Tata Consultancy Services (TCS), India’s largest IT company, which has asked employees to resume work from the office, has leased 400,000 sq ft in Noida in one of the biggest office space transactions in Delhi-NCR.
The company has taken the space at Assotech Business Cresterra on the Noida expressway.
“Return-to-office policies implemented by large corporations are fuelling a renewed demand for high-quality office space, particularly Grade A properties. IT companies have traditionally dominated office space needs, and with most of them having ended work from home, we expect an increase in demand for Grade A office space in the coming quarters,” said Vibhor Jain, Managing Director, North India, Cushman & Wakefield.
Assotech Business Cresterra is spread across 2 million sq ft, and this was the last building of the project where TCS has taken the space.
Both companies did not respond to the email query.
Earlier, Genpact and Celebal Technologies had taken space at the same complex.
Delhi-NCR saw gross leasing volume (GLV) of 3.7 msf during October–December, the highest volume recorded in 2023. The GLV was 10% higher on a q-o-q basis and marginally lower than the healthy volumes recorded last year in the same quarter, according to Cushman & Wakefield.
The bulk of this GLV consisted of fresh space take-up with a share of 83%, followed by pre-commitments that acquired 11%. Interestingly, the flex space sector was the biggest consumer of space in the fourth quarter with a 24% share, pipping the usually dominant IT-BPM sector, which had a 23% share in leasing.
Delhi-NCR also received an influx of approximately 2.9 msf in the quarter, taking the total annual launches for 2023 to 4.9 msf. Owing to heavy supply entering the city in Q4, which was nearly 1.2X higher than the average of the past 6 quarters supply, the vacancy rate has increased slightly by 50 basis points on a q-o-q basis.
There is visibility of over 19 msf of supply coming up from 2024 until 2026, with nearly 44% of that in prime submarkets of Gurgaon and Noida. This is likely to push the vacancy rate higher, though strong demand is anticipated to act as a counterforce to some extent.
