According to Knight
Frank India analysis, while the IT / ITES industry will continue to remain the
largest office space occupier, it will not ensure superior investment returns.
The ongoing slowdown
in the global economy has severely impacted India's IT / ITeS sector & expected to grow at an annual average rate of
11% for the next five (5) years.
By the virtue of
being IT /IT ES driven markets, most of the business districts in Bengaluru,
Chennai, Pune & Hyderabad would lag in terms of investor returns. Issuance
of new banking licenses and forecast of 16% per annum growth during 2013 - 2017
will boost demand for office space from the BFSI industry.
Mumbai, NCR,
Bengaluru, Chennai, Hyderabad & Pune
will witness the maximum traction in office space absorption in the country
over the next five (5) years.
Investor return
during 2013 - 2017 in the 33 business districts within these six (6) cities
will range from 8 to 19% per year. In most of the business districts, the
demand supply equation during our forecast horizon will remain in favour of
occupiers, thereby limiting rental growth to contractual obligations. An
estimated 25.1 million square feet.of new supply will enter the Chennai market
in the next five (5) years.
Knight Frank -
Chennai
3, Gitex Building,
IIIrd Floor,
Khader Nawaz Khan
Road,
Chennai - 600 006.
T +91 44 4296 9000
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