Major Leap for GIFT City: Infosys Signs 10-Year Lease for 1.03 Lakh Sq Ft Office Space
In a significant move that signals the growing importance of Gujarat’s GIFT City as a major financial and IT hub, Infosys Limited has leased over 1 lakh square feet of office space in the city’s Gandhinagar zone. The deal, which involves a 10-year lease agreement, is expected to bolster the commercial real estate market in GIFT City and reinforce its position as India’s premier international financial center (IFSC).
According to lease documents accessed by Propstack, Infosys has leased 1.03 lakh sq ft of office space in the PRAGYA-2 building, situated within GIFT City’s Gandhinagar campus. The lease agreement, which commenced in October 2024, stipulates a monthly rent of approximately ₹57.26 lakh, translating to roughly ₹55 per sq ft on the chargeable area of 1.03 lakh sq ft. The lease also includes a 5% annual rent escalation clause, reflecting a progressive approach aligned with market trends. The agreement is valid for a decade, with a lock-in period of three years, and requires Infosys to pay a security deposit of ₹3.43 crore to the landlord, Savvy Realty Creators LLP.
This move marks a significant expansion of Infosys’s footprint within India’s only fully operational IFSC, a dedicated financial district that aims to position India as a global financial hub. The company’s new development center spans four contiguous floors (floors 14 to 17) and is designed to accommodate up to 1,000 employees. Infosys announced that the facility would serve as a key TechFin hub, delivering advanced digital solutions for global BFSI (Banking, Financial Services, and Insurance) clients. The center’s services will encompass critical areas such as digital banking, regulatory compliance, trade finance, capital markets, payments, and risk management.
The new office was officially opened with Gujarat’s Chief Minister Bhupendrabhai Patel attending the event. Infosys stated in a regulatory filing that this development center will strengthen its position in financial technology and digital innovation. It will focus on advanced technologies such as artificial intelligence (AI), generative AI, cloud computing, and blockchain.
Jayesh Sanghrajka, Infosys’s Chief Financial Officer expressed confidence in GIFT City’s strategic importance, highlighting that establishing their Development Centre there aligns with their vision of leading innovation in financial services from India’s premier international financial hub. They emphasized that GIFT City provides a robust, future-ready environment conducive to digital transformation and supports their long-term commitment to regional economic growth.
GIFT City, located between Ahmedabad and Gandhinagar along the Sabarmati River, is India's first integrated financial district. Spanning approximately 880 acres, the city is structured into two primary zones: a Special Economic Zone (SEZ) for export-oriented businesses and a domestic zone that supports residential and commercial development. While only about 30% of GIFT City is currently developed and operational, efforts are underway to accelerate growth, with the remaining land earmarked for future development.
The SEZ area within GIFT City has garnered particular attention for its high demand and low vacancy rates. Industry experts note that vacancy levels in Grade A commercial assets in the SEZ are as low as 1.46%, indicating a highly active and competitive market. According to Samantak Das, Executive Director and Head of Research and REIS at JLL India, the SEZ micro-market demonstrates minimal vacancy levels and strong net absorption of about 0.5 million sq ft in 2024. While supply remains tight, new commercial inventory is expected by the end of 2025, with rentals for Grade A buildings rising beyond ₹70 per sq ft per month.
The commercial ecosystem in GIFT City is further bolstered by the presence of major multinational corporations and financial institutions including Cognizant, Infineon Technologies, Accenture, Wipro, Bank of America, Morgan Stanley, and JP Morgan. These companies are establishing operations in the city, which is designed to be a global hub for finance, technology, and innovation.
On the residential front, GIFT City is witnessing rapid development, with over 14 million sq ft (around 23%) of its total construction dedicated to residential projects. An additional 6 million sq ft (roughly 10%) is allocated for social infrastructure, including schools, healthcare facilities, and community spaces. Real estate experts suggest that the city presents a promising investment opportunity, with expected returns on investment (ROI) around 7-8%, making it attractive for both domestic and international investors.
An unique advantage of GIFT City is the benefit of various tax exemptions. Transactions conducted within the IFSC are exempt from Goods and Services Tax (GST), Securities Transaction Tax (STT), and Commodities Transaction Tax (CTT). Stamp duties are also waived for transactions on IFSC exchanges, providing a favorable environment for financial activities and investments.
Real estate experts emphasize that GIFT City's growth is poised to continue accelerating. With strong demand from global financial and IT firms, minimal vacancy rates in commercial spaces, and comprehensive infrastructure, the city is well-positioned to become one of the sorted international financial hub. The ongoing development of residential and social infrastructure further enhances its attractiveness for long-term investments.
Image source- glassdoor.co.in
