the US and European markets as well as the conflict between Ukraine and Russia, the executive said.

However, the demand would be led by the banking and manufacturing sectors, with global capacity centers (GCCs) and the semiconductor industry having a significant impact on India’s commercial sector.

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