Tata Consultancy Services (TCS) has signed a significant 10-year lease for 630,000 sq. ft. of office space at Ozone Techno Park in Chennai’s Navalur area. This deal, despite the current slowdown in demand for IT office space, signals TCS’s commitment to growth and presence in Chennai’s expanding IT corridor.
Lease Details and Market Context
TCS leased the 630,000 sq. ft. office space from Platinum Holdings Pvt. Ltd. in Chennai’s Navalur suburb, a key IT hub along Old Mahabalipuram Road (OMR). The tenancy agreement includes a monthly rent of ₹2.8 crore with a 12% rent escalation every three years. TCS paid a deposit of ₹25.5 crore and locked the lease for a decade. This substantial lease is one of the largest office space deals in Chennai for 2025 amid overall slow office space take-up in the Indian IT sector due to global economic uncertainties and shifts to hybrid work models.
TCS’s Growth Strategy and Chennai’s Market Outlook
This lease underlines TCS’s long-term vision to expand its workforce and service capabilities in Chennai, beyond the challenges faced by the real estate market. According to Raja Seetharaman, co-founder of real estate data firm Propstack, Indian IT firms like TCS continue to invest in large office spaces reflecting diverse work strategies and regional preferences despite economic slowdowns. The Navalur area benefits from proximity to other IT parks and upcoming infrastructure improvements, such as the Chennai Metro Phase 2. In contrast to other IT companies reducing real estate footprints, TCS is making a confident bet on Chennai’s IT corridor as a major growth centre.
Additional TCS Real Estate Moves
Besides this Chennai lease, TCS has also made significant real estate investments, including leasing over 1 million sq. ft. in Hyderabad for 15 years and purchasing land for a new tech campus in Raheja Industrial Township for ₹2,250 crore. The company has also opened advanced innovation centres, such as a Google Cloud Gemini Experience Centre at its Chennai lab, emphasising its focus beyond IT services to technology innovation.
The FlexInsights Take
TCS’s large-scale lease in Chennai’s Ozone Techno Park bucks the trend of cautious real estate moves in India’s IT sector. It showcases strong corporate confidence in long-term geographic expansion, regional demand, and hybrid office models. This deal not only boosts Chennai’s position as a key IT hub but also supports local economic growth. While some IT firms downsize or exit real estate to optimise costs, TCS’s commitment signals a recovery phase and evolving workspace strategies prioritising modern office environments alongside flexible working. Chennai’s South corridor looks set to gain more prominence, making it a focal point for IT sector real estate and innovation growth.
