‘Office space requirement to increase by 7% in 2014′
A global real estate consultant says that the Office space requirement is likely to increase by 7 percent during this year to 29 million sq ft in India’s 7 major cities as corporates are looking at expanding their business. The demand of office space was 27 million sq ft last year in the seven cities like Delhi-NCR, Mumbai, Bengaluru, Chennai, Pune, Hyderabad and Kolkata.
In a report on the demand of office spaces, the DTZ concluded that office rentals would remain constant in most markets in the first half of 2014 and rents would start rising from the second half.
The DTZ also says that most of the corporates are expected to plan for their expansion in next few months.
The report also concluded that the economic condition is likely to improve in 2014. This in turn will eventually feed through to generate higher demand for the real estate sector. The requirement of office space is likely to reach 28.9 million sq ft in 2014, a growth of 7 per cent.
The demand of office space would be led by the IT/ITeS sector (40 per cent) followed by manufacturing and BFSI sectors. The Bangalore city would continue to be the largest contributor in office space. There was a common hope that demand of office space will gain momentum in future.
The report also says that the Occupiers expect economic growth to recover after the parliamentary elections.
The report also says that the respondents expect rents to remain constant in the first half of year. But the large number of respondents agrees that rents will record a little increase in the next 12 months.
Mr.Rohit Kumar, DTZ India Research Head also says that the increasing number of occupiers insisted on strict adherence to legal, safety and environment norms of office buildings. He further added that this increase will have a positive impact on the quality of buildings in future.
Source: The Times of India
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