Info-tech

Bengaluru, the most preferred destination for IT/ITeS firms

Anil Urs Bengaluru | Updated on January 22, 2018 Published on December 14, 2015

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“The city accounts for more than 40% of total space absorbed by IT/ITeS companies between 2012 and 2014, amounting to approximately 15 million square feet.”

Bengaluru has clearly established itself as the most preferred destination for corporates either to enter India or for expansion of their operations within the country.

“The city accounts for more than 40 per cent of total space absorbed by IT/ITeS companies between 2012 and 2014, amounting to approximately 15 million square feet,” Anshuman Magazine, Chairman and MD, CBRE South Asia, told BusinessLine.

“Office space take-up by IT/ITeS between 2012 and 2014, accounted for 37 per cent (nearly 37 million square feet) of the total occupied office space across all leading cities, leading absorption levels among all industry sectors,” he added.

“During the first-nine months of this calendar year, the share had increased to 41 per cent (close to nine million square feet),” he further added.

While India still remained the preferred destination for outsourcing, corporate occupiers have been growing in suburban and peripheral locations in the major tier-I cities. “The emphasis on quality infrastructure, mass transit and rentals continues to play a key role in decision making,” said Ram Chandnani, Managing Director, Transaction Services, CBRE South Asia.

Companies are also now under enormous pressure to drive down costs by increasing their workplace ‘static density’—the space per square feet per workstation. Benchmarking metrics such as workplace density and space utilisation are becoming more critical in helping corporate occupiers make informed workplace and real estate decisions, and manage their real estate as a strategic asset. Over the past few years, steady occupier demand, primarily from IT/ITeS companies, has supported the construction of a large volume of new office space across the country.

Magazine said: “Nearly 48 million square feet of IT space and around 38 million square feet of SEZ space was added to total commercial office stock between Q1 2012 and Q3 2015.”

New office space

Talking about Bengaluru, Magazine said: “Over the last three years, the city has seen the completion of the largest volume of new space, accounting for 30 per cent (around 25 million square feet) of all stock completed during the period. The Delhi NCR (23 per cent) and Mumbai (16 per cent) have also recorded an increase in new project completion.”

Published on December 14, 2015
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