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Wipro, India's fourth-largest IT company, has embarked on a strategic sale of its office assets in Bengaluru and Hyderabad, as part of a broader move to streamline operations and optimize its real estate portfolio. This decision aligns with the company's recent transition to a hybrid work model, mandating employees to spend at least three days a week in the office. The assets under consideration for sale include portions of Wipro's campuses in Gachibowli, Hyderabad, and Electronic City, Bengaluru. Insiders reveal that the company aims to monetize these non-core real estate holdings, which have become less essential under the new working model. Specifically, Wipro plans to sell about 14 acres of its Gachibowli land, while deliberating over the potential divestment of its entire 25-acre campus in Electronic City. Wipro's Bengaluru operations encompass three sites, including the expansive Electronic City campus, which boasts over 200,000 sq ft of built-up area. In Hyderabad, the company's presence spans three campuses, located in the city's financial district and Manikonda area. These properties, primarily government-allocated land, were acquired by Wipro over two decades ago. This shift in Wipro's asset management coincides with the company's adoption of a compulsory hybrid work policy, effective from November 15, which mandates employees to work from the office for a minimum of three days weekly. As of the September quarter, Wipro's workforce numbered 244,707, with a notable attrition rate of 15.5%. The move to a hybrid working model is not just a trend within Wipro but reflects a broader transformation in India's IT sector, impacting the commercial real estate market significantly. This evolution underscores the changing role of office spaces, transitioning from places of occupancy to hubs of collaboration and innovation. The resilience of India's commercial real estate sector, even amidst global economic challenges, is noteworthy. The sector has thrived, mainly boosted by the country's skilled workforce and cost-effective operations. Recent data underscores this growth, highlighting an 18-month peak in office space absorption in major markets during the September quarter. Leasing activity in the top seven office markets reached a six-quarter high of 10.37 million sq ft, a 30% increase from the previous quarter. In conclusion, Wipro's decision to sell part of its real estate assets in Bengaluru and Hyderabad is a strategic response to the evolving dynamics of the workplace and the commercial real estate market. This move is emblematic of the larger shifts occurring within India's IT industry and the commercial real estate sector, signalling a new era of operational efficiency and innovation-driven work environments.
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