In the bustling city of Mumbai, the landscape of commercial real estate is undergoing a significant transformation, particularly with the rise of GIFT City in Gujarat. Major players in the corporate sector, including Cognizant, Oracle, Tata Electronics, Federal Bank, and IndiGo Airlines, have been aggressively acquiring office space in this burgeoning economic hub. This surge in demand has led to a notable increase in rental prices, with rates climbing nearly 10 percent in the last year alone.
Cognizant has emerged as a leading tenant, leasing over one lakh square feet, while Oracle and Federal Bank have secured approximately 30,000 square feet each. Meanwhile, Tata Electronics and InterGlobe Aviation Financial Services have also made significant moves, with leases of 28,000 square feet and 20,000 square feet, respectively. This trend is indicative of GIFT City's growing allure as a prime location for major corporations seeking strategic advantages.
The dynamics of GIFT City are further enhanced by its unique classification into a Domestic Tariff Area (DTA) and a Special Economic Zone (SEZ). According to real estate consultancy Knight Frank, average monthly rentals in the domestic segment have risen to between ₹95-116 per square foot, while the SEZ has reached ₹126-137 per square foot. These figures, although on the rise, still present a cost-effective alternative compared to Mumbai's Bandra Kurla Complex (BKC), where rentals have soared to ₹450-475 per square foot. This significant cost differential is compelling companies to consider GIFT City as a strategic base of operations.
However, industry experts caution that GIFT City is not a market for quick returns. Anand Pandit, Chairman & Managing Director of Sri Lotus Developers & Realty Ltd, emphasizes the importance of adopting a long-term perspective in this evolving market. He notes that while early leasing momentum is promising, the landscape requires strategic patience for sustainable growth. Developers entering GIFT City must recognize the competitive environment and be prepared for a gradual build-up of market potential. As the infrastructure and ecosystem mature, the opportunities for corporate entities could be substantial.
In summary, GIFT City's office space boom is being fueled by major corporates seeking to capitalize on its cost advantages and strategic location. As real estate developers take a long-term view, the potential for this thriving economic zone continues to grow, promising an exciting future for both businesses and investors alike.
