Automobile major Volkswagen Group’s subsidiary Volkswagen Group Technology Solution India has picked up three entire floors of a commercial tower in Pune’s Hinjewadi through a long-term lease of over five years.
The company has leased the space spread over more than 1.23 lakh sq ft in Hudson Block forming part of Embassy Tech Zone in Rajiv Gandhi InfoTech Park in the second phase of Hinjewadi development layout.
Volkswagen Group Technology Solutions India, earlier known as Volkswagen IT Services India, is a global technology hub of Volkswagen Group, the German automobile manufacturer headquartered in Wolfsburg. The company has been operating in India since 2016 with offices in Pune, Bengaluru, and Gurugram with more than 2,600 employees.
As per the agreement, the company will be paying starting rentals of Rs 66.60 lakh per month. The agreement includes a clause to escalate rentals by 15% after 36 months from rent commencement in September 2024. In addition to this, every month the company will also pay Rs 15.20 per sq ft towards maintenance charges and Rs 2,500 for each of 123 car parking slots it will access in the tower.
The company has paid nearly Rs 4 crore towards security deposit of the deal that will have a lock-in period of 36 months, showed the documents accessed through commercial properties marketplace FloorTap.com.
As part of the deal, Volkswagen Group Technology Solution India will get a rent-free fit-out period of a total four months ending in September.
ET’s email query to Volkswagen Group and Embassy Office Parks REIT remained unanswered until the time of going to press.
Despite global economic sluggishness, the Indian office sector has experienced sustained growth in demand, reflecting strong market fundamentals and resilience against global challenges.
The ongoing rapid expansion of Global Capability Centres (GCCs) underscores India’s capacity to streamline processes and foster business innovation. Office space absorption by GCCs in major Indian property markets is anticipated to reach 26 million square feet by 2027, an increase from 19.69 million square feet in 2023, showed a Knight Frank India study.
Transaction activity has climbed by 16% since 2018, with GCCs finalizing 6,667 office leasing deals across eight major cities over the past five years. This upward trend highlights the growing influence of GCCs in driving demand for office spaces, underscoring their pivotal role in the evolution of India’s real estate landscape and business ecosystem.
According to experts, India’s GCCs have evolved beyond traditional roles to become pivotal hubs of global strategy and local ingenuity. As India solidifies its position as a cornerstone of global GCC networks, these centres emerge as unparalleled hubs of creativity and collaboration.
