Tata Consultancy Services (TCS) has just made headlines with one of Bengaluru’s biggest office deals in recent years. The IT giant signed a massive ₹2,130 crore lease agreement for 1.4 million square feet of office space in Electronic City, showing strong confidence in India’s tech future.
The Big Deal Details
TCS has leased 1.4 million sq ft at Bengaluru’s 360 Business Park, one of the city’s largest office deals. The 15-year lease, valued at Rs 2,130 crore, will be executed in two stages. This works out to a monthly rent of ₹9.31 crore (₹66.5 per sq ft), with 12% escalation every three years, backed by a security deposit of ₹112 crore.
The deal is structured smartly. The agreement begins April 1, 2026, with ground plus seven floors, followed by floors eight to thirteen from August 1, 2026. The tenure is 15 years. This phased approach helps TCS manage its expansion while securing prime office space in India’s Silicon Valley.
Why This Deal Matters
This massive investment shows TCS believes strongly in Bengaluru’s future as a tech hub. To put the numbers in perspective, with that much money, you could buy around 266 helicopters in India, considering the cheapest model costs about Rs. 8 crore each. Instead, TCS chose to invest in its workforce and infrastructure.
The timing is perfect. In the first quarter of 2024, the technology sector was the major driver of office space demand in India. Companies are expanding rapidly, and quality office space is becoming harder to find in prime locations.
Bengaluru’s Office Space Boom
The deal reflects a broader trend in India’s commercial real estate market. With domestic office demand reaching a historical high of 74.7 msf, surpassing the previous record set in 2022, companies are scrambling to secure good office space.
Office leasing by GCCs surged to an impressive 29.2 million sq. ft. in 2024, marking a 29% year-over-year expansion. Bengaluru and Hyderabad stood at the forefront of this growth, solidifying their positions as preeminent destinations for multinational corporations.
TCS’s Expansion Strategy
This isn’t TCS’s only major move recently. In March, TCS leased 630,000 sq ft of office space in Chennai’s Ozone Techno Park for a monthly rent of Rs 2.8 crore. The company is clearly expanding across South India’s major tech cities.
The Electronic City location is strategic. It’s home to many global tech companies and offers excellent connectivity to Bengaluru’s airport and other business districts. For TCS employees, this means better commute options and access to a vibrant tech ecosystem.
Impact on India’s IT Sector
Information Technology held a commanding 43.2% India flexible office market share in 2024, and deals like this reinforce the sector’s dominance. The IT industry continues to drive job creation and economic growth across India.
In 2023, the Indian domestic IT & Business Services market was valued at $14.5 billion and recorded a 6.1% year-over-year (YoY) growth, showing the sector’s resilience even during global economic uncertainty.
What This Means for Investors
For real estate investors and tech stock watchers, this deal signals strong fundamentals. When India’s largest IT company commits ₹2,130 crore for 15 years, it shows confidence in long-term growth prospects.
The deal also highlights Bengaluru’s position as India’s undisputed tech capital. Companies choosing to expand here benefit from a skilled workforce, good infrastructure, and a supportive ecosystem.
Looking Forward
TCS’s massive investment in Bengaluru office space reflects the broader story of India’s IT sector growth. As companies embrace hybrid work models and expand their operations, quality office space in prime locations becomes even more valuable.
This deal will likely encourage other IT companies to secure their own expansion plans in Bengaluru. With limited premium office space available, we may see more large-scale leasing deals in the coming months.
For job seekers in the IT sector, this expansion signals more opportunities ahead. TCS’s new facility will likely house thousands of employees, contributing to Bengaluru’s status as a global technology destination.
