Shapoorji Pallonji Group to Expand IT Park Portfolio
Mumbai-based Shapoorji Pallonji Group is strategically positioning itself for growth in the information technology sector by planning a substantial 52% expansion of its IT properties. This expansion will involve augmenting the real estate giant's existing portfolio by approximately two million square feet by the upcoming year. This move is particularly noteworthy given the current market climate, where many other major developers are adopting a more cautious approach to commercial properties.
SP Ifocity Brand and Current Holdings
The group's IT parks operate under the brand name SP Ifocity, catering to IT and IT-enabled services within software technology parks and Special Economic Zones (SEZs). Currently, Shapoorji Pallonji Group's IT park and SEZ holdings encompass a notable five million square feet of space, strategically distributed across key locations including Gurgaon, Manesar, Pune, and Chennai.
Diversification and Future Plans
Headed by billionaire Pallonji Shapoorji Mistry, the 150-year-old conglomerate has diversified interests spanning construction, textiles, power, and various other sectors. The real estate division of this established group is poised to further develop commercial hubs within its ongoing projects throughout the country.
Navigating Market Dynamics
While IT space development experienced significant growth during 2005-06, the subsequent economic downturn, significantly impacting demand from IT and related firms, led to a considerable setback in 2008, forcing a reassessment of expansion plans. Recognizing this, the Shapoorji Pallonji Group is now proceeding with a cautious approach before adding further space to its existing projects across India.
Market Analysis and Expert Commentary
Industry experts observe that Shapoorji Pallonji Group stands out as one of the few real estate players currently expanding their commercial property holdings. In contrast, a considerable number of developers are refraining from launching new projects, and existing clients are actively seeking alternative locations to mitigate costs. This trend points towards a perceptible slowdown in demand for commercial properties.
Demand for SEZs
Conversely, the demand for SEZs is experiencing an upward trend, primarily driven by the limited availability of such specialized spaces.
Looking Ahead
The company is actively exploring opportunities in key metropolitan areas, including Mumbai, Pune, the National Capital Region (NCR), Kolkata, Chennai, and other cities across the national landscape, for the purpose of developing both residential and commercial projects.