According to DTZ demand for office space will increase in 2013. The global real estate advisor added that this year more companies will expand their offices.
The office space absorption fell in the year 2012. This had affected the commercial realty sector badly. The office space demand is expected to increase this year. Office space absorption is expected to reach the mark of 30.5 million sq. ft.
Comparing to the last year, the office space demand will be more and far better. The 30.5 million sq. ft. mark itself shows that this year the commercial realty will have something to smile.
The improving global economy will have an impact on the office space absorption. The increased foreign direct investment FDI in retail also will boost the demand.
The Union Government has increased the foreign investment to 51% this year. With this increase in the investment rate, more foreign retailers are expected to enter Indian retail market.
According to the opinion of industry experts, the revised repo rates will result in better demand. Recently the Reserve Bank of India has revised the repo rate. With the sentiments in the market improving, the economy looks stronger now.
Anshul Jain of DTZ India said that the global financial crisis have started fading. This will improve the market sentiment.
Though all these factors will stimulate the growth of real estate sector as a whole, the commercial sector will be benefitting from it more. Mr. Jain added that this year the office space demand will rise by 12%.
Many companies are now planning to expand. Once they start their expansion, the office space absorption will be more. Though many firms had decided to enlarge last year itself, they postponed the idea due to the sluggish economy.
The expansion of IT companies will keen. This is mainly because the IT sector raises more than a half of the total demand.
