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TCS leases four lakh sq ft office space in Noida 

Tata Consultancy Services (TCS), the largest IT company in India, has instructed its employees to return to the office. In one of the largest office space deals in Delhi-NCR, TCS has leased 400,000 sq ft in Noida. 

The new office space is 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 spans 2 million sq ft, and TCS has acquired space in the final building of the project. Genpact and Celebal Technologies were earlier tenants in the same complex.

Delhi-NCR witnessed a gross leasing volume (GLV) of 3.7 million sq ft in October- December, the highest in 2023. This marked a 10% increase on a quarter-on-quarter basis, almost matching the robust volumes seen in the same quarter last year, according to Cushman & Wakefield.

Of this GLV, 83% comprised fresh space take-up, with pre-commitments making up 11%. Notably, the flex space sector emerged as the largest consumer of space in the fourth quarter, securing a 24% share and surpassing the typically dominant IT-BPM sector, which held a 23% share in leasing.

In the last quarter, Delhi-NCR experienced an addition of approximately 2.9 million sq ft, contributing to the total annual launches for 2023, reaching 4.9 million sq ft. With a significant surge in supply during Q4, almost 1.2 times higher than the average of the past six quarters, the vacancy rate has marginally increased by 50 basis points on a quarter-on-quarter basis.

The forecast indicates the emergence of over 19 million sq ft of supply between 2024 and 2026, with nearly 44% concentrated in the prime submarkets of Gurgaon and Noida. This is expected to result in a higher vacancy rate, although substantial demand is anticipated to act as a mitigating factor to some extent.

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