Demand for commercial office and warehouse space has increased post elections
It is expected that the job market will see a positive surge as IT, consultancy and e-commerce players speculate a boom in the economy which will trigger expansion plans for them. Hence there is a rat race going on amongst these players to lease and buy office space and they are expecting the stable government to announce policy reforms which will give an upward thrust to the GDP.
Top property consultancies in the country sucIt is expected that the job market will see a positive surge as IT, consultancy and e-commerce players speculate a boom in the economy which will trigger expansion plans for them.h as Cushman & Wakefield, CBRE, JLL, Knight Frank and DTZ say they have requests from various corporates to lease about 40 million square feet of space in the top seven cities this year. It is expected that about 350,000 jobs will be created due to the expansion of the industries.
Viral Desai the director of office at Knight Frank mentioned that the demand for commercial spaces had gone down in the last few years in the UPA regime however has picked up the momentum now. He also mentioned that while not much has changed in their businesses so far, with a new government in place, they are preparing for growth. No one wants to miss the bus.
Consulting firm KPMG recently leased over 700,000 square feet of space in Bangalore and the inside sources mentioned that its peers E & Y, Deloitte and PwC are also looking to ramp up. Many of the big Japanese and Korean firms are looking for space; however the growth of the IT industry still is dependent on the decisions from the US. Accenture, for example, is looking for about one million square feet of space in Bangalore to ramp up its IT, ITES and consulting businesses.
The added buying power has given a boost to the e-tailers like Amazon and eBay and they are adding offices and warehouses on hopes of a boom in consumer spending. Bangalore-based RMZ said it has already leased 3.25 million square feet in a business park in the city to corporates such as SAP, Morgan Stanley, ANZ and Honeywell in the last few months. Srinivasan Gopalan the chief operating officer at Mumbai-based developer Wadhwa Group mentioned that the company’s leasing pipeline has doubled since the election results to nearly 400,000 square feet now.
Source- The Economic Times
CII- JLL report, Cushman & Wakefield, Cushman & Wakefield report, Demand for commercial office, JLL report, Knight Frank, Knight Frank India, Knight Frank's report, stable Government
