Google Connect Services extends Hyderabad office lease

Google Connect Services India Pvt Ltd, a subsidiary of the American technology behemoth, has extended its three-year lease on around 6 lakh square feet of office space in Hyderabad.

Google has renewed the lease for this space, which houses its technology backend offices, till October 2026, with a 15% escalation to existing rentals every three years, as mentioned by PropStack, a data analytics company.

The property is located in Meenakshi Technova and is spread over 10 floors.

"Google will pay a rent of over Rs 37 crore from October this year until October 2025," according to the registered lease deed.

"This transaction is yet another indicator of how large technology companies like Google are implementing their cloud strategy in India. While most companies are focused on cloud computing, there are very few cloud-native companies. With these expansions, customers will experience an enhanced level of service from Google," said Raja Seetharaman, co-founder of Propstack.

Google did not respond to an email sent by ET until press time.

Earlier this year, the California-headquartered company agreed with Bagmane Developers to lease 1.3 million square feet of office space in Bangalore, in one of the largest office lease transactions in the country since the pandemic outbreak.

Since 2020, the technology company has taken over 2.8 million square feet of space in India, including flexible office space in Gurgaon.

Currently, Google has four offices in India, including its country headquarters in Hyderabad.

The country's office market will see robust absorption in the new year as major IT companies continue to resume offline work.

The demand for flexible workspace among large enterprise clients as well as start-ups is expected to rise substantially in the coming year.

Office space absorption across seven major cities of the country was recorded at 13.1 million sqft during Q3 2022, registering a growth of 24% when compared with the same period last year, said Vestian, a property consultancy firm.

Amongst the seven cities, Bengaluru continued to lead the way with a 38% share of the total absorption during Q3 2022, followed by the NCR and Mumbai, accounting for 27% and 14% shares, respectively.