India’s office space absorption rate to rise by 21% in 2013
India’s office space absorption rate is set to rise by 21% in 2013, a report from DTZ - the UK based property consultant company - suggests.
The rise in demand was attributed to rapid growth in India’s information technology and financial sectors, with the absorption rate set to grow to 38m sq ft in 2013.
Improvement in global and domestic economies is the driving force behind the rise, indicating a substantial increase from 2012’s disappointing take-up level, which was down 13% from 2011.
The report corroborates recent findings from SOS, showing unprecedented growth in India’s IT industry, including office space take-up which is set to rise by 50% over the next four years.
The two primary sectors, IT and financial, will make up 70% of the demand in office space in 2013. India’s technological and IT sector is likely to grow by 34% in 2013 and generate $110 billion in revenue.
15.96m sq ft of space will be required to accommodate an increase in its workforce of approximately 0.2million.
DTZ expects the emerging positive economic global and domestic indications will stimulate India’s real estate sector in the coming year.