Cognizant completes sale of Chennai HQ for $71Mn
CHENNAI, INDIA — Cognizant Technology Solutions has officially sold its landmark India headquarters in Chennai to Bagmane Constructions for ₹612 crore (approximately $71.2 million).
The amount is lower than the estimated sale between ₹750 crore (US$89 million) and ₹800 crore (US$95 million) when the deal was first announced in 2024.
Facilitated by real estate firm JLL, the sale involved a property that has been Cognizant’s operational hub for over two decades.
Located in Thoraipakkam on Chennai’s Old Mahabalipuram Road (OMR), the property spans 5.9 lakh sq. ft. across 13.68 acres. This area forms part of the city’s bustling IT corridor and is marked by rapid commercial growth.
Future plans and real estate dynamics
The newly acquired site is set to be transformed into an expansive office park, potentially developing around 3 million sq. ft. of commercial space.
“This will be one of the largest deals in the Zone 2 region of OMR,” commented Siva Krishnan from JLL.
The real estate dynamics in Chennai show a shifting focus on Zone 2 of OMR, driven by enhanced metro connectivity and limited land availability in Zone 1, traditionally the main hub of IT activity.
The sale is part of Cognizant’s strategic consolidation. The company is transitioning its headquarters operations to the MEPZ campus near Tambaram, streamlining its facilities in Chennai. The former headquarters not only housed the company’s operations in India, but it also held significance as the location where Cognizant remotely triggered the Nasdaq opening bell.
Business impact and market growth
Chennai’s office market is poised for growth, with expected absorption to touch between 8.5 to 9 million sq ft by 2025.
“Post-COVID in 2023, office leasing surged to 11.5 million sq ft. This year, we expect Chennai’s office absorption to reach 8.5 to 9 million sq ft,” Krishnan added.
The city’s commercial real estate market has expanded 75-fold over the last 25 years, today holding a considerable share of India’s overall Global Capability Center (GCC) market, particularly strong in the banking, financial services, and insurance (BFSI) sector.
Cognizant, a Fortune 500 company recognized among the world’s most respected businesses, combines technologies like IoT, AI, and cloud to help clients stay ahead of workforce and market changes.
The company has recently forecasted an annual revenue growth of 3.5% to 6% in constant currency for 2025. Its revenue for 2024 was approximately $20 billion, with projections reaching $20.6 billion for 2025.
From rank #6 last year, Cognizant recently placed 7th in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
