The scenario of commercial real estate in India is experiencing continuous change, always for the better. Markets that were just confined to local streets started growing into multi-storey office buildings and planned economic zones. And now this is what defines the skyline of Indian cities. The government is also taking ambitious steps to fuel commercial realty in India. A recent survey conducted by the CBRE, an American commercial real estate company, suggests that the corporate real estate occupiers are aggressively confident about expanding their offices across Indian cities.
As reported by the Economic Times, these corporate players bet big on their India expansion plan, especially for the next two years. They are positive about India’s business environment and are also looking forward to increase the employee headcount by 5-20 percent. The survey was conducted on the representatives of typical Indian occupiers across different industries to keep it uniform.
The corporate occupiers choose the office spaces based on three main objectives:
Infrastructure – Physical and social infrastructure are the primary driving factors of the demand for office spaces. Corporates need the workplace that is easily connected to the primary landmarks of the city and have or are likely to have good civic infrastructure.
Talent – They also want to set base in the areas where an efficient talent pool is available. So the availability and cost of the talent around the area is also a driving factor for expansion.
Real Estate – Then comes the most important factor- cost and availability of real estate in the area. What use would the talent and infrastructure be if their is no effective real estate.
The survey was conducted on IT/ITeS, Media, E-Commerce, Research, Consulting and Analytics and BFSI across the cities including Bangalore, Delhi/NCR, Chennai and Hyderabad. Because of the easy availability of good quality talent, IT/ITeS firms want to expand their operations in the southern cities like Chennai and Bangalore. Hyderabad is also a preferred and upcoming city for this sector. On the other hand, media firms want to set base in Mumbai and Delhi/NCR for there is a growing environment for their business.
Corporates are looking forward to increase their workforce in the next two years thus improving the demand for office spaces across the cities. In a nutshell, all the factors point towards a brighter future of commercial realty in India.
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