Baidu (BIDU) has signed a contract with the administrative department of the Beijing Shangdi Information Industrial Park to purchase an undisclosed amount of land for CNY92.4 million to house the company's new headquarters.

Local media report that the Beijing Municipal Government, Haidian District government and Zhongguancun Administration Commission all hold high expectations over the entry of Baidu into the area which has already hosted such high-tech enterprises as Lenovo, Huawei and Founder.

Robin Li, CEO of Baidu, said that the company will build a central Baidu Building to combine work, leisure and fitness for its employees. Baidu hopes to create an atmosphere that will help develop the creative juices of its employees.

With Baidu's entry, the real estate prices in the surrounding areas of Zhongguancun are expected to rise.