400K square feet at the Vatika building in Gurugram is being leased by Air India

According to three persons with knowledge of the negotiations, Air India is in talks to lease roughly 400,000 square feet of office space at the Vatika building in Gurugram. The former national airline, which is now a part of the Tata Group, has indeed agreed to a letter of intent (LoI) for around 200,000 square feet, with the possibility of expanding that area later, according to their claims. One of them stated that the airline will relocate all offices to this structure. Vistara and AirAsia, two other Tata airlines, may move to the same building in the future.

“When Air India first started searching for a site with Tata Realty, it was with the intention of consolidating, but the building is a SEZ. Now that they’ve made the decision to relocate to this building on the National Highway,” one of the informed parties remarked. With an initial investment of $1,200 crore, the Vatika building in Gurugram development One on One on National Highway 8 is being constructed in two phases and spans 2.2 million square feet.

According to a report by ICICI Securities, the Indian commercial real estate (CRE) office market saw net absorption rise 62% sequentially to 9.6 million square feet in the quarter that ended in June. This was the market’s best quarterly performance since the quarter that ended in December 2019 when 10.7 million square feet of net absorption were recorded.

According to Vibhor Jain, managing director for north India at real estate services provider Cushman & Wakefield, “the majority of the offices leased in the NCR in the April-June quarter seem to be of big size. Additionally, the agreements include the possibility of expanding the space inside the same complex, which confirms that businesses are confident in expanding their office space in the near future.”