Tata Consultancy Services (TCS), India's top IT firm, secured 400,000 sq ft office space in Noida, a major move amidst return-to-office trends. Demand for Grade A properties rose with corporate policies shifting. Assotech Business Cresterra project in Noida sees significant development. Despite economic uncertainties, the Delhi-NCR region witnesses increased leasing volume, driven by fresh space uptake. The flex space sector surpassed the IT-BPM sector in space consumption. The region experienced 2.9 million sq. ft. of new space influx, leading to a slight rise in vacancy rates. TCS's move reflected evolving workspace preferences in the corporate world.
Tata Consultancy Services (TCS), a leading IT company in India, has recently secured 400,000 sq. ft. of office space in Noida, marking one of the largest office space transactions in the Delhi-NCR region. The office space is located at Assotech Business Cresterra on the Noida Expressway.
Experts have noted that the return-to-office policies implemented by large corporations are driving this increased demand for premium office spaces. With IT companies traditionally dominating office space needs and many transitioning away from remote work, the demand for Grade A office spaces is expected to rise in the upcoming quarters.
Noida is experiencing a rise in office space demand, positioning itself as a promising hub for companies seeking premium workspace. In the past year, two major companies, HDFC Bank leased 2.17 lakh sq ft for 18 years, for a monthly rent of INR 1.47 crores and Skootr, a co-working space leased over 1 lakh sq ft for INR 420 crore and the company is expecting an annual rent of INR 70 crore.
The rise in demand can be attributed to several factors, including the return-to-office policies implemented by many corporations, particularly in the IT sector. As companies move away from remote work models, the need for high-quality office space is expected to continue growing in the coming quarters.
Despite the economic uncertainties, the Delhi-NCR region witnessed a gross leasing volume (GLV) during the last quarter of 2023. The GLV, primarily driven by fresh space take-ups, saw a 10% increase quarter-on-quarter. Interestingly, the flex space sector emerged as the largest consumer of space in the fourth quarter, surpassing the IT-BPM sector.
Moreover, the region experienced a flow of approximately 2.9 million sq. ft. of new space during the quarter, bringing the total annual launches for 2023 to 4.9 million sq. ft. However, the heavy supply flow led to a slight increase in vacancy rates quarter-on-quarter.
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