MUMBAI | BENGALURU: Global aerospace and defence industry major Airbus has picked up over 650,000 sq ft office space in a commercial tower in Bengaluru’s Whitefield through a long-term lease of 10 years to set up its global capability centre (GCC), supporting innovation and technology development-related strategic initiatives worldwide, said persons with direct knowledge of the development.
The European multinational company will be paying rentals of over Rs 500 crore for this new office space in an entire building of Titanium Tech Park through the lease term.
The deal has provision for future scalability to accommodate growth with an additional 150,000 sq ft that can be exercised after a year, taking the total space to 800,000 sq ft. The clause for lease tenure also includes an option to extend the same by an additional five years, making it a 15-year deal.
“The lease deed has been signed. The total rental outgo will increase once the additional space take up is finalised. The fit-out work will commence in the next few weeks,” said one of the persons mentioned above.
The lease agreement also includes a clause to escalate the rentals by 15% every three years.
Airbus has a strong and expanding presence in India, with significant involvement in commercial aviation, defence and aerospace manufacturing. The company operates an engineering centre in Bengaluru and has partnered with Indian suppliers like Tata Advanced Systems and HAL for components and aircraft production.
India is the world’s fastest growing civil aviation market and airlines such as IndiGo and Air India have ordered more than 1,000 aircraft from Airbus. It has also collaborated on defence projects like the C295 aircraft and the first ‘Make in India’ C295 will roll out of its Vadodara facility in September 2026.
ET’s separate email queries to Airbus and the project developer Goyal & Co remained unanswered until the time of going to press. Transaction advisor JLL India declined to comment.
India’s office property market is experiencing a record-breaking wave of net absorption, reflecting robust demand led by GCCs and flexible spaces amid sustained expansion by global and domestic corporates.
The government is already working on developing a comprehensive policy framework to introduce new incentives for GCCs. These incentives will complement state-level policies and encourage GCCs to expand into smaller towns and cities. The plan includes creating dedicated office zones in areas with space constraints to enable large-scale operations.
Continued interest from various sectors, including technology and manufacturing, positions the office market for sustained growth and development in the coming years.
As India remains at the forefront of global firms’ real estate plans and the domestic economy stays resilient, occupier activity is on an accelerated growth curve with an anticipated longer runway going forward as well.
Source Homevior.in
