Viceroy Properties Enters Commercial Realty with ₹1,600 Crore Investment Plan
Mumbai-based Viceroy Properties is set to foray into commercial real estate development with a planned investment of ₹1,600 crore over the next five years, Cyrus Mody, managing partner at the firm, told Business Standard in an exclusive interaction.
- The development will span 1.2 million square feet, including office and retail spaces, Mody confirmed.
- Construction is expected to commence by the end of 2025, starting in Mumbai, where Viceroy already has a strong residential footprint.
Commercial Realty Sees Robust Growth in 2024 and Beyond
India’s commercial leasing market has been in a high-growth phase post-pandemic, with both office space and retail sectors witnessing strong demand in 2024.
- Analysts forecast that demand will increase further in 2025, reinforcing positive investment sentiment.
- According to a Colliers-FICCI report, gross leasing of office spaces is projected at 65-70 million sq ft in 2025, a slight rise from the record 66.4 million sq ft leased in 2024.
Sectors Driving Demand and City-Wise Expansion
The leasing surge is led by Global Capability Centres, IT-ITeS, banking, finance, insurance sectors, and flex spaces, across India’s six major metropolitan areas.
- The cities driving growth include Mumbai, Delhi-NCR, Bengaluru, Chennai, Pune, and Hyderabad.
- In the retail sector, these cities, along with Kolkata, are expected to see 9 million sq ft of new space additions in 2025, according to JLL India.
Viceroy’s Residential Stronghold and Future Projects
Historically, Viceroy Properties has concentrated on residential real estate in Mumbai, particularly in Kandivali, with luxury residences priced between ₹3.5 crore and ₹25 crore.
- The company currently has 1.2 million sq ft under various stages of execution and delivery.
- A pipeline of 4 million sq ft, valued at over ₹10,000 crore, is being planned for future developments.
Upcoming residential projects include a 2-acre luxury project on the coastal road in Versova, and new launches in Bandra, signalling Viceroy’s commitment to the Mumbai Metropolitan Region (MMR).
- Focus areas for the next four to five years include Bandra, Goregaon, and Borivilli.
- The company remains open to expanding into other cities based on emerging opportunities.
Commercial Expansion Strategy and Funding Model
For its commercial real estate venture, Viceroy plans to invest ₹100 crore as equity while securing ₹200-300 crore in debt financing.
- The majority of the funding will come from sales proceeds, aligning investment with market demand.
- Mumbai’s commercial market, ranked among India’s top seven cities, makes the investment proposition attractive for real estate developers
