Tata Consultancy Services (TCS) has finalized one of the largest commercial real estate deals of the year in Bengaluru, leasing 1.75 million square feet of office space at Sattva Knowledge Point, Yeshwanthpur. The agreement underscores the IT giant’s ongoing expansion and consolidation strategy in India’s technology hub.
Details of the Bengaluru Lease
According to data from real-estate analytics firm Propstack, TCS has entered into a lease agreement with Darshita Southern India Happy Homes Pvt. Ltd., covering two towers within the Sattva Knowledge Point campus.
Under the terms of the lease:
- Monthly Rent: ₹15.37 crore
- Rental Rate: ₹87.73 per sq. ft.
- Tenure: 5 years
- Security Deposit: ₹25 crore
- Escalation Clause: 14% increase every 3 years
- Renewal Option: Additional 5-year extension available
The occupancy certificate for the property was obtained on April 8, 2025, and TCS will occupy Tower A (3 basements + ground + 10 floors) and Tower B (2 basements + ground + 12 floors) within the campus.
The lease covers office and technology space, designed to accommodate thousands of employees, aligning with TCS’s focus on building integrated, large-scale delivery hubs across India.
Consolidation of Operations in Bengaluru
This latest deal follows TCS’s recent 15-year lease of 1.4 million sq. ft. at Neeladri Road, Electronic City, where the IT major pays a monthly rent of ₹9.31 crore with a 12% rental escalation clause. That agreement alone is estimated to cost the company around ₹2,130 crore over its full term.
Together, the two Bengaluru leases reinforce TCS’s long-term commitment to the city — home to several of its key technology centers, innovation labs, and client delivery units. The move is part of the company’s strategy to consolidate multiple smaller offices into campus-style facilities that enhance collaboration, infrastructure, and sustainability.
Industry experts note that large tech firms like TCS increasingly prefer self-contained campuses that allow for seamless expansion, flexible layouts, and optimized energy efficiency.
Why Yeshwanthpur?
Yeshwanthpur, located in North Bengaluru, has emerged as a new hotspot for IT and business operations, thanks to its strong connectivity and infrastructure upgrades. The area’s proximity to the Outer Ring Road, Peenya Industrial Hub, and the Kempegowda International Airport has attracted major global companies seeking alternatives to the crowded Whitefield and Electronic City corridors.
Developments like Sattva Knowledge Point offer Grade A office spaces, modern amenities, and sustainability certifications, making them ideal for large-scale tenants like TCS.
Real estate analysts say that this lease reflects the growing demand for premium office properties outside traditional tech corridors, driven by the city’s expanding metro network and infrastructural development.
Part of a Broader Expansion Trend
The TCS-Yeshwanthpur deal is one of several major office space transactions in Bengaluru in 2025, signaling renewed confidence in India’s commercial real estate market.
Here’s a look at other high-profile leases this year:
- Amazon Development Centre India & Amazon Seller Services
- Location: North Bengaluru
- Area: Over 1 million sq. ft.
- Monthly Rent: ₹6.1 crore
- Signed: June 2025
- Apple India
- Location: Central Bengaluru
- Area: 2.7 lakh sq. ft.
- Lease Term: 10 years
- Starting Rent: ₹6.3 crore per month
- Total Estimated Cost: ₹1,000 crore (including rent, parking, and maintenance)
- BlackRock
- Location: KNG Tower 1, Ashok Nagar
- Area: 1.43 lakh sq. ft.
- Lease Term: 10 years
- Deal Value: ₹410 crore
These transactions reflect robust leasing momentum driven by global technology firms, financial institutions, and service companies continuing to expand their operations in India despite global headwinds.
TCS’s Real Estate and Growth Strategy
With a global workforce exceeding 600,000 employees, TCS has been expanding its physical footprint strategically across India’s major metros.
The company’s real estate approach centers on:
- Consolidation of smaller offices into integrated campuses.
- Long-term leasing to ensure operational stability.
- Focus on sustainability and modern workplace design.
- Expansion in Tier-1 and emerging Tier-2 cities for better resource distribution.
Bengaluru remains a key focus area for TCS, not only for its talent base but also as a global delivery hub for clients in North America and Europe. The new facility at Sattva Knowledge Point is expected to house technology delivery, innovation labs, and client engagement centers once fully operational.
Real Estate Market Outlook in Bengaluru
The city’s commercial real estate market continues to show resilience and strong absorption rates. According to recent market reports, Bengaluru recorded over 10 million sq. ft. of office leasing activity in the first half of 2025 alone, making it one of the top-performing office markets in Asia-Pacific.
The demand is being fueled by:
- Expansion of global capability centers (GCCs).
- Strong domestic IT sector growth.
- Increased focus on flexible, sustainable office solutions.
Despite a global slowdown in technology spending, Indian IT and GCC sectors continue to invest in workspace infrastructure — a sign of long-term confidence in the country’s digital economy.
Key Takeaways
- TCS leases 1.75 million sq. ft. in Yeshwanthpur, Bengaluru.
- Monthly rent: ₹15.37 crore; rate: ₹87.73 per sq. ft.
- Lease term: 5 years, with 14% rent escalation every 3 years.
- Security deposit: ₹25 crore.
- Follows TCS’s earlier 1.4 million sq. ft. lease in Electronic City.
- Part of the company’s broader plan to expand and consolidate its campus presence across Bengaluru.
Final Word
TCS’s latest lease deal adds to Bengaluru’s growing list of mega real estate transactions and reaffirms the city’s position as India’s corporate capital. As large companies continue to expand and modernize their operations, Bengaluru’s commercial property market looks set to remain on a strong growth trajectory well into 2026.
