IT-ITeS sector leases 10 per cent more office space in 2016
NEW DELHI: Office space leasing by IT and ITeS companies rose by 10 per cent last year at 16.81 million sq ft with Bengaluru and Hyderabad absorbing more than 50 per cent of this space, according to JLL India.
- "IT, ITeS occupiers have taken a big leap in office lease transactions in the last 15 years. Office space demand from them increased from 1.4 million sq ft in 2001 to 15.2 million sq ft in 2015.
- "With 16.81 million sq ft area transacted in 2016, it translates to a 10 per cent increase (y-o-y)," JLL India CEO & Country Head Ramesh Nair said.
Interestingly, he said, Bengaluru and Hyderabad together accounted for more than 50 per cent of this total pan-India IT space absorption. The consultant also said that the transaction sizes are becoming smaller.
The average size of leased area fell by 14 per cent to 27,000 sq ft in 2016 from around 31,200 sq ft in 2015.
Nair advised developers to design business parks for smaller requirements and shift focus from quantity to quality of tenants.
The number of lease transactions rose 52 per cent to 628 last year from 414 in 2015. In 2001, there were only 19 IT leasing transactions.
- "The growing transaction numbers indicate that IT companies which previously preferred built-to-suit office complexes increasingly prefer to lease offices which offer flexibility," he said.
JLL India said many Indian IT firms, especially the bigger ones like Infosys and TCS, earlier used to prefer constructing their own campuses. But, now they go for leasing as client contracts of many of these companies get shorter.
Many IT firms in India have followed the principle of
- 'one dollar real estate cost'
and typically lease quality spaces that charge rents below Indian Rs 65 (USD 1) per sq. ft. per month.
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Technically speaking, Indian IT Co.s have only to cut back on cheating and up their game with wizz-bang tech. Indian IT is a generation old.I am happy for all the good looking physical infrastructure that is coming up re: the Indian IT industry. Eg. the 3 million sq. ft. dlf cyberCity Hyderabad.
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http://dlfsezhyderabad.com/images/awards-&-recognition-big.jpg
Smartly, Indian IT has already built-up a full-on eco-system of skilling and training to the extent that many new features of any new tech. are liable for competition from Indian IT sub-k types.
I am happy and wish Indian IT firms reduce the Indian automobile, IT and rocket launch, satellite and outer-space industry to step-by-step system, method and process functions to help anyone in the world set-up their own launch, satellite and outer-space industry like Dubai is doing as we speak. Expand said application to all others like agriculture, fishing, logistics.