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Gaming Materials & Technology Company rich Candor Techspace has leased 128,000 sq ft of office space in the Special Economic Zone (SEZ) Brookfield Properties In Noidasaid three people with knowledge of the deal.
The leasing out comes at a time when companies are avoiding SEZs and are waiting for the Development (Enterprises and Services) Hubs Bill, 2022, which is meant to replace SEZs. special economic zone act,
Samsung leased 370,000 square feet of office space Candor Techspace SEZWhich is part of the Brookfield REIT portfolio.
“Companies are looking for quality location and SEZ is not a hindrance for them. However, the new act will help the developer to reduce the vacancies. The demand for office space in Noida is on the rise and the supply pipeline of Grade A buildings is also strong,” said Vibhor Jain, Managing Director, North India, Cushman & Wakefield.
Savills India, which facilitated the transaction, declined to comment on the deal. Aristocrat did not respond to ET’s emailed queries, while Brookfield also declined to comment.
Recently leading developers like DLF And Tata Realty spoke on the delay of the new bill, which will replace the SEZ Act.
Shriram Khattar, managing director of DLF’s rental business, had said during the company’s third quarter earnings call, “There are vacancies in SEZs either due to amendments in the Act, which is taking a little longer than we expected.”
Sanjay Dutt, managing director of Tata Realty & Infrastructure Ltd, had said that last year the minister had announced the SEZ Amendment Act to allow domestic companies to operate in IT SEZs, which was missing this year.
According to industry estimates, around 20,000 hectares of SEZ land and 100 million square feet of built-up area are currently vacant.
MNCs believe that there is no major financial advantage to operating in SEZs after the sunset clause, although compliance requirements remain.
IT SEZs in India are mainly occupied by capacity and service centers of IT service companies and multinationals. SEZs account for over 30% of India’s exports and generate 2.3 million jobs. IT SEZs are a major contributor to SEZ exports and have generated $66 billion in 2020-21 for IT and related services, according to industry estimates.
demand for commercial According to Savills India, space in the Delhi-National Capital Region (NCR) is estimated to reach around 11 million sq ft in 2023, driven by the return of working professionals to offices.
The IT-BPM sector is expected to drive the city’s commercial market this year as well, while the second largest contribution to the leasing activity is expected to come from flexible workspaces.
The overall vacancy level in Delhi-NCR declined to 21.9% in 2022 from 23% in 2021, as leasing activity outpaced new completions during the year.
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