Top Real Estate Developers Bet Big on Office Buildings as Demand Rises
Entrenching the on-demand stimulus next year, major real estate developers are looking to add millions of square feet of office buildings over the next three to five years.
Developers have kicked off the big projects as demand for workspace rises again after the pandemic-induced disruption.
Real estate consultant Colliers expects a new supply of office buildings between 33 and 38 million square feet each year over the next three years, including the current one.
Last year saw the absorption of 30.1 million square feet of office space against a new supply of 34.8 million square feet and in 2019 there was an absorption of 44.8 million square feet. square feet versus a new supply of 33.4 square feet. Supported by strong demand from tech companies, Bengaluru-based developers such as RMZ, Prestige Estates, Embassy Office Parks REIT took the initiative to add the spaces.
RMZ, promoted by the Menda family, has 30 million square feet in various stages of construction in the markets of Bengaluru, Chennai, Hyderabad, Pune and Mumbai, and it would deliver four million square feet by the end of 2022, a said Raj Menda, president of RMZ. .
Sectors such as IT / IT, BFSI and the health sciences industry performed well through 2020 and clients added their workforce and acquired new lines of business, resulting in helped expand their real estate footprint, Menda said. Prestige is looking to add 40 million square feet over the next five years, including 28 million square feet in Bangalore, said Juggy Marwah, CEO of Prestige Office Ventures.
Embassy Office Parks REIT is developing 5.7 million square feet of projects expected to be delivered over the next three years. About 70% of the development is in Bangalore, said its deputy general manager and COO Vikaash Khadloya. â100% of our short-term delivery is already pre-committed with JP Morgan,â he said.
DLF, including its joint ventures, is developing 11.4 million square feet of space in Gurugram, Chennai and Noida. Hiranandani plans to develop nearly 4 million square feet of retail space in Powai, Thane and Panvel. US-based investor-developer Hines is looking to add three million square feet over the next three years.