The US based multinational company, Adavanced Micro Devices (AMD), have recently been in talks for its massive investment in Bengaluru. The company was founded in 1969 in the Silicon Valley and has since its inception catered to the needs of the booming IT industry. Its recent investment in Bengaluru hence, comes as a welcome news for the Indian technological market. Among the major cities of India, Bengaluru has been the top preference for many MNCs and IT companies from all over the globe.
The city accounts for upto 3.5 million square feet of office spaces leased by domestic and international firms. Between January to March, 2022 as much as 10.8 million square feet of office space has been leased, as reported by Knight Frank. In May, AMD leased 500,000 square feet of office space from Prestige Group. The office space has been leased out at Prestige Technostar, a commercial property of the Prestige Group. As of now the AMD – Prestige deal is one of the largest office deals that has happened in southern India in 2022.
This is surely the beginning of a huge development for the Indian market. Both AMD and Prestige Group is renowned in the semiconductor and real estate market respectively. AMD’s investment will not only boost the overall Indian technological market but create significant amount of jobs in the country.
The AMD office is to be operational from the end of this year. Prestige Group has leased out the space for 10 years to the semiconductor company. According to sources, AMD will have to pay Rs 54 per square feet of the office space. “This is a single tenant deal and has been registered”, said a reliable source aware of the deal. Propstack recently shared a lease deed that showed AMD’s annual rent to the Prestige Group. The semiconductor company will annually pay Rs 31.5 crore for the leashed office space.
It is speculated that AMD has taken the space for expanding its operations in the prime city. In recent years, the enterprise has been engaged in various ongoing and upcoming projects in Pune, Hyderabad and Bengaluru. This encompasses an area of 43 million square feet. AMD’s investment in these major cities reflects the company’s interest in cementing its commercial portfolio in the Indian market. India has become an avenue for investment and earning of significant revenue. There has been a hike in rentals of office spaces in the country. Prestige City Sarjapur, located in bangalore with plots, villas and apartments.
As we shift from a Work From Home culture (WFH) to the Work in Office culture, companies have been investing in office spaces again. Recently Prestige Group has leased over 1.5 million square feet of office space to companies like HP and Byjus. As said by Shishir Baijal (Chairman and MD of Knight Frank, India), “We expect the office segment to return to its pre-Covid momentum in the next few quarters”.