Press Coverage

South India’s real estate developer, Vaishnavi Group, announced the leasing of its space to Kohler Co., a global leader in the design and manufacture of kitchen and bath products, at Vaishnavi Icon for its largest India Experience Centre in Bengaluru. Spread across 16,425 square feet, the fourth India Kohler Experience Centre will be a hands-on playground where architects, designers and specifiers can interact with KOHLER products while exchanging ideas, planning projects and learning about the latest industry trends. It will feature some of the most innovative, design-forward products available globally and regionally, including fully functioning product displays.

Kohler joins a growing list of marquee occupiers at Vaishnavi Icon such as Consulate General of Italy along with Impelsys and Laerdal Medical, taking up premium retail spaces at Vaishnavi’s state-of-the-art properties in Bengaluru.

Commenting on the development, Darshan Govindaraju, Director, Vaishnavi Group said, “Considered India’s Silicon Valley, Bengaluru is also known for its premium retail presence and is attracting top domestic and global brands to open retail and experience stores. As one of the leading real estate developers in the country, the Vaishnavi Group has been at the forefront of building unique retail experiences with its uniquely designed and strategically located properties across Bengaluru. We are delighted to welcome the Kohler Experience Centre at Vaishnavi Icon as it will offer a distinctive experience to design enthusiasts and showcase the company’s wide array of product solutions”.

The Kohler Experience Centre showcases a wide array of artist-edition sinks, showers and Intelligent toilets and luxury bathrooms along with fully functional live displays of some of the most innovative, design-forward products sourced both globally and regionally.

Kohler India said, “We are delighted to announce the launch of our third and largest India Kohler Experience Centre and fourteenth in the world, in Bengaluru to offer a luxury design experience. With a judicious mix of innovation, design, and absolute craftsmanship, the KEC will offer a window into a world of artists from across the globe and a glimpse into their perspectives of luxury. We are excited to partner with Vaishnavi as we bring our Kohler universe to Bengaluruites”.

While the demand for villas has increased by 25 percent since August last year, it has jumped 120 percent since August 2021, data shows.

After being muted for almost a decade, villa prices in the IT capital of Bengaluru have started appreciating, with a jump of 15-20 percent compared to pre-pandemic levels, developers say. A villa in eastern Bengaluru’s Whitefield, which was available for Rs 2.8 crore, had gone up to Rs 3.2 crore by March 2023.

In fact, local brokers point out that in some prime locations like Whitefield and Hebbal in the north, prices have appreciated by more than 25 percent.

Kiran Kumar, Vice President of Bengaluru-based Hanu Reddy Realty said, “About 1-2 years back, villas in Bengaluru were selling for Rs 8,000-9,000 per sq ft but today they have jumped upwards of Rs 12,000 sq ft. However, very few inventories are available today for sale,”

Surprisingly, residential developments have always been independent villas or plotted developments (Bengaluru Development Authority plots) in Bengaluru, experts say. The city has been predominantly a villa and plotted development-driven market for the last 15 years, Pankaj Kapoor, Managing Director at real estate data analytics firm Liases Foras believes.

However, the segment saw a dip in mid-2000, when apartment culture surged along with a boost to the city’s IT sector.

“Post-Covid we finally saw an appreciation in the prices after almost a decade. While inventory continues to remain low, the launched projects are selling out within a year,” Darshan Govindaraju, Director at Bengaluru-based realtor, Vaishnavi Group, added.

Demand for villas has skyrocketed

Property listing proptech unicorn, NoBroker, said it has observed a 25 percent increase in demand for villa properties this year since August 2022.

“However, if we look at data for August 2021, as of today, there is a 120 percent increase in demand for villa properties,” Saurabh Garg, Cofounder and Chief Business Officer of NoBroker said.

Additionally, Pankaj added that villa sales in Bengaluru have gone up from 720 units in March 2021 to 1,470 units in March 2023, almost doubling the sales.

Developers in Bengaluru noted that compared to pre-pandemic levels the companies are witnessing a sharp rise in sales thus shrinking the overall available portfolios — adding to a mismatch in supply and demand.

For example, Bengaluru-based Concorde said, while they have witnessed a 30 percent spike in villa sales post Covid, their current sales from villas almost contribute to 50 percent of overall sales value across the prime locations in the city.

Why invest in a villa?

While the east Bengaluru remains one of the happening hubs for villa developments, several new micro-markets like Hennur and Devanahalli in the north, and Kanakapura Road in the south have opened up to villa launches. Whitefield, Sarjapur and Yelahanka are the top localities that have seen the highest demand for villas in the last two years, experts say.

The prices for a 1,500-1,800 sq ft villa starts at about Rs 1.5 crore. For prime locations and Grade A developments, the ticket sizes are usually between Rs two crore-three crore for more than 2,000 sq ft.

Experts say villas have appreciated more than apartments in Bengaluru over the last two years making them a unique avenue for investments.

According to Magicbricks Research, on comparing the data with last year, villas witnessed a capital appreciation of 5.36 percent YoY, while prices of multistorey apartments increased 1.86 percent YoY.

Villas give prospective buyers a sense of spacious living and the additional attraction of owning the land and being the whole and sole proprietor of the property.

“So in future, even if the real estate prices depreciate, land prices will still be on the uptick, thus providing prospective buyers a return of at least 20 percent,” Kumar said.

Post-Covid, villas in prime areas have matched or crossed the rental yield of apartments. For example, according to Liases Foras Research, the average rental yield in Bengaluru is about 5 percent, while for villas it is almost 4 percent and in some places more than 6 percent.

“This makes villas an interesting route for real estate investors. We anticipate the prices will go up further, albeit gradually, over the next few quarters,” he added.

Realty developer, Vaishnavi Group, has leased nearly half of its prime oflice space to professional services provider Aon and House of Brands Mensa at Vaishnavi Silicon terraces as it aims to strengthen its position as the preferred developer for occupiers in Bengaluru.

Aon joins the growing list of marquee occupiers across categories such as Navi Technologies and Smartworks taking up premium oflice spaces at Vaishnavi’s commercial properties in Bengaluru.

Vaishnavi Silicon Terraces, which is spread across 1.10 square feet, is situated in Koramangala, Bengaluru.

Kishan Govindaraju, Director, Vaishnavi Group said, “As one of the leading real estate developers in the country, Vaishnavi Group has established itself as the preferred partner for occupiers across the value chain. Owing to the rising demand for oflice spaces in primary and secondary business districts, we have renovated Vaishnavi Silicon Terraces in Koramangala to attract new age occupiers”.

Vaishnavi currently has over 10 million square feet of commercial and residential development in diflerent stages of development.

According to international property consultant Cushman and Wakefield, India’s oflice market across the top seven cities (Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune) recorded a net absorption of 38.25 million square feet in 2022, hitting a three-year high.

This comes on the back of increasing inflow of investments from foreign and domestic companies to spur growth in the world’s fastest growing market. With 25 years of experience in developing quality real estate, Vaishnavi Group has been the preferred partner for companies looking to expand their presence in India’s Silicon Valley. In the last year alone, it has leased 1.5 million square
feet of commercial spaces to marquee occupiers.

Bengaluru-based real estate firm Vaishnavi Group plans to allocate ₹1,850 crore over the next four years to develop its commercial division. The move comes in response to the surge in demand for commercial real estate within the city, according to a top company executive.

Until five years ago, the developer’s focus was primarily on residential projects, occasionally venturing into the commercial segment. However, in 2015-16, there was a significant increase in the demand for commercial real estate, leading to this shift in strategy, Darshan Govindaraju, the company director, told businessline.

Over the next four years, it plans to establish 4 million sq ft of commercial space, with, 0.75 million sq ft already under construction adjacent to Vega City Mall and Kanakapura Road.

“Our current plan is to move into larger-format commercial and residential projects. Office space will be Grade-A developments in established micro-markets, CBD, PBD, and SBD,” he said.

Residential developments

Vaishnavi Group has also allocated ₹1,400 crore for residential projects over the next four years. “This investment will predominantly be financed through a structured debt mechanism and sales.” Currently, the company is developing over 2 million sq ft of residential projects.

The developer has also introduced plotted developments in Mysuru. It has signed up 60 acres in the city for a project that will commence by February 2024.

Elaborating more on the opportunity in this space, Govindaraju said, “There is an excellent opportunity in the plotted development space with land prices already at ₹5,000-6,000 per sq ft. In fact, Mysuru has a good uptake; moreover, with the recently-improved infrastructure, the connectivity has improved.”

Additionally, Vaishnavi Group holds six-acre parcels in Goa. “We will build 8-10 luxury villas between ₹15 crore and ₹25 crore. We are also in talks with many luxury operators to take them as managed residences so people, when not using them, can rent them out,” he added.

As one of the world’s biggest consumer markets, India has taken an audacious step towards sustainability with its Net Zero carbon emission by 2070. This assumes significance as the country was ranked among the top 20 nations globally on the German Watch’s Global Climate Risk Index Rankings 2000-2019; in 2019, it was among the 10 most vulnerable nations ranked on this index in terms of climate risks. Here, the infrastructure and real estate sector has a crucial role to play in contributing to India’s sustainability journey while ensuring economic growth.

According to the World Economic Forum, buildings account for nearly 40% of global greenhouse gas emissions and 40% of raw material used and a shift to sustainable methods will help reduce this impact. This will lead the real estate industry which is often associated with sprawling developments, energy-intensive buildings, and resource consumption, to undergo a transformative shift towards sustainability over the next few years.

This further becomes important, as concerns about climate change and environmental degradation are now propelling home buyers and commercial space occupiers to seek projects which are more compliant – with the prevailing environmental, social and corporate governance (ESG) norms. Real estate companies are increasingly recognising the importance of embracing eco-friendly practices.

A small step towards sustainability

In 2023, India has emerged as a top country, with LEED Zero green building projects, outperforming the United States and China according to the U.S. Green Building Council (USGBC) and Green Business Certification Inc (GBCI). India accounted for 73 LEED Zero certified projects, comprising 45 percent of over 150 certified buildings. The rapid adoption of green developments have become important for the real estate industry in India which is estimated to touch $828.75 billion in market size by 2028, growing at a CAGR of 25.60% from $265.18 billion in 2023, expected to be one of the fastest growing real estate markets in the world.

Real estate companies are incorporating innovative technologies, design principles, and materials that minimize the carbon footprint of buildings while maximizing their efficiency and functionality.

Reimagining Urban Planning and Design

Sustainability in real estate extends beyond individual buildings; it encompasses urban planning and design as well. Compact, mixed-use developments that prioritize walkability and public transportation are gaining popularity. Accessible green spaces, bike lanes, and pedestrian-friendly infrastructure, further enhance the appeal of these sustainable neighborhoods. Moreover, the concept of “biophilic design” is gaining momentum, emphasizing the integration of nature into the built environment. Real estate companies are incorporating elements such as green roofs, vertical gardens, and natural materials to create spaces that reconnect occupants with nature.

The commercial real estate front is also seeing green buildings becoming a top choice among occupiers and developers. From large glass windows to reduce reliance on artificial lighting, enough green and open spaces to enable free flow of natural air as well as reusing treated water, an array of methods are being adopted to become sustainable infrastructure providers.

Real estate companies are also exploring creative ways to recycle and repurpose existing structures. Adaptive reuse is a practice that involves transforming old, disused buildings into new, functional spaces, reducing the demand for new construction.

Sustainability and Business go hand-in-hand

Moving from traditionally built projects to sustainable properties entails a higher upfront cost but the running cost becomes significantly lower over the years, as against the traditional buildings. While developers benefit from a higher rental from certified green projects over non-certified projects, occupiers are willing to pay a premium.
The embrace of eco-friendly practices in the real estate industry also has far-reaching social and economic benefits. Residents of green buildings typically enjoy lower utility bills, improved indoor air quality, and enhanced overall well-being.

The next decade is going to be crucial for the real estate industry and India’s Net Zero commitment as balancing the residential, commercial, retail and warehousing needs. As consumer preferences shift towards sustainable living and governments worldwide intensify their efforts to combat climate change, the momentum for eco-friendly real estate will only continue to grow.

India is home to some of the biggest technology giants of the world with the reputed FAANG (Facebook , Amazon, Apple, Netflix and Google) along with Microsoft, State Street and many more, establishing their biggest centres in the country. This was propelled by the availability of talented workforce and conducive government policies apart from being the only billion-plus populated consumer market after China. While these factors attracted these global giants, the presence of a thriving commercial real estate complemented their widening presence.

According to a CBRE South Asia report 2022, the total office stock in India is pegged at 773 million square feet and is one of the fastest growing markets in the world. While absorption by technology firms continues to lead the leasing of spaces, it is being closely followed by banking and financial services and life sciences firms. However, with the changing industry dynamics and customer profiles, an evolution from its current form becomes pertinent to ensure long-term viability of the sector. This is where the co-working spaces have played a pivotal role in making the commercial real estate relevant again by democratising the sector. Their popularity over the years have grown multifold and leasing by co-working space providers now stands after technology firms in office space absorption and constitute roughly over 20% of total space absorption annually. This assumes significance as commercial space absorption is usually dominated by less than 10,000 square feet, followed by medium-sized offices ranging from 10,000- 50,000 square feet transactions in 2021, a space where a majority of co-working space providers operate.

By principle, co-working spaces enable leasing of micro office units to freelancers, startups and small businesses on a flexible leasing policy which provides them with the ability to expand and consolidate their presence seamlessly. This enables small to medium business owners to tap into quality office spaces which earlier was only limited to big technology firms who lease Grade A office spaces for a stretch of several years with significant transactions involved. Co-working spaces brought this disruption with their technological platform allowing occupiers to seamlessly book desks at a fraction of cost and avail other services such as IT, F&B in a no-frills manner.

This is opening up newer verticals for the commercial real estate and bringing new business models to suit the evolving nature of businesses. Today, co-working space providers are venturing into swathes of value added services by working with vendor partners in the areas of IT services, insurance, food and beverages, transportation, retail, sports and entertainment to establish it as an exciting workplace, thereby attracting more occupiers. This enables the occupiers to position their company as people-friendly and is able to attract and retain the best talent.

What it does for commercial real estate is it creates a stickiness factor, a term widely used in the internet commerce realm. It’s imperative to ensure there is a healthy inflow of new customers while existing customers continue to operate. This fact came to the fore during the COVID-19 induced lockdown where employees for a prolonged period of time were working from home and occupiers were forced to give up their spaces by raising the force majeure clause. Interestingly, several of these occupiers resorted to occupying space at coworking providers once the lockdown opened up to enjoy the flexibility of operations while the external environment stabilised. This highlights the role of co-working space providers in making the commercial real estate segment relevant again with the hybrid way of working taking precedence.

As we look forward to the next decade of India, the country is going to be the centrepiece of developments across technology, medical and various other sectors. This necessitates the presence of a strong commercial real estate market which offers the flexibility to occupiers to be agile while reaping the benefits of an established industry.

The residential property sales in Bengaluru is unlikely to be dampened by the recent 14% hike in guidance value of immovable property by the Karnataka government owing to the strong underlying demand.

The guidance value of all immovable properties across the state was revised during 2018-19 and came into effect in January 2019. The last update to circle rates was made in 2018-19, where it was raised by 25% before the erstwhile BJP government granted a 10% rebate on stamp duty was also provided to the sector.

However, due to the outbreak of the COVID-19 pandemic, the guidance value of immovable properties has not been revised to date.

“We are quite bullish on Bengaluru’s real estate market and its long-term ability to generate stellar returns for investors. The properties will turn slightly expensive in certain micro markets in Karnataka if the guidance value exceeds the average free market rate. However, it is unlikely to impact demand sentiment,” said Darshan Govindraju, Director at the Vaishnavi Group.

According to industry experts, the revised guidance value will also help reduce spurious cases of undervalued properties by developers in the unorganised space and cash transactions.

The recent circle rate hike is also a factor of inflation, and property value going up will help the government in generating more revenues and increase spending on infrastructure.

“Given the price appreciation of over 10-20 per cent post-COVID, the revised guidance value will end up in line with market prices. The impact will be felt only in the cases where property considerations have been undervalued. I don’t foresee any impact on sales from reputed developers,” Sunil Pareek executive director Assetz Property Group.

The hike in guidance value will also be reflected in the price rise on the land sales due to better infrastructure and access. The rate hike is also expected to increase land value in markets beyond Bangalore.

Mallanna Sasalu, CEO Provident Housing, feels the rate hikes will not affect sales or acquisitions. “At 6.5% registration cost of the guidance value, the real impact is 1% on the total value of the asset, which is a minimum impact that the business and customers can take. Developed assets are close to the guidance value or a bit higher; hence mostly, there is no impact.”

Experts also feel that this circle rate hike will propel fence sitters to invest in the market before another periodic increase in circle rates causes any significant rise in property rates, reiterating Bengaluru’s stance as one of the country’s fastest-growing real estate markets.

“The market rates have increased significantly over the last few years, circle rates, which are revised periodically and hikes were paused due to the COVID-19 pandemic, have not moved in tandem and hence the hike was on the expected line,” Bhavesh Kothari, founder PropertyFirst.

Bengaluru, one of the fastest-growing real estate markets in the country, attracts investors and job seekers from across the country and the globe, maintaining healthy demand for residential and commercial properties.

According to property brokers, the prices across Bengaluru have shot up by 5% every quarter, and the average selling prices hovers anywhere between Rs 8000 per sq ft to Rs 10,000 per sq ft.

The city recorded almost a decade of high sales and new launches as compared to the other top markets in the first half of 2023. Bengaluru recorded sales of over 26000 units in the first half of 2022, led by mid income housing. It contributed around 17% of all India residential sales only behind Mumbai and NCR.

Employers embrace open-plan layouts, hot-desking, and shared spaces to encourage collaboration and flexibility

The concept of office design has evolved significantly over the years, with businesses recognising the impact of physical work environments on employee productivity, collaboration, and overall well-being. In India, the office design landscape has witnessed notable trends aimed at creating spaces that foster collaboration and prioritise employee wellness.

By embracing flexible workspaces, collaborative zones, biophilic design, ergonomic furniture, wellness spaces, technology integration, and personalisation, Indian employers are enhancing collaboration and prioritising employee well-being in the workplace.

Opening up workspaces for collaboration

Gone are the days of rigid cubicles and fixed desks; India is witnessing the rise of open workspaces, a prominent trend in office design in India. Employers now embrace open-plan layouts, hot-desking, and shared spaces to encourage collaboration and flexibility.

These designs promote interaction among employees from different teams and foster a sense of community within the workplace.

To encourage collaboration, office designers in India are increasingly incorporating dedicated zones within the workspace. These areas often feature comfortable seating arrangements, whiteboards, and technology-enabled spaces facilitating brainstorming and teamwork.

By providing such collaborative zones, employers empower employees to collaborate, share ideas, and work together effectively, ultimately boosting productivity and innovation.

Another current trend in office design is the focus on personalisation and employee empowerment. Employers are encouraging employees to personalise their workspaces, allowing them to create a sense of ownership and identity.

Flexible seating options, breakout areas, and lounge spaces give employees autonomy over their work environment, empowering them to choose the setting that suits their preferences and work style. This approach fosters a sense of ownership, satisfaction, and increased employee productivity.

Focus on wellness in tune with nature

There has been a significant focus on employee wellness in India Inc, leading to significant workspace design developments. Biophilic design, which emphasises the connection between humans and nature, has gained traction in office spaces across India.

Incorporating natural elements such as indoor plants, green walls, and ample natural lighting enhances the aesthetic appeal and promotes employee well-being. Research shows that exposure to nature in the workplace can reduce stress levels, increase creativity, and improve employee satisfaction and happiness.

Additionally, new-age workspaces also include fitness centres, meditation rooms, relaxation lounges, and even nap pods. Providing employees with access to wellness facilities allows them to recharge, reduce stress levels, and improve overall mental and physical health, resulting in a more engaged and productive workforce.

Recognising the importance of employee health and well-being, office designers in India are prioritising ergonomic furniture. Ergonomic chairs, standing desks, and adjustable workstations are becoming increasingly common.

These designs support proper posture, reduce the risk of musculoskeletal disorders, and improve employee comfort, increasing productivity and reduced absenteeism due to work-related ailments.

Building tech-first office spaces

Integrating technology into office design is a rapidly growing trend in India. Smart offices with advanced technologies such as IoT devices, intelligent lighting systems, and automated temperature controls are becoming increasingly prevalent.

These technologies enhance office operations’ efficiency and create a seamless and connected work environment. Additionally, digital collaboration tools and video conferencing solutions enable remote collaboration, bridging the gap between on-site and remote employees.

These office design trends in India are continuously evolving, reflecting the changing needs and aspirations of the modern workforce. By investing in thoughtful and innovative office designs, businesses are creating environments that promote creativity, productivity, and employee satisfaction, ultimately driving success in today’s competitive landscape.

Starting with key metros, these trends are expected to be picked up in smaller cities as well, with companies expanding their presence in such geographies to tap into the growing talent pool, thereby transforming the face of Indian offices.

India is home to some of the biggest technology giants of the world with the reputed FAANG (Facebook, [now Meta], Amazon, Apple, Netflix and Google), along with many more, establishing their biggest centres in the country. This was propelled by the availability of talented workforce and conducive government policies apart from being the only billion-plus populated consumer market after China. While these factors attracted these global giants, the presence of a thriving commercial real estate complemented their widening presence.

According to a CBRE South Asia report 2022, the total office stock in India is pegged at 773 million square feet and is one of the fastest growing markets in the world. While absorption by technology firms continues to lead the leasing of spaces, it is being closely followed by banking and financial services and life sciences firms. However, with the changing industry dynamics and customer profiles, an evolution from its current form becomes pertinent to ensure long-term viability of the sector. This is where the co-working spaces have played a pivotal role in making the commercial real estate relevant again by democratising the sector. Their popularity over the years have grown manifold and leasing by co-working space providers now stands after technology firms in office space absorption and constitute roughly over 20% of total space absorption annually. This assumes significance as commercial space absorption is usually dominated by less than 10,000 square feet, followed by medium-sized offices ranging from 10,000- 50,000 square feet transactions in 2021, a space where a majority of co-working space providers operate.

By principle, co-working spaces enable leasing of micro office units to freelancers, startups and small businesses on a flexible leasing policy which provides them with the ability to expand and consolidate their presence seamlessly. This enables small to medium business owners to tap into quality office spaces which earlier was only limited to big technology firms who lease Grade A office spaces for a stretch of several years with significant transactions involved. Co-working spaces brought this disruption with their technological platform allowing occupiers to seamlessly book desks at a fraction of cost and avail other services such as IT, F&B in a no-frills manner.

This is opening up newer verticals for the commercial real estate and bringing new business models to suit the evolving nature of businesses. Today, co-working space providers are venturing into swathes of value added services by working with vendor partners in the areas of IT services, insurance, food and beverages, transportation, retail, sports and entertainment to establish it as an exciting workplace, thereby attracting more occupiers. This enables the occupiers to position their company as people-friendly and is able to attract and retain the best talent.

What it does for commercial real estate is it creates a stickiness factor, a term widely used in the internet commerce realm. It’s imperative to ensure there is a healthy inflow of new customers while existing customers continue to operate. This fact came to the fore during the COVID-19 induced lockdown where employees for a prolonged period of time were working from home and occupiers were forced to give up their spaces by raising the force majeure clause. Interestingly, several of these occupiers resorted to occupying space at coworking providers once the lockdown opened up to enjoy the flexibility of operations while the external environment stabilised. This highlights the role of co-working space providers in making the commercial real estate segment relevant again with the hybrid way of working taking precedence.

As we look forward to the next decade of India, the country is going to be the centrepiece of developments across technology, medical and various other sectors. This necessitates the presence of a strong commercial real estate market which offers the flexibility to occupiers to be agile while reaping the benefits of an established industry.

Darshan Govindaraju, Director, Vaishnavi Group, tells Moneycontrol the company plans to commence construction of 3.75 msf of office space in Bengaluru, out of which 3.25 msf will be launched in the current financial year.

Bengaluru-based Vaishnavi Group plans to develop 6 million square feet (msf) of residential projects and 4 msf of office space in Bengaluru for a top line revenue potential of about Rs 5,000 crore.

“Last financial year, we completed about 3 msf of residential space and launched another 2.1 msf. We operate in the cost segment of about Rs 60 lakh to Rs 1 crore. However, today, we are pushing that to about Rs 6 crore,” Darshan Govindaraju, Director, Vaishnavi Group, told Moneycontrol.

The company recently completed the development of 1.2 msf of residential projects in Yelahanka, comprising 896 units. “We partnered with US-based construction company Katerra Inc and the project was one of the largest pre-cast construction projects in the south,” he added.

Among its under-construction projects, Vaishnavi Group has one in the central business district that comprises 2800 sq.ft premium apartments. The project will be completed by July next year and will be priced at Rs 21,000 per sq ft. The company is also completing a 53-acre plotted development in northern Bengaluru, which will be ready by August.

“We started the sale of the land at Rs 2,999 per sq ft but now it has appreciated to Rs 4,900 per sq ft to about Rs 50 lakh per plot. In August 2021, northern Bengaluru saw a major influx of plotted development projects. Today, those plots are seeing huge appreciation,” he added.

Vaishnavi Group also plans a 62-acre development in eastern Bengaluru’s Sarjapur locality. About 30 acres will be for plotted development, while the rest will be villas. The villas, sprawled over 32 acres, will start from Rs 11,000 per sq ft and the price of each unit will be about Rs 3.4 crore.

The company has also identified another 30-acre land parcel about 2 km away from the project for plotted development.

Additionally, the company is launching another 8 lakh sq ft in Banashankhari, and a 60-acre plotted development in a prime location of Mysuru.

“Today we are focusing on larger developments like villas and row housing, where we can maximise the sale per sq ft,” Govindaraju said.

Robust launches in office space

Govindaraju said the company plans to commence construction of 3.75 msf of office space in Bengaluru, out of which 3.25 msf will be launched in the current financial year.

“We have completed about 5 msf of Grade A office space in the city out of which about 1.5 msf was completed last year. Additionally, we are looking to enter Hyderabad this financial year,” he added.

Within six months’ time, Vaishnavi Group will also commence work on the Chalukya Hotel to develop 1.5 lakh square feet of Grade A office space in the city’s central business district for a rental return of about Rs 335 crore.

The company has currently started construction of 5 lakh sq ft of Grade A office space in southern Bengaluru, opposite Vega City Mall in JP Nagar. “It will be completed in 18-24 months. We have signed up for an additional 17-acre land parcel close to Airport Road in the north with a development potential of 2.5 msf,” said Govindaraju.