Global real estate advisor DTZ reported that this year the demand for office space is likely to increase. Office space demand will be more this year, the report added.
As per the reports of DTZ, nearly 30.5 million sq. ft. of office space will be demanded this year. Comparing to the last year’s office space demand, this year it will be more and far better.
Global economy has started picking up after the downturn. This will boost the office space absorption this year. Additionally other factors such as increase of foreign direct investment (FDI) in the retail sector also will have impact on office space demand of the current year.
Along with the 51% of FDI, the revised repo rates of Reserve Bank of India (RBI) too will boost the demand for office space. The market sentiment has resulted and the economy looks stronger now.
Anshul Jain, DTZ India CEO, said that the fears over the global financial crisis have started fading, resulting in improved market sentiment.
These positive factors will stimulate the real estate sector as a whole. Particularly they will stimulate commercial segment.
Mr. Jain said that this year the office space demand will reach 30.5 million sq. ft. with a 12% increase on year to year basis.
Giving a sign of hope, now many companies are planning to expand their offices. In 2012 many of them postponed their expansion plans due to the unstable market. Once they start expansion –works, the demand will be all the more boosted.
Business expansion will be driving office space demand in the FY2014. The office space absorption is likely to be more this year.
IT sector is expected to take up nearly 15 million sq. ft. this year as against the 12 million sq. ft. of the last year. This will show an increase of 24% on the year to year basis. Jain added that over the next 12-24 months the rentals will increase. This will boost leasing.