TCS Leases Big Office Space in Chennai: What It Means for the City's Real Estate
Tata Consultancy Services (TCS), one of India's biggest IT companies, has leased a massive 6.3 lakh square feet of office space in Chennai. The new office is located in Ozone Techno Park, in the fast-growing area of Navalur, along the IT corridor in South Chennai.
Even though many IT companies are being careful about spending on office spaces in 2025, this move shows that TCS is still betting big on Chennai. It also signals that areas like Pallavaram and Pallavaram-Thuraipakkam Road, where new projects like Prestige Pallava Gardens are coming up, are gaining value fast.
- Location: Ozone Techno Park, Navalur (Chennai's IT corridor)
- Size: 6.3 lakh sq. ft. (about 630,000 sq. ft.) across 7 floors
- Monthly Rent: ₹2.8 crore
- Lease Term: 10 years (locked in until March 2028)
- Rent Increase: 12% every 3 years
- Security Deposit: ₹25.5 crore
- Start Date: March 15, 2025
- Parking Provided: 631 slots
Even with slow demand in the IT market, this is one of the biggest office space deals in Chennai this year.
Many IT companies are reducing office space because of global issues and more people working from home. But TCS is doing something different. It continues to grow in cities like Hyderabad and Chennai. Experts say this is because:
- Some teams are back to working from the office.
- Big companies want offices in locations with good talent and strong infrastructure.
- Chennai is becoming a key tech hub again.
Raja Seetharaman, co-founder of Propstack (a real estate data firm), said that companies like TCS are still choosing big spaces based on their long-term strategies, not just current market trends.
Despite slowdowns in some cities, Chennai is showing strong demand for office space. In the first three months of 2025 alone:
- Chennai's office leasing grew by 93% compared to last year.
- Global Capability Centers (GCCs) — which are offices of international companies based in India — made up 45% of all office leases.
- Rents in Chennai's top locations went up by 9% in just one year.
TCS's decision to lease such a large space fits right into this growth story.
TCS isn't the only company making real estate moves in Chennai:
- Walmart took 4.6 lakh sq. ft. in International Tech Park for ₹3.26 crore per month (Jan 2025).
- LTI Mindtree leased 5.85 lakh sq. ft. in Manapakkam for ₹3.98 crore/month (Aug 2024).
- Cognizant sold a 5.9 lakh sq. ft. campus in Thoraipakkam for ₹612 crore (Mar 2025).
While others are selling or downsizing, TCS is still expanding.
Navalur sits on Old Mahabalipuram Road (OMR), the heart of Chennai's tech zone. It's close to other IT parks, good housing, schools, and shopping. Plus, the Chennai Metro Phase 2 is bringing new stations to this area soon.
Just 20–30 minutes from Navalur, Pallavaram is also booming. Projects like Prestige Pallava Gardens on the Pallavaram-Thuraipakkam Road are getting attention from professionals who work in OMR. With better roads, metro access, and affordable housing, South Chennai is becoming a top choice for both companies and homebuyers.
This lease isn't the only big move by TCS. In March 2025, the company bought 26 acres of land in Raheja Industrial Township for ₹2,250 crore. They plan to build a new tech campus there, with advanced facilities and delivery centers.
In April 2025, TCS also opened a Google Cloud Gemini Experience Center at its Chennai lab. This space helps businesses explore AI and retail solutions — showing how Chennai is now a place for not just IT services, but also high-end innovation.
Even though many tech firms are holding back, TCS is clearly confident about the future. Its huge lease at Ozone Techno Park proves that Chennai — especially South Chennai — is still a major player in India's IT growth story.
As areas like Pallavaram, OMR, and Navalur grow, residential projects such as Prestige Pallava Gardens are also seeing rising demand. With big companies setting up shop and city infrastructure improving fast, Chennai looks ready for its next phase of development — and TCS is leading the way.
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