Airbus in India: Airbus, the world leader in aerospace and defense, has signed a 10-year lease for over 650,000 sq ft in Bengaluru’s Whitefield to set up its Global Capability Centre (GCC). The deal, valued at ₹500 crore, secures an entire building in Titanium Tech Park. This center will focus on innovation and technological advancements to support Airbus’s global operations.
The agreement includes a clause allowing Airbus to scale up by leasing an additional 150,000 sq ft after a year, increasing the total area to 800,000 sq ft. Airbus also has the option to extend the lease for an additional five years, potentially making it a 15-year arrangement.
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“The lease deed has been signed, and fit-out work is set to begin shortly. Total rental costs will rise once the additional space is formalised,” a source stated according to ManufacturingTodayindia.
Fit-out work is expected to begin soon, with costs rising when the extra space is formalized. Additionally, the rental agreement includes 15% escalation every three years.
Airbus has a strong presence in India, collaborating with Tata Advanced Systems and HAL in aerospace manufacturing. The new GCC is set to bolster its operations in commercial aviation, defense, and engineering across the country.
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India’s emergence as a major civil aviation hub has spurred an important aircraft order, with IndiGo and Air India collectively ordering over 1,000 aircraft from Airbus. The company is also advancing its defense projects, including the C295 aircraft program, with the first locally produced C295 scheduled to roll out from Vadodara by 2026.
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The Indian office property market remains robust, driven by demand for global capability centres (GCCs) and flexible workspaces. To further boost GCCs, the government is crafting policies to incentivize their expansion, particularly into smaller towns. Initiatives under consideration include creating dedicated office zones to support large-scale operations.
As global companies continue to expand their footprint and the Indian economy stays resilient, growth in office space demand is set to remain strong.
