Leasing by flex space operators inches closer to that of technology companies
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Leasing by flex space operators inches closer to that of technology companies

Leasing by flex space operators in Q1 2023 inched closer to that of technoglogy companies for the first time. Flex occupiers leased 2.1 mn sq feet of space during Q1 2023, accounting for 20%, a few paces behind the technology sector’s share at 22%. Both sectors accounted for nearly 42% of the total leasing across the top 6 cities, mentioned Colliers.

“While Hybrid working has impacted demand for conventional office spaces, it has also fueled demand for flex spaces across top markets. As long-term growth drivers for the Tech sector remain strong in India, the technology sector will continue to drive office leasing activity through a mix of conventional and flex spaces,” says Peush Jain, Managing Director, Office services, India, Colliers.

Some of the large operators who leased space earlier this year include Tablespace, Smartworks and Bhive Workspace. “The year 2023 is going to be a landmark year in the managed and flexible office segment as it is expected to witness massive expansion in its portfolio and a transformation in its offerings,” said Shesh Paplikar, Co-founder and CEO of BHIVE Workspace.

According to the report, Bengaluru and Delhi-NCR were the most preferred locations for top flex operators for their portfolio expansion. The city accounted for nearly half of the total flex leasing during the quarter, followed by Delhi-NCR at 30% share.

Along with flex, leasing by BFSI surged during the quarter, contributing to 14% of the total leasing across the top 6 cities. During Q1 2023, nearly half of the leasing through large deals was by Flex and BFSI players who remained committed to their expansion plans.

“The flexible workspace industry today accounts for over a fifth of all commercial space absorption, going neck-to-neck with the traditional office space leasing model. We have over 1 million square feet of office space in Bengaluru, including Vaishnavi Tech Park, Vaishnavi Signature and Silicon Terraces, leased to some of the biggest flexible workspace providers in the country and continue to witness high interest in the segment,” said C N Govindaraju Managing Director Vaishnavi Group.

Large technology occupiers have also been leasing spaces in flex spaces due to their added benefits, such as flexible lease terms, lower capex and modern workplace designs. This, coupled with ongoing recessionary conditions and layoffs in the technology sector, has led to a relative pushback in conventional leasing by these occupiers, said Colliers.

The year 2023 has begun on a cautious note registering a 19% YoY decline in leasing activity across the top 6 cities at 10.1 mn sq ft during the first quarter. On a sequential basis, leasing continued to drop, indicating delayed decision-making by occupiers amidst continued economic uncertainties. Bengaluru and Delhi-NCR accounted for half of the total leasing during Q1 2023, led by select large deals in flex space.

“Although office absorption faces temporary downward pressures, leasing activity will likely pick up, especially towards the latter part of the year, driven by strong growth fundamentals. Large ticket deals continue to reflect its stronghold contributing to 50% of the total leasing of the quarter, signalling positive market sentiment. From a supply perspective, while there is a robust supply pipeline, developers will likely remain cautious and avoid bringing in speculative supply,” says Vimal Nadar, senior director and head of research at Colliers India.

During Q1 2023, new supply across the top 6 cities declined 34% YoY, at 9.5 mn sq ft. Bengaluru witnessed significant new project completions, contributing to 42% of the new supply, followed by Hyderabad at 25% share. Vacancy levels and rentals remained rangebound during the quarter, as the demand was at par with supply.

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RBI policy: Is pause in rate hike a good news for your home loan EMIs?

Real estate experts cheered the moment RBI paused its rate hike on Thursday. Policy repo rate unchanged at 6.5% augurs well for home buyers and the demand in realty as a whole. If RBI had taken a rate hike which is what was expected, then home loan interest rates could have reached an all-time high amidst the inflationary pressure which could have impacted property buyers’ sentiment. The pause comes as a relief to borrowers’ home loan EMIs.

In an unexpected move, RBI kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%. Subsequently, it also kept the standing deposit facility (SDF) rate unchanged at 6.25%, while the marginal standing facility (MSF) rate and the Bank Rate were also unchanged at 6.75%. Inflation still stays above RBI’s upper tolerance limit of 6%. In February 2023, the latest reading of CPI is at 6.44%. RBI has factored inflation downward at 5.2% for the fiscal year FY24, while GDP growth is projected at 6.5%.

However, the six-member MPC decided to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target while supporting growth.

In regards to home loans, Bhavesh Kothari, Founder & CEO, of Property First said, “Home loan rates would have reached a record high if the RBI MPC had increased the repo rate by 25 basis points, as was predicted by industry experts, keeping in view the inflationary pressure. Even though inflation continues to remain outside the tolerance limit of the RBI, it has shown a bold move by leaving its benchmark lending rate unchanged. This augurs well for the sector in general and buyers in particular.”

Since the time RBI began the rate hike cycle in line with other central banks to tackle inflation, there has been a significant jump in banks’ lending and deposit rates. The reason behind this would be that rate hikes usually lead to a spike in the cost of funds for banks and hence the lenders pass on the impact to end borrowers.

Latest, RBI’s data showed that the 1-year median MCLR has climbed to 8.55% in February from 8.45% in January. Also, the share of external benchmark lending rate (EBLR) on total outstanding floating rate rupee loans surged to 48.3% by end of December 2022, while MCLR-linked loans increased to 46.1%.

As per Knight Frank, the outstanding home loans grew by 15% in FY23 till February 2023.

Also, the home loan rates have alarmingly peaked at 9.5% since RBI began to hike rates in May 2023 to tame inflation. Before April 2023 policy, RBI hiked the repo rate six consecutive times in 11 months — taking the total upside to 250 bps in the repo rate from 4% to 6.5%.

With the pause in a repo rate hike, Kothari said, “Demand for housing has been robust in the past one and a half years, and a comparatively moderate interest rate regime would prove to be greatly beneficial for the real estate sector as well as the economy.”

Meanwhile, Likhita Darshan, Vice President – Marketing & Customer Experience, Vaishnavi Group pointed out that RBI’s decision to maintain the status quo on the policy rate comes as a major relief for homebuyers who have seen their EMI swelling up by up to 17% as compared to April 2022.

Darshan added, “In the residential real estate segment, buyer sentiment has continued to be robust and this has resulted in home sales showing an appreciable rate of growth. With the apex bank maintaining lending rates this time around, this positive sentiment would get a further boost, reflected in improved sales traction and a healthy pipeline of supply in the ongoing quarter.”

Along similar lines, Ravi Subramanian, MD & CEO, of Shriram Housing said, “consumers will heave a sigh of relief post RBIs rate pause since they were starting to feel the pressure of rising interest rates. More importantly, inflation has softened, though it remains slightly higher than RBI’s tolerance level. It is expected that inflation will continue to ease and normalize within the RBIs tolerance limit. The unchanged repo rate will make it easier for home buyers to make purchase decision.”

Shriram Housing’s CEO believes that this will provide a fillip to the affordable housing segment which is crucial for the growth of the economy. MPC’s stance on repo rate will help in making housing finance solutions more accessible and affordable to the masses, especially those in the lower income segments.

However, Kalpesh Dave, Head – of Corporate Planning & Strategy, Star Housing Finance also explained that the pause in the REPO rate hike taken by the RBI, if at all provides a breather but should not be seen as a flattening of rate hike cycle as RBI in its statement has said that it remains focused on withdrawal of accommodative stance. Given continued turbulence internationally and possible slow down due to happenings in banking space in developed countries one expects the current cycle to continue.”

This means the credit cost for retail and institutional borrowers is expected to remain high and this should be factored in their budgetary planning for FY2023-24. Dave added, for existing and new home buyers who have / shall avail(ed) finance for their units should brace for continued relatively higher outgo in the form of their monthly instalments.

“One may continue to look options to refinance their existing debt obligations and even evaluate fixed rate loans if the cost benefit dynamics in the long run turn out to be positive for them,” Dave said.

On an overall sector, Sankey Prasad, CMD, Colliers India said, India’s residential markets have maintained noted 15-year high sales maintaining their trajectory in the first quarter of 2023. This will bring in a new wave of optimism amongst home buyers resulting in higher property sales.

In Dave’s view, the decision to keep the repo rate unchanged is positive news for the banking and NBFC sectors, as well as other sectors like real estate and infrastructure. He added, “We are pleased about the central bank’s decision given the possible negative effects of a raise in the repo rate and its knock-on effects on both housing demand and supply. We believe this action would significantly enhance the market for affordable and mid-income housing, in particular.”

Further, Shiv Parekh, Founder hBits highlighted that it was important that the RBI evaluated the cumulative effects of the past hikes. Keeping the repo rate unchanged at 6.50% will add a wave of relief across industries especially the real estate sector; the sector has been in distress due to successive hikes for the last six months. Most industries were affected due to the high rate of working capital and real real estate was no exception.

According to Parekh, there needs to be a balancing act for growth along with tightening monetary policy to tame inflation. At this point of time, it was important to hold the rates. This will definitely act as the boost needed by the sector. Inflation has been high due to external factors as well. Now businesses will be able to generate more employment opportunities due to the growth effected through easy money availability.

Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “From a real estate market perspective, the sector has weathered multiple home loan interest rate increases from a low of 6.5% to 8.75%, supported by favourable house purchase affordability and the strong desire towards home ownership. Therefore, a pause in any further rise in the lending rates should support the existing growth momentum in the housing sector.”

But a rate cut after the April 2023 policy will be cherries on top of the sector.

Ramani Sastri – Chairman & MD, Sterling Developers said, “A cut in the key rates going forward would be widely appreciated as low-interest rates have played a crucial role in the revival of overall real estate demand and improvement in the liquidity situation, which is vital for the sector. There is also great confidence in real estate as an asset class compared to other asset classes today and in the long term, we expect markets will see sustained growth. With recovery of the economy, we expect that the real estate sector will contribute a substantial share to overall economic development.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE,  also believes that the pause in rate hike is a sign that the RBI’s monetary tightening is now in its final phase, which spells positive news for the real estate industry.

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RBI’s home price index increases across India despite rate hikes

Home prices in the country have gone up – albeit at a slower pace — if data collected by the Reserve Bank of India is any indication, signalling that higher interest rates have not made much impact in the sector till now.

The RBI’s All India Home Price Index (HPI) recorded a 2.79 per cent growth (year-on-year) to 302 in the third quarter (ended December) of 2022-23 as compared with 293.8 when it showed a 3.1 per cent growth a year ago despite the rise in interest rates. On a quarter-on-quarter (Q-o-Q) sequential basis, the index rose from 298, an increase of 1.34 per cent, from September 2022, according to the latest RBI data. The Y-o-Y movements in HPI varied widely across the cities, ranging from a growth of 7.1 per cent (Kochi) to a contraction of 9.0 per cent (Jaipur), the RBI said. While Lucknow, Kolkata, and Jaipur recorded sequential Q-o-Q contraction in the index, it rose for the remaining cities. In Mumbai, the HPI rose to 292.9 from 286 a year ago, Delhi from 327.7 to 336.8 and Bengaluru from 315.9 to 331.1. Kochi index shot up from 310.1 to 332.3.

The RBI data is based on transaction-level data received from the registration authorities in ten major cities — Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow and Mumbai.

“Though at first it seemed to be an issue of concern when the banks started increasing the home loan interest rates, the surging demand witnessed over the last 2-3 quarters has opened a completely new perspective. Almost in all major cities and their respective micro markets, sales across segments like premium, mid-segment and affordable, picked up,” said Sankey Prasad, Chairman & Managing Director, Colliers India.The RBI hiked the Repo rate by 250 basis points (bps) to 6.50 per cent since May 2022 to rein in inflation. Home loan rates of banks and finance companies have gone up as most of the loans are now linked to an external benchmark rate like the Repo rate.

“The sentiment remained positive and buoyant with a decadal high closing of 215,000 residential units sold across the nation. The same trend is largely expected to continue in 2023 owing to relatively lower levels of inventory overhang, a slew of new launches catering to the needs of the urban populace and a positive customer sentiment towards residential real estate as an asset class,” said Darshan Govindaraju, Director, Vaishnavi Group.

However, industry analysts are expecting the rates to come down once the retail inflation falls below the 5 per cent level in the coming quarters.
“We are of the opinion that the interest rate graph is at a peak now and it should start coming down and reduce by at least 2 per cent in coming months. Affordable and luxury segments are going to post continued growth with emerging segments such as senior living, student housing panning out well in the coming few years,” said Bhavesh Kothari, Founder & CEO, Property First.

Prasad said the strong position of our economy despite a global recessionary climate, a relatively stable job market and increasing purchase power parity are some of the factors driving the home buying decisions.

“The premium and luxury segment, in particular, has largely remained unaffected with the rising interest rates as customers are looking to invest in properties which provide them with a greater sense of living and offer them better returns as an investment,” Govindaraju said. Furthermore, as the high interest rates period has been lasting only for 3-4 quarters over the last decade as against 12-13 quarters more than 2 decades ago, the long-term growth story of the residential segment is promising, giving customers the confidence to invest in the sector early on, Kothari said.

Over the past few years, real estate prices have been on the upward trajectory reinforcing the idea that residential properties are a safe and smart investment option, Govindaraju said.

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Rate hike to spook potential buyers of affordable homes

The last week’s repo rate hike by the Reserve Bank of India, coupled with a hawkish outlook, seems to have dented the confidence realtors were exuding pursuant to earlier rate hikes. While homebuyers will have to brace for a price hike for a combination of reasons, developers fear that this will particularly spook the affordable homes segment.

“With the financial burden on homebuyers, we may see some pressure on sales volumes in the affordable and lower mid-range housing segments, which are more cost-conscious,” underscored Anuj Puri, Anarock Property Consultant Pvt Ltd.

Since May 2022, the repo rate has been raised by 250 basis points (bps), with the latest hike of 25 bps on Wednesday last, taking it to 6.5%. Courtesy this, homebuyers are staring at the prospect of home loan rates breaching 9.5%-mark soon. This is accentuated by the fact that the apex bank has left the door open for further tightening, stating that inflation control is its immediate prerogative.

“The Reserve Bank did not rule out further interest rate hikes, which has compelled me to relook at my home loan options,” said Bengaluru-based lawyer Amrita Jain, who is looking for a residential property in the city. She’s now leaning towards a fixed interest rate home loan programme, driven by the uncertain horizon.

The rate hike of 25 bps will make EMIs (equated monthly instalments) expensive by ~ 2-4%. Borrowers will either have to shell out more money to repay their loans or will have to extend their tenure, pointed out V Swaminathan, executive chairman of loan distributor Andromeda Sales.

Piling on other cost hikes

The rise in credit costs (for both, buyers and developers) mounted over the inflationary pressures on various input costs, be it construction material or labour, the developer community unanimously agree on an uptick in housing prices.

“I see a drastic movement upwards in pricing across India,” said Bhavesh Kothari, founder and chief executive of realty consultancy Property First. “Prices will go up because construction costs have shot up in the last two years by 25-30%. Land prices have doubled, at the very least, because of which the new projects which are coming up are at a much higher rate. Adding to this is the increased cost of funding,” he explained.

“As a precursor, we had increased the rates in January earlier this year and we’ll probably wait till March for a next round of general increase,” informed chief financial officer of Brigade Enterprises, Atul Goyal.

The counter-strategies

Egged by the stress on price lines, real estate firms are now looking to change their product-mix to maintain sales volumes.

Developers may reduce the size of apartments, so that even if the price for the buyer goes up in terms of per square footage, the overall amount remains the same, said Angad Bedi, managing director at the realty firm BCD Group.

Other options include offering complementary value-added features such as complete furnishing or a certain percentage of assured rentals in larger establishments, instead of bringing down prices, he added.

On the other hand, developers such as the Vaishnavi Group have simply shifted focus to the upper premium or luxury segments which present a larger room to play within, in terms of financial margins. “These segments are affected to a lesser degree,” argued Darshan Govindaraju, director of the group.

Impact of IT job cuts

The recent series of job cuts in the technology sector has turned into a double whammy for residential realty market. “We’re watching this carefully,” said Brigade’s Goyal. Others agreed.

“In the coming few months we expect a trickle-down effect of the layoffs in the Rs 1.5 crore property bracket,” said Shivam Pathak, who is a sales manager at TG Developers. He pegged his clientele from the tech sector in Bengaluru at 60-70%.

Moving forward, a pause on the central bank’s rate hike cycle will help sustain the demand and confidence of homebuyers in the market, pointed out Ramesh Nair, CEO, India and market development, Asia, at investment management firm Colliers.

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Indian commercial real estate well poised for growth amid recession fears

The adage, “what doesn’t kill you only makes you stronger”, perfectly describes the journey of Indian real estate over a period of more than a decade. The sector has registered robust growth despite headwinds including the global financial crisis of 2008, demonetisation, and the Covid-19 pandemic, among others. As the global economy is gripped into recession fears again, India is better positioned to lead the world towards growth, and the Indian real estate sector will contribute to this growth from the front.

The crown jewel of the Indian real estate sector, the commercial real estate segment, has been leading the sector and contributing actively to nation-building. While the sector witnessed sluggishness due to the pandemic over the last three years, the return to the office, mushrooming of shared workspaces, and entry of organized players in tier-2 cities and beyond are driving the demand for quality office spaces across the country. These factors will continue to contribute towards expanding the sector in the coming years while enabling the industry to remain healthy during the crisis.

International property consultants state that gross leasing volume (GLV) for the period January-September 2022 is higher by 88% and 13% as against the same periods in 2021 and 2020, indicative of the resilience of the Indian office markets. The net absorption for the first nine months of 2022 (Jan-Sep 2022) is at a three-year high of 30.3 million square feet, backed by strong supply completions with healthy pre-commitments. Markets such as Delhi NCR and Bengaluru emerged as the two biggest office markets during this period.

And while the market is posting healthy growth overall, the occupier profile saw a shuffle. Over the past few years, the share of sectors other than IT and ITeS, which includes start-ups and small businesses, in office space absorption have been increasing. Reports suggest that the share of the IT/ITeS segment fell from 33% to 27% in the third quarter of 2022 while the banking and financial services sector posted impressive gains with its share rising to 16% from 10% during the same period.  This was followed by manufacturing and telecom, healthcare, and other real estate segments holding market shares between 14% and 16%. The shared workspaces segment is scripting new trajectories. However, at the same time, the IT / ITeS sector, India’s leading office demand driver has seen absorption declining from 49 per cent in H1 2021 to 36 per cent in H2 2022, which is indicative of an industry-wide trend.

There are umpteen reasons why the commercial real estate segment emerges victorious during challenging times and its ability to reinvent itself over the years is a key highlight of its journey. By remaining agile in its methods and offering stronger investor and customer propositions, the sector continues to be an investor favourite, who bet big on its ability to create long-term value. From introducing new and effective construction techniques to bringing down the cost of construction to enabling retail investors to participate through fractional ownership and real estate investment trusts, the commercial real estate segment has continued to outperform. Furthermore, the shift of India’s demography from the lower middle class to the middle class which is being led by the large domestic and international technology and consumer durable companies rests on the availability of Grade A commercial spaces

As the country gets back to normalcy with trade and commerce picking up, employees returning to the office and the rapid emergence of new-age start-ups, commercial real estate is most likely to benefit from these developments and create numerous opportunities for landlords, developers, service providers, and the ecosystem players. It is also setting benchmarks globally in developing financially sound properties, incorporating aspects of sustainability and technology in construction to set the path for its long-term growth.

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Finest Property To Invest In 2023

Vaishnavi Premiere Bengaluru
A tribute to the city’s charm and elegance, the project has been designed in the vintage art deco style of architecture and is intended as a community for connoisseurs

There are homes that strive to provide the best luxury experience they can. And then there are homes that do not just stop there. Such homes tell a story – about their city, the residents, and about themselves. Vaishnavi Premiere is one such project. A tribute to the charm and elegance of Bengaluru, the project has been designed in the vintage art deco style of architecture and is intended as a community for connoisseurs. The towering façade, the dynamic patterns, and the majestic design make Vaishnavi Premiere a project unlike any other in all of Bengaluru! With just three residences per floor and a lavish floor-to-ceiling height, every home offers greater space. The extravagant infinity pool, handpicked amenities, grand arrival experience and unparalleled panoramic views in all directions, are all designed to enhance your experience in luxury.
The location, St. John’s Road, near MG The road is renowned for being a representative of the city’s aspirations.
It is an address coveted by many and is the perfect choice for a work of art.

Developer: Vaishnavi Group
Type of project: Ultra-luxury residences
Location: St. John’s Road, Near M.G. Road, Bengaluru
Configuration: 3 bedroom residences
• Art deco style of architecture
• 35 exclusive residences
• Large balcony decks
• Impressive iconic elevation
• Terrace with extensive amenities
• Rooftop infinity pool
Launched in: October 2022
Possession: September 2025
Current Status: Under construction

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Building A Boutique Bengaluru

When Darshan Govindaraju joined his father’s highly successful real estate business, Vaishnavi Group, in 2015, he helped trigger perhaps the biggest change the Bengaluru-based company had experienced in its 17 years of operation.

It wasn’t something that the firm’s thousands of satisfied customers would notice when they moved into their thoughtfully planned homes or state-of-the-art commercial spaces, but it was significant nonetheless, particularly in terms of sustainability.

What Govindaraju, who while sharing a surname with CN Govindaraju is not to be confused with the company’s Founder and Group Managing Director, had realized was that, if the constituent parts of a building could be made in factories, it would transform the company’s business model and drastically improve the quality and speed of delivery it offered customers.

“We were one of the first movers in India to use off-site precast construction for large-scale residential developments in excess of a million square feet [93,000 square meters],” he tells The CEO Magazine.

“We were one of the first movers in India to use off-site precast construction for large-scale residential developments in excess of a million square feet.”

“It means completion times are faster and the quality is assured as there is minimal human intervention in the process. It is also environmentally friendly as it uses less water than the conventional method. Material wastage and debris at the building site is minimized. This ensures reduced pollution and less fuel used in transportation.”

It also resulted in less noise and disruption at the building site, lower assembly costs and improvements in health and safety. The foresight of his father, CN Govindaraju, in envisioning the advantages of the method helped Vaishnavi steal a march on its competitors, many who have since made the switch themselves.

“The benefits have been manifold for us and we have executed close to four million square feet [370,000 square meters] of properties using precast construction technology. Even with the COVID-19 pandemic, we have been able to deliver all our projects ahead of time over the past four years, thereby setting new benchmarks for the real estate sector in India.”

A Sustainable Approach
Vaishnavi has been at the forefront of adopting sustainable practices through innovation and technology. Whether it be forming communities nestled amid 358 trees, the usage of precast construction or using LiDAR technology to create nature-responsive architecture without cutting any of the trees at site, each project is looked at with a lens of sustainability based on site-specific conditions.

“Everyone has to be conscious of their carbon footprint today,” Govindaraju says. “Over the past few years, we have worked towards achieving an Indian Green Building Council Gold or Platinum rating for our projects. Sustainable construction which involves not just construction technology but planning for ample ventilation and sunlight, opportunities for community farming and open spaces among others, enable our customers to lead a sustainable lifestyle.”

Since 1998, Vaishnavi has delivered nearly 40 residential and commercial projects, winning over 30 major industry awards along the way. It currently has 835,000 square meters of construction underway at various stages of development.

It has earned a reputation for completing projects ahead of schedule and for its meticulous and customer-centric planning. Its stated aim is to always exceed expectations with best-in-class amenities and feature-rich dwellings.

Govindaraju joined the family business post-graduation from Babson College in Boston, United States, in 2015. He is spearheading the residential sales, marketing and customer relationship management (CRM), as well as the rapid expansion of Vaishnavi’s commercial portfolio. He also oversees the leasing and maintenance of commercial buildings.

“Vaishnavi Group is predominantly a local player, so our strength lies in Bengaluru and its peripheral markets. Our growth will involve extending our footprint in the market we are familiar with,” he says.

“We are a boutique company operating in our own niche segment and our intent is to maximize our per-square-foot earning rather than have our name up in every micro-market.”

To that end, the Group has signed a 6.5 hectare parcel of land on Bellary Road, a prime location in North Bangalore, that has a build potential of close to 232,300 square meters of Grade A commercial space, making it one of the biggest developments in the entire region.

This development will have an integrated metro station within its premises. Vaishnavi has also signed an iconic prime parcel of land in the Central Business District with a build potential of 14,000 square metres. Another major project will be high-end villas, strategically located in established micro-markets.

“We are focused on leveraging our credentials and impeccable delivery track record to expand our footprint within the city, while always staying true to our credo of, ‘Building from the Heart.’”

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Vaishnavi Group: A Renowned Real Estate Developer Building Awe- Inspiring Projects Of The Finest Caliber

Bengaluru, the Silicon Valley of India, has witnessed significant demand in the real estate market for its ever-bustling and dynamic culture. It has emerged as a key growth area for India’s new economy industries such as information technology, banking, biotechnology, e-commerce, pharmaceuticals, aerospace, research and development, clean energy and other service sectors. In recent times, the commercial real estate industry has grown exponentially in the city, with the top developers coming up with new projects in Bengaluru’s many growth corridors with good access to the city center, schools, hospitals, social infrastructure and other major localities.

Vaishnavi Group is one such prominent Real Estate Developer based in Bengaluru with over twenty four years of experience in creating landmark commercial, residential and retail projects. While Vaishnavi has always operated in the commercial real estate space since its very first project, the last 2 – 3 years have seen Vaishnavi delve into the commercial sector in a massive way with about 50 lakh square feet of commercial space developed and delivered with zero vacancy across its projects. This is right up there with any of the country’s large players today. The company always emphasises on the principles of vision, unwavering focus, emphasis on quality and an obsession with project execution and delivery across all its developments. This ethos propels Vaishnavi forward as it continuously surpasses expectations at all levels, as evidenced by its 4000+ satisfied families and a rich roster of commercial clients.

As a commercial real estate developer, Vaishnavi Group has strategically located itself across all parts of Bengaluru, and is agnostic to the scale of the project it takes up – whether there is a great opportunity in the CBD, even if it is a 50,000 or 75,000 square feet development, or in the growth corridor, where projects might vary between 5 – 25 lakh square feet. The underlying vision is to develop projects of unparalleled quality across the city. Vaishnavi has developed a significant number of buildings in the secondary business district, where a majority of startups begin their journey before moving on to the peripheral belts. It is high quality projects in these growth corridors that have given the company much leverage today, allowing it to take up large-scale projects.

Vaishnavi has delivered and leased 15 lakh square feet of Grade A office space in the established Outer Ring Road belt within the past year and is adding another 25 lakh square feet development in North Bengaluru, where the Metro Station is being housed within the premises of its land.

A Notch Above All
As a company, Vaishnavi adheres to top-notch building standards and delivers projects promptly. Its commercial buildings are primarily located in the city’s growth corridors, where there is strong existing demand, good transportation, social infrastructure and so forth. An enticing aspect of its commercial buildings is that the company has a very high floorplate efficiency. The usage of precast technology allows Vaishnavi to plan the floor plate optimally and management’s involvement in the planning stage allows the company to maximize the efficiency of each floor plate from the onset of the project. In fact, all of its buildings go through a rigorous design and planning process, which implies that the company invests substantial time and money into developing the optimal commercial building while also making them environmentally sustainable. Vaishnavi works towards an IGBC Platinum or Gold certification for its commercial buildings which ensures that a commercial tenant’s operational costs are significantly reduced over their operating period. These are the finer nuances that distinguish Vaishnavi Group’s commercial buildings.

Road Ahead
Vaishnavi Group has always placed a premium on locating its projects in good micro-markets or potential high growth markets, with an emphasis on the emerging commercial belt in North Bengaluru. Vaishnavi has also been a major CBD player in Bengaluru producing buildings of exceptional quality and visibility around the city core which has also provided the company with excellent leverage within the commercial real estate community. “With constant improvements in technology, there are always opportunities to improve the specifications of an upcoming project. Vaishnavi Group is constantly on the lookout for such opportunities to deliver bestin- class projects to improve occupiers’ operational efficiencies. Vaishnavi has primarily been a residential real estate player of big scale, with our commercial portfolio growing exponentially over the past few years.

We are further focused on leveraging our credentials and our impeccable delivery in the commercial office space market to expand our footprint widely within the city. There is a good appetite in Bengaluru for efficient and well-planned commercial spaces and we aim to be the developer of choice for all kinds of occupiers. We are keenly looking forward to leaving a positive and a highly qualitative mark on the city’s commercial office space segment,” concludes Darshan Govindaraju, Director, Vaishnavi Group.

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Vaishnavi Group leases 700,000 sq.ft. to smartworks

Vaishnavi Group, one of the top real estate companies in Bengaluru, has leased 700,000 sq. ft. to Smartworks in Vaishnavi Tech Park. This is the single largest flex office transaction in the country. The 50% pre-booked 9000+ seat center will be operational in the final quarter of 2022.

Vaishnavi Tech Park is a multi-functional IT and Business Park with a contemporary design that has been built using global offsite precast construction technology. Vaishnavi Tech Park has been developed on a land parcel of 5.6 acres and has a total leasable area of 7 lakh sq. ft.

Designed for IGBC platinum certification, the building is energy efficient as it significantly optimizes the operational expenditure. Speaking about this transaction, C N Govindaraju, Chairman & Managing Director, Vaishnavi Group said, “Vaishnavi Group has been developing commercial spaces for over two decades now and we have leased out 1.5 million sq. ft. in the last year to many marquee clients from a cross-section of organizations and government bodies. Smartworks has recently leased out 7 lakh sq. ft. at Vaishnavi Tech Park, which is the single largest managed office space transaction in the country.”

Strategically located next to the Outer Ring Road (ORR), close to the Sarjapur Junction, Vaishnavi Tech Park offers excellent connectivity to the upcoming Bellandur Metro Station and hotels such as Novotel, DoubleTree Suites by Hilton, and Fairfield by Marriott making it a vibrant business destination. Designed keeping workspace wellness in mind, Vaishnavi Tech Park is also equipped with a food court, amphitheater, outdoor sporting zones, futsal court, gymnasium, and F&B and retail zones.

CategoriesPress Coverage

Vaishnavi Group sets a new benchmark in Bengaluru’s residential plotted development with its latest offering ‘Vaishnavi Life’

BANGALORE, India, April 8, 2022 /PRNewswire/ — Vaishnavi Group, a renowned Bengaluru real estate developer with an enviable track record of over 23 years of ahead of schedule delivery, has announced the launch of ‘Vaishnavi Life’, a premium plotted development located at Yelahanka Extension, just 25 minutes from Hebbal flyover.

Spread across 45+ acres, Vaishnavi Life features pre-engineered and smart plots ranging from 1150 – 3550 sq. ft. Vaishnavi Life boasts of a host of thoughtfully planned amenities such as a courtyard-themed 32,750 sq.ft clubhouse, 14 thematic parks and over two acres of central activity space amongst others.

Commenting on the launch of the premium plotted development project, Mr. C N Govindaraju, Chairman & Managing Director, Vaishnavi Group said, “Vaishnavi Life is an outcome of a larger vision to deliver premium residential plots and thoughtful, yet luxurious amenities for discerning home buyers in Bengaluru. The company has garnered customer goodwill for delivering projects ahead of schedule. Now, through Vaishnavi Life, we at Vaishnavi are redefining the concept of premium plotted developments.”

“Currently, we see that North Bengaluru is the most preferred among seasoned investors as well as first time home buyers as a viable option for long-term real estate investment. Connectivity to the arterial Outer Ring Road as well as proximity to the Kempegowda International Airport apart from access to Bangalore’s CBD are the key factors driving this demand,” he added.

Yelahanka, touted as a high growth location is also peaceful and safe owing to the multiple defence establishments. Located before the airport toll, Vaishnavi Life, is strategically located with access to all parts of Bangalore as well as the peaceful environs of Yelahanka extension.

The residential plots at Vaishnavi Life start from Rs. 49.10 lakh onwards.

About Vaishnavi Group
Vaishnavi Group, a Bangalore based real estate company was started with the explicit aim of making a mark in the real estate segment as the most admired brand for its integrity, commitment and for exceeding expectations consistently. Started in 1998 by its charismatic leader, C N Govindaraju, a civil engineer by profession, the Group has come a long way, carving a niche for creating boutique projects, leaving an indelible mark amidst its expanding customer base. Never inclined to be a volume player, Vaishnavi Group has always been focused on smart developments that ensures micro focus and stringent quality control.

For more information log on to: www.vaishnavilife.com

For more details, please contact Priya on 91-9900962760 or mail on priya@vaishnavigroup.com