While smart cities are still in the pipe, IT majors have already started housing their branches in India’s first such city in Gujarat -- Gujarat International Finance Tec-city (GIFT City).
Computer hardware and database major Oracle has occupied over 105,442 square feet of office space in GIFT City and plans to shift some of its existing manpower from across India and hire fresh employees to build its operations in this city.
Jones Lang LaSalle (JLL), the real estate consultancy firm that facilitated the deal for Oracle, said that this it is one of the largest ever office transactions in the city for any information technology (IT) multinational.
It is also understood that many other IT majors such as TCS, Infosys and Cisco are likely to pick up space in the city soon.
“Just five years ago, Ahmedabad was not even present on the evaluation map of the large occupiers; today, the scenario has changed drastically. There are many IT companies looking to start up operations in Gujarat,” Jigar Mota of JLL India told HT.
Mota added that the office space demand in this city is growing due to the fact that it is the only city with an International Financial Services Centre in India, setting it apart from the other Smart City projects in India.
According to sources, Oracle is paying rentals below Rs 30 lakh per month for this office space, which is almost 15-20% lower than the prevailing market rentals due to a slowdown in the rental space.
According to global property consultant CBRE, IT is the sector occupying the largest office space across the country.
“With a share of about 36%, IT/ITeS remained the largest occupier of office space across these seven cities,” CBRE said in its latest office space survey.