Prestige Estates Partners with Valor Group to Develop ₹4,500 Crore Office Project in Mumbai’s Andheri

Bengaluru-headquartered real estate firm Prestige Estates Projects Ltd has entered into a joint development agreement with Mumbai-based Valor Group (formerly DB Realty) to construct a large-scale commercial office complex in Mumbai's Andheri East. The project is estimated to have a Gross Development Value (GDV) of ₹4,500 crore, according to a regulatory filing issued by Prestige Estates.

The agreement  pertains to land measuring 21,978.22 square metres. The proposed commercial development will offer approximately 1.5 million square feet of leasable office space. Both Prestige and Valor will hold an equal 50% economic stake in the project.

The development will be carried out through a Special Purpose Vehicle (SPV), into which Prestige Estates will infuse ₹504 crore. The financial commitment indicates the company’s growing investment appetite in Mumbai’s commercial real estate market, which has witnessed significant demand recovery post-pandemic due to renewed corporate leasing and infrastructure developments in key areas such as the Andheri-BKC belt.

The new office complex is expected to cater to both large domestic corporates and multinational firms seeking Grade-A commercial real estate in central Mumbai locations. With infrastructure improvements such as the Mumbai Metro expansion and proximity to the airport, Andheri East has become a high-demand micro-market for office space development.

This project marks a continued expansion for Prestige Estates in the Mumbai market. On May 28, the company also announced the successful completion of its first three residential and commercial projects in the city. These include:

• Siesta at The Prestige City, located in Mulund
• Prestige Jasdan Classic
• Prestige Turf Tower, situated in Mahalaxmi

Together, these developments cover a total of 2.8 million square feet. According to Prestige Estates, the company plans to hand over nearly 700 residential units and 130 office units from these projects in the coming months, marking a significant milestone in its Mumbai foray, which began in 2022.

These handovers represent Prestige's first major deliveries in India’s most expensive property market and demonstrate the company’s ability to execute projects on schedule, a factor that could support future investor and customer confidence.

Prestige Estates, founded over 38 years ago, has developed over 300 projects across residential, commercial, retail, hospitality, and mixed-use segments. With a growing footprint in key Indian metros, the firm has recently made strategic moves to enter the Delhi NCR market.

Prestige Estates’ Chairman and Managing Director, Irfan Razack, has already highlighted the company’s plan to transform the real estate landscape in the Delhi NCR region. He pointed out that the firm intends to address longstanding challenges in the market, particularly around maintaining high standards of quality and ensuring timely project delivery. This expansion into the Delhi NCR is part of Prestige Estates’ wider strategy to broaden its presence across major tier-1 cities in India, aligning with the country’s growing real estate sector fueled by increasing urbanization and significant infrastructure development.

Prestige’s recent moves, including the Mumbai office project with Valor Group, indicate its growing focus on the commercial segment. Analysts note that while residential real estate demand remains strong, commercial leasing is rebounding across key cities. Factors such as hybrid work policies, demand for flexible office layouts, and growing interest from global corporations are driving office space requirements.