Tata Realty Investing in Office Spaces despite WFH Concerns
Tata Realty not buying into Work From Home culture is planning for a massive office space portfolio. Tata Realty has around six million sq ft of office space ready and leased and another one million sq ft is under construction and will be ready by November in Gurgaon. The company has plans approved for another 1.3 million sq ft of commercial space in Mumbai, and as the lockdown situation improves, the company will start construction there.
The company is looking to build 45 million sq ft of office space over the next 7-10 years. According to Tata Realty MD and CEO Sanjay Dutt, the current scenario is similar to the global financial crisis when despite all the turmoil 19 million sq ft of office space was taken up by companies. “This year, between January and June around 11 million sq ft of commercial space has been committed and I believe another 10 million sq ft plus will be committed in the rest of the year, which means 20 million sq ft — despite lockdown and concerns around WFH will still get committed in India, especially when there is no supply, which is great,”.
Though this will be just about half of the 47 million sq ft of office space that was absorbed in the top eight cities of India in 2019, Dutt said the scenario will look up once the lockdown situation eases because the demand for quality A grade office space is intact, while there is a shortage of supply.