MNCs preferring in buying office spaces than leasing it
Multi-national firms have invested nearly Rs 2,500 crore in fewer than three years to buy office space in India as against leasing it, property consultant Cushman & Wakefield said. With rising rents in prime markets where MNCs operate, the consultant said that there is cost benefit in the long term in buying office spaces rather taking on lease.
During this period, the total sales value of office space was Rs 5,730 crore, of which MNCs contributed Rs 2,470 crore, it said, adding that MNCs in the BFSI, ITES, and FMCG & Pharma sectors were among the lead commercial office buyers. Among major office deals, the consultant said the Citibank India bought 0.3 million sq ft office space for Rs 1,110 crore in Mumbai and Bayer group purchased 0.16 million sq ft for Rs 130 crore in Mumbai.
GlaxoSmithKline bought office space worth Rs 140 crore in Delhi-NCR and Cognizant acquired office in Hyderabad for Rs 110 crore. The consultant noted that buying office space proves to be cost beneficial in long term as rents have been increasing every year from 2011 to 2013 in most of the prime markets where MNCs have typically leased office spaces.
Source: Zee News
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