BANGALORE/MUMBAI: Infosys Technologies is locking up huge office spaces across the country, and has leased over 9 lakh sq ft office space across major cities to expand its business.
In a recent transaction, Infosys Technologies has picked up over 2,10,000 sq ft office space on lease in Bhartiya City at Thanisandra Roadin Bengaluru, said two persons having direct knowledge of the deal. This is one of the largest leasing transactions in terms of space, taking place in Bengaluru so far this year.
The software major will be paying an annual rental of about Rs 9 crore. The lease term is a total 9 years with a clause of rental reset every three years. Infosys’ employee count stood at over 197,050 as on June 30, 2016.
“The company will pay Rs 45 per sq ft for the new property. Infosys will occupy the space in November and can seat around 2,000 employees a shift,” said one of the persons mentioned above.
An email query to Infosys remained unanswered till the time of going to press.
Bhartiya City plans to develop 10 million sq ft office space over the next few years. In the first phase, around 6 lakh sq ft of that will be fully operational by November this year. IBM has also taken 220,000 sq ft earlier this year to expand its presence in the city.
In the last quarter, the country’s second largest software exporter has signed two large office leasing transactions in Pune and Bengaluru. Infosys took 620,000 sq ft office space on lease in International Tech Park, Pune, operated by Singapore developer Ascendas in Hinjewadi Phase III. In another leasing deal, Infosys signed 150,200 sq ft space in the Confident Octans property in Electronics City in Bengaluru.
Infosys also plans to expand to cities including Indore, Mohali, Belgaum, Hubli and Nagpur, according to information on the company’s website. In Nagpur, it is developing a campus to house over 5,000 people
Demand for office space in India touched about 11 million square feet in the July-September period, the highest level in two and a half years, expanding 14% from a year ago and 9% from the previous quarter, a CBRE report showed. The growth in demand indicates an improvement in economic sentiment, with domestic and international companies upbeat about their entry and expansion strategies.
Overall prime office space absorption across the seven leading cities as of September 30 was about 28 million sq. ft. for the year. Demand was led by Bengaluru with a 24% share, Mumbai 16%, Chennai 16%, and Pune 13%, the property consultant said.
Information technology and IT-enabled service companies continued to lead office space transactions in the quarter, accounting for about 54% of the deals. Banking, financial services & insurance, along with engineering & manufacturing accounted for a share of about 10-11% each, with transactions mostly in Mumbai and Chennai.
Walls N Roof Comment: The commercial real estate has shown a very good appreciation with the growing economy. India has witnessed immense growth in the IT and ITeS sector and the trend is expected to continue in the forth-coming time. The prime cities like Thane, Mumbai , Pune , Chennai , Bengaluru have seen a growth trend. The BFSI sector has also made its contribution for this.
Due to high demands, there is rise in the rental value as well. The commercial realty has yielded high returns to the investors. With growing infrastructure, these cities still have a lot of potential for growth in both, the residential and commercial real estate.