C&W: Multi-nationals buying office space in India rather than leasing it
In a recent report, property consultant Cushman & Wakefield (C&W) has revealed that, in the last three years or so, a total investment of approximately Rs. 2,500 crore has been made by multi-national firms to purchase office space in India rather than lease it.
According to C&W, the apparent reason behind the decision of an increasing number of multi-national forms to buy office space in India is that rents for office space have been witnessing an exorbitant rise in prime markets which mostly comprise the area of operation of multi-nationals.
As such, going by the C&W report, the purchase of office space – rather than taking it on lease – in India’s prime markets results in a cost benefit for the multi-national firms in the long term.
The statistics revealed in the C&W report show that foreign multi-national companies’ contribution to the total sales value of commercial offices during the period between January 2012 and March 2014 was as much as 43 percent.
Noting that “multi-national companies are increasingly investing through purchasing offices in India,” C&W said in its recent report: “There is a seismic shift in the traditional approach of leasing space that such companies have had for years while considering overseas investment.”
Source – The Hindu Business Line
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