Infosys Sets the Stage for GIFT City’s Tech and Financial Renaissance

A Strategic Leap for India’s Financial Hub

Infosys Limited, one of India’s largest IT companies, has made a landmark move by leasing over 1 lakh sq ft of Grade A office space in Gujarat’s GIFT City. This development is set to reshape the commercial real estate landscape of India’s only operational International Financial Services Centre (IFSC), signaling a new era of growth and opportunity for both the region and the nation.

A Milestone Lease and Its Impact

Infosys has secured a 10-year lease for 1.03 lakh sq ft in the PRAGYA-2 building, located in Gandhinagar, with a monthly rent of ₹57.26 lakh. The development centre, spanning four contiguous floors (14 to 17), is designed to accommodate up to 1,000 employees working in a hybrid model. This significant expansion underscores Infosys’s commitment to innovation and positions GIFT City as a preferred destination for global technology and financial services.

The lease agreement, which commenced in October 2024, includes an annual rent escalation of 5%. Infosys has paid a security deposit of ₹3.43 crore to landlord Savvy Realty Creators LLP. The deal also provides 71 dedicated car parking slots, with the option to lease additional spaces at ₹2,000 per slot per month, and features a three-year lock-in period.

A TechFin Hub for the Future

The new development centre was officially inaugurated by Gujarat Chief Minister Bhupendrabhai Patel on June 7, 2025. Infosys has positioned this facility as a key TechFin hub, delivering advanced digital solutions for global Banking, Financial Services, and Insurance (BFSI) clients. Its services will span digital banking, regulatory affairs, trade finance, capital markets, cards and payments, and risk and compliance management.

Jayesh Sanghrajka, Chief Financial Officer of Infosys, remarked, “Setting up our Development Centre in GIFT City is a strategic step aligned with our vision of leading innovation in financial services from within India’s foremost international financial hub. GIFT City offers a robust, future-ready environment that enables digital transformation through cutting-edge technologies such as AI, Gen AI, cloud, and blockchain. This presence not only strengthens our global delivery model but also reinforces our long-term commitment to the region’s economic development and digital evolution.”

GIFT City: A Financial and Technological Powerhouse

Located between Ahmedabad and Gandhinagar, GIFT City sprawls over 880 acres along the Sabarmati River. The city is structured into two key zones: a Special Economic Zone (SEZ) for export-oriented businesses, and a domestic area supporting residential and commercial activity. About 30% of the city is currently developed and operational, with another 30% designated for upcoming housing and community spaces.

The SEZ micro-market exhibits negligible vacancy in commercial Grade A assets, with vacancy levels as low as 1.46% and strong annual net absorption of 0.5 million square feet in 2024. New commercial inventory is anticipated by the end of 2025, and rentals for Grade A buildings are on an upward trajectory, reaching north of ₹70 per sq ft per month.

A Magnet for Global Investors

GIFT City’s robust commercial ecosystem is further strengthened by the presence of major financial and IT companies, including:

• Infosys
• Cognizant
• Infineon Technologies
• Accenture
• Wipro
• Bank of America
• Morgan Stanley
• JP Morgan

This concentration of global players has transformed GIFT City into a vibrant hub for innovation and investment.

On the residential front, over 14 million sq ft (about 23%) of the city’s total construction allocation is dedicated to residential development, with 6 million sq ft (about 10%) earmarked for social infrastructure. Real estate experts predict a healthy return on investment (ROI) of 7% to 8% for investors, reflecting the city’s rapid development and strong demand.

Tax and Regulatory Advantages

GIFT City’s appeal is further enhanced by a suite of tax and regulatory incentives. There is no Goods and Services Tax (GST) on services received by an IFSC unit, and transactions conducted on IFSC exchanges are also exempt from GST. Investors continue to benefit from exemptions on Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), and stamp duty for transactions carried out on IFSC exchanges.

A Bright Future Ahead

Infosys’s expansion in GIFT City is more than just a real estate transaction—it is a strategic investment in India’s future as a global financial and technology leader. As GIFT City continues to attract international investors and top-tier companies, it is poised to become a beacon of innovation, collaboration, and economic growth for years to come.