Bengaluru-based Prestige Group is signalling a cautious yet optimistic approach to monetising its office portfolio, projecting a potential launch of a real estate investment trust (REIT) once its commercial assets achieve sufficient scale. The developer, active across South India, Mumbai, and the National Capital Region, emphasises that steady demand for well-located, appropriately priced projects continues to underpin both residential and commercial segments.
Industry observers note that Prestige Group’s office developments currently demonstrate high occupancy levels, reflecting healthy corporate demand for premium-grade spaces. One of its recently completed 2.3 million sq ft office projects along Bengaluru’s Outer Ring Road is fully leased, while upcoming assets in Mumbai and Delhi NCR are largely pre-let, highlighting sustained interest among corporate tenants. The company targets a milestone of approximately 45 million sq ft of ready and fully leased office inventory, expected by FY28-29, before pursuing a REIT listing. Market analysts suggest that this measured approach aligns with broader urban real estate trends, where REIT launches are increasingly contingent on scale, occupancy stability, and income visibility. Achieving such thresholds is crucial for investor confidence, as it ensures predictable cash flows and robust asset backing. In Prestige Group’s case, its diversified presence across tier-1 and tier-2 cities mitigates location-specific demand fluctuations, offering both resilience and growth potential.
Residential sales also remain resilient in key markets. Sources indicate that the company’s recently launched housing projects in Bengaluru have witnessed strong uptake, while large developments in the NCR, though smaller in scale, continue to perform well. Experts attribute this to Prestige’s ability to match product offerings with local buyer expectations, including pricing, design, and location convenience. Overpricing, they note, remains a key constraint across the market, underlining the importance of value-aligned urban development strategies. Looking ahead, Prestige Group is also considering an initial public offering (IPO) for its hospitality business. Management stresses that timing will depend on favourable market conditions and valuations, reflecting a broader caution in Indian real estate circles to avoid underpricing strategic assets. Urban development analysts highlight that Prestige Group’s strategy exemplifies a dual focus on urban densification and financial prudence.
By prioritising fully leased, high-quality office inventory before REIT monetisation, the company aligns with investor expectations while reinforcing sustainable urban commercial infrastructure. This measured growth approach also supports broader economic objectives, including employment generation, higher corporate tenancy standards, and long-term value creation for urban real estate ecosystems.
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