The company has leased the space spread over 1.23 lakh square feet in Hudson Block, which is part of Embassy Technology Zone at Rajiv Gandhi InfoTech Park, in the second phase of the Hinjewadi development plan.
Volkswagen Group Technology Solutions India, formerly known as Volkswagen IT Services India, is a global technology hub of the German automotive manufacturer Volkswagen Group headquartered in Wolfsburg. The company has been operating in India since 2016 and has offices in Pune, Bengaluru and Gurugram, with over 2,600 employees.
As per the agreement, the company will pay initial rents of Rs 66.60 lakh per month. The agreement includes a clause to increase the rents by 15% after 36 months from the commencement of the lease in September 2024. In addition to this, every month the company will also pay Rs 15.20 per square foot as maintenance charges and Rs 2,500 for each of the 123 parking spaces it will have access to in the tower.
The company has paid nearly Rs 40 crore as security deposit for the deal that will have a lock-in period of 36 months, documents accessed through commercial property marketplace FloorTap.com showed.
As part of the agreement, Volkswagen Group Technology Solution India will get a rent-free fit-out period of a total of four months ending in September. ET’s email query to Volkswagen Group and Embassy Office Parks REIT remained unanswered till the time of going to press. Despite the global economic sluggishness, India’s office sector has seen sustained demand growth, reflecting strong market fundamentals and resilience in the face of global challenges.
The ongoing rapid expansion of Global Capability Centres (GCCs) underlines India’s ability to streamline processes and foster business innovation. Office space absorption by GCCs in India’s major real estate markets is projected to reach 26 million sq ft by 2027, up from 19.69 million sq ft in 2023, a Knight Frank India study showed.
Transaction activity has increased by 16% since 2018, with GCC countries closing 6,667 office leasing deals across eight major cities in the past five years. This upward trend highlights the growing influence of GCC countries in driving demand for office space, underlining their pivotal role in the evolution of India’s real estate landscape and business ecosystem.
According to experts, India’s GCC countries have evolved beyond their traditional roles to become pivotal hubs of global strategy and local ingenuity. As India consolidates its position as a cornerstone of the GCC’s global networks, these hubs are emerging as unrivalled centres of creativity and collaboration.
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