The demand for office space will be driven by the foreign retailers who now plan to expand their stores in India.
Office space will be more demanded in the major cities where the foreign retailers plan to expand their offices. According to the market intelligence report there are many foreign retailers who will drive the demand for office space with their expansion policies.
Gron Stockholm, Hamleys, Hennes and Mauritz (H&M), Lacoste and Starbucks are a few among the many foreign retailers who set to expand and establish their business empire in India.
However their expansion plan will boost the office space absorption in the major and top cities.
IKEA, a Swedish furniture company, too has plans to enlarge their offices in India and is waiting for the Cabinet Committee on Economic Affairs (CCEA) to clear its Rs.10,500 Cr investment plan. Once the Committee clears the investment plan, the Swedish Firm will open shops in India.
American coffee major Starbucks has; partnering with Indian brand Tata, already opened stores in Mumbai and Delhi. In the same way, along with Indian partners, other foreign retailers like Hamleys, a prominent toy maker in UK, European kids-wear chain Gron Stockholm, etc. also have opened stores in the Subcontinent.
Lacoste is another one to set up stores in India. French apparel brand also has entered India along with the Indian partners. H&M, fashion chain based in Sweden, is moving towards India with its application pending for the approval.
Besides the foreign retailers, the expansion plans of the Indian retailers like Aditya Birla Group, Bharti, Reliance and Spencers are also planning to expand their stores in 2013. This also will boost the commercial real estate demand especially in the major cities.
As per the available information, many Indian and foreign retailers plan to expand in the current year. Liberty Shoes, Malabar Gold, Peter England and Proline are some other majors who plan to have expansion in this year.