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Infosys expands in Gujarat's GIFT city: What this office lease means for India's financial hub
Infosys Limited has secured a lease for over 1 lakh sq ft of office space in GIFT City, Gujarat. The move may bolster commercial real estate market in the area
Tech giant Infosys Limited has leased 1.03 lakh sq ft office space in Gujarat's GIFT City, located between Ahmedabad and Gandhinagar, for a monthly rent of ₹57.26 lakh for 10 years, lease documents accessed by Propstack showed. Real estate experts say the deal is expected to boost the commercial real estate market in the area.
Infosys has leased office space in the PRAGYA-2 building, located in Gandhinagar, Gujarat. The development centre spans four contiguous floors (14 to 17) and is designed to accommodate up to 1,000 employees. Real estate experts say this move marks a significant expansion of the IT major’s footprint in India’s only operational International Financial Services Centre (IFSC).
According to the lease documents, the commercial real estate rental agreement commenced in October 2024 and is valid for 10 years. Infosys is paying ₹55 per sq ft per month on the chargeable area of 1.03 lakh sq ft and ₹108 per sq ft per month on the carpet area, which measures 53,020 sq ft.
The lease for the development centre includes an annual rent escalation of 5%. Infosys has paid a security deposit of ₹3.43 crore to the landlord, Savvy Realty Creators LLP. The agreement also provides for 71 dedicated car parking slots, with the option to lease additional spaces at ₹2,000 per slot per month. The lease carries a lock-in period of three years, documents showed.
The office space was officially inaugurated on June 7. "It will function as a key TechFin hub, delivering advanced digital solutions for global BFSI clients. Its services will span critical domains including digital banking, regulatory affairs, trade finance, capital markets, cards and payments, as well as risk and compliance management," Infosys said in a regulatory filing.
The new development centre was inaugurated by the Chief Minister of Gujarat, Bhupendrabhai Patel, on June 7.
Jayesh Sanghrajka, Infosys's chief financial officer, was quoted as saying, “Setting up our Development Centre in GIFT City is a strategic step aligned with our vision of leading innovation in financial services from within India’s foremost international financial hub. GIFT City offers a robust, future-ready environment that enables digital transformation through cutting-edge technologies such as AI, Gen AI, cloud, and blockchain. This presence not only strengthens our global delivery model but also reinforces our long-term commitment to the region’s economic development and digital evolution.”
Email queries have been sent to Infosys and Savvy Realty Creators. If a response is received, the copy will be updated.
Also Read: GIFT City in Gujarat: Here's what you should know about India’s first IFSC and a global financial hub
GIFT City Gujarat is the country's first financial district
Gujarat International Finance Tec-City, better known as GIFT City, sprawls over 880 acres along the Sabarmati River. The city is structured into two key zones: a Special Economic Zone (SEZ) tailored for export-oriented businesses, and a domestic area designed to support residential and commercial activity. About 30% of the city is currently developed and operational, with another 30% designated for upcoming housing and community spaces.
Future prospects for GIFT City as a tech hub
Real estate experts said that the Special Economic Zone (SEZ) area within GIFT City exhibits negligible vacancy in commercial Grade A assets, indicating high demand.
"The SEZ micro-market demonstrates minimal vacancy levels, recorded at 1.46% and strong annual net absorption of 0.5 million square feet in 2024. While the current supply is tight, new commercial inventory is anticipated by the end of 2025. The rentals for Grade A buildings are on an upward trajectory, reaching north of ₹70 per sq ft per month," Samantak Das, executive director and head of research and REIS, JLL India, told HT.com.
Experts pointed out that the robust commercial ecosystem is further strengthened by the presence of major financial and IT companies, including Infosys, Cognizant, Infineon Technologies, Accenture, Wipro, Bank of America, Morgan Stanley, and JP Morgan.
On the residential front, Das said over 14 million sq ft (about 23%) of the city's total construction allocation is dedicated to residential development and 6 million sq ft (about 10%) to social development.
Also Read: GIFT City liquor permit rules eased; Real estate developers say move to attract investments
Real estate investors can expect 7-8% return on investments in GIFT City: Experts
Real estate experts say investors can expect a return on investment (ROI) in the range of 7% to 8% in Gift City, which is considered healthy given the market conditions and the city’s rapid development trajectory.
"Investors should first understand the distinction between the Domestic Tariff Area (DTA) and the International Financial Services Centre (IFSC), as both zones offer distinct advantages. GIFT City has gained attention on the global stage, drawing interest from international investors due to its phenomenal growth story. Whether investing in residential or commercial assets, GIFT City presents a promising opportunity," Rumit Parikh, senior director of occupier strategy and solutions at Knight Frank India, said.
Additionally, there is no Goods and Services Tax (GST) on services received by an Indian Financial System Code (IFSC). "Similarly, transactions conducted on IFSC exchanges are also exempt from GST. Investors continue to benefit from exemptions on Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), and stamp duty for transactions carried out on IFSC exchanges," Das said.
