Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
Tata Realty and Infrastructure Ltd. (TRIL), the real estate development arm of the Tata Group, is set to acquire a sprawling land parcel of 25.3 acres in Bengaluru for a sum of approximately Rs 986 crore. The transaction was disclosed through an official regulatory filing on August 8. The acquisition was facilitated by TRIL's wholly-owned subsidiaries, TRIL Bengaluru Real Estate Five and TRIL Bengaluru Real Estate Six and the seller was Graphite India. Although the transaction's binding documents have been recently inked, the process of registering the deal is anticipated to conclude in the near future, as per a regulatory filing.
The acquired land is located in Doddanekundi Village, an area highly coveted by real estate experts due to its adjacency to the bustling IT hub of Whitefield. The prevailing land prices in this region range between Rs 25 to 30 crore per acre, highlighting the strategic value and importance of this acquisition for both TRIL and the Tata Group as their deal set the valuation of the land parcel at approximately Rs 40 crore per acre.
Moreover, TRIL has unveiled its ambitious expansion plans for Bengaluru, aiming to introduce a substantial 5 million square feet of office space by the end of the year. This venture includes the establishment of two IT parks, requiring an investment of Rs 4,000 crore. These IT parks are strategically positioned in key office segments such as Hebbal and the eastern IT corridor of Whitefield, spanning approximately 30 acres.
In the fiscal year 2023 (FY23), India witnessed a total of 87 land deals, collectively covering an area of 1,862 acres. Of these deals, 76, totalling nearly 1,059 acres, occurred in the top seven cities. The remaining 11 transactions, spanning around 803 acres, were distributed across Tier-2 and Tier-3 cities like Ahmedabad, Kurukshetra, Lucknow, Nagpur, Panchkula, Panipat, Raigad, and Surat.
While the number of deals rose by about 50% from FY22, the proportional increase in land area was comparatively modest, indicating a trend of developers engaging in a larger number of transactions involving smaller land parcels. Around 57 distinct deals were dedicated to residential or plotted developments during FY23, encompassing over 951 acres.
In the context of robust residential sales, leading developers like Godrej Properties, Birla Estates, Gaurs Group, Sobha Ltd, and others capitalised on the housing market's momentum by strategically acquiring land for diverse developments in FY23. These acquisitions encompassed data centres, warehousing, industrial developments, and other undisclosed industries across cities like MMR, Hyderabad, and Chennai.
Tata Realty and Infrastructure Ltd's significant land acquisition in Bengaluru, along with the broader trends in India's real estate market, reflects the dynamic nature of the sector and developers' strategic initiatives. The acquisition highlights TRIL's commitment to growth and expansion while contributing to the evolving landscapes of both commercial and residential real estate. The trends observed in land transactions underscore the changing priorities of developers and the industry's response to the evolving market dynamics.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
