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.
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.