DevX's Rs 850 Crore Deal Redefines India's Office Market

Introduction

Enterprise-focused managed office provider Dev Accelerator (DevX) has finalized the country's largest coworking transaction by securing an entire 27-storey commercial tower in Ahmedabad. The deal, covering 8 lakh sq ft, is valued at over Rs 850 crore in total rentals and signals a significant shift in India's commercial real estate landscape. The transaction's scale is particularly noteworthy as it takes place in a Tier-II city, challenging the dominance of traditional office hubs like Mumbai, Bengaluru, and Delhi-NCR.

Details of the Landmark Transaction

The project is a massive 8 lakh sq ft commercial office tower located on the premium Ambli-Bopal Road micro-market in Ahmedabad. Currently under construction, the Grade A+ green building is expected to be completed within the next three years. DevX plans to invest approximately Rs 100 crore over the next four years to develop the facility, which will add around 8,500 seats to the city's office ecosystem. Upon completion, the campus is projected to generate over Rs 120 crore in annual revenue, catering primarily to Global Capability Centres (GCCs) and large enterprise occupiers.

An Innovative Development Management Model

Instead of a conventional lease, the transaction is structured as a long-term Development Management (DM) agreement. Under this 15-year arrangement, DevX will manage the asset's complete lifecycle, from planning and development to leasing and operations, in partnership with the landowner. The rental agreement is set to begin at around Rs 4 crore per month and includes a 5% annual escalation clause. DevX has committed a security deposit of approximately Rs 25 crore. This model provides DevX with a four-year lock-in period, while the developer is locked in for the entire 15-year term.

The 'Landowner First' National Strategy

This Ahmedabad deal is a cornerstone of DevX's broader national expansion strategy, built on its innovative 'Landowner First' DM model. This framework allows landowners to retain 100% ownership and control of their assets, a significant departure from traditional joint development agreements. By eliminating land transfer costs and reducing stamp duty, the model offers property owners returns that are 20-30% higher than conventional approaches. This strategy has been pivotal in DevX's expansion across metros like Mumbai and Hyderabad and high-growth Tier-II cities such as Jaipur, Udaipur, Indore, and Surat.

Market Impact and the Rise of Tier-II Cities

The transaction underscores a fundamental shift in India's commercial real estate dynamics. It reflects the growing appeal of Tier-II cities for large-scale corporate operations. As major metro markets become saturated, companies and GCCs are increasingly exploring alternatives that offer a strong talent base, robust infrastructure, and significant cost advantages. According to Umesh Uttamchandani, Managing Director of DevX, this campus is positioned to play a defining role in Ahmedabad's economic trajectory as the city prepares for large-scale global events.

Key Transaction Data

DevX's Strong Operational Footprint

DevX's aggressive expansion is backed by solid financial and operational performance. The company reported a consolidated revenue of Rs 166.7 crore for the first nine months of FY26, a 53% year-on-year increase. For the full fiscal year FY25, its revenue stood at Rs 178 crore. The company currently operates 28 centers across 12 cities, managing 8.6 lakh sq. ft. of space with an occupancy rate of 88.4%. Its client base is heavily skewed towards enterprises, which account for 70% of its revenue, and it boasts a high seat retention rate of 98.7%.

Leadership Perspective

Umesh Uttamchandani emphasized the strategic importance of the DM model. He stated, "Our Development Management model bridges the gap between non-institutional landowners and the demand for institutional-grade office assets. By aligning interests through a success-linked fee structure, we deliver premium, ready-to-move workspaces while enabling landowners to unlock full value without diluting ownership." This collaborative approach allows DevX to scale rapidly while meeting the demand from enterprise clients for high-quality, flexible office solutions.

Conclusion and Future Outlook

The record-breaking Ahmedabad deal solidifies DevX's position as a key player in India's evolving office market. It not only highlights the company's innovative, asset-light strategy but also validates the increasing viability of Tier-II cities as major commercial hubs. With an additional 7.2 lakh sq. ft. already secured in signed agreements, DevX is well-positioned to continue its growth trajectory, shaping the future of managed workspaces in India by creating long-term value for both landowners and corporate occupiers.