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The services sector, which accounts for nearly 63 per cent of the country’s GDP, continues to drive the growth of office real estate demand in the country, according to consultancy Jones Lang Lasalle.
In the report Pulse, the consultancy has stated that the services sector comprises of banking, financial services and insurance, information technology, trade and communication segment, continues to be core contributor to the growth of the economy and absorption of real estate space in the country.
In 2011, the services sector accounted for major chunk of the demand for commercial office space in major Indian cities. Within the services sector, the IT and ITES and BFSI were major contributors of demand.
The slowdown in GDP growth in financial year 2012 can be mainly attributed to high interest rates, inflation and a significant contraction in industrial production. However, the stable growth of the services sectors supported the overall GDP.
The services sector is projected to compensate for the slowdown in manufacturing sector and in turn will contribute to a large volume of office space demand.
The RBI has predicted that the Indian economy would grow by 6.5 per cent in FY-2013. This is seen as fairly healthy as compared with other major world economies. In such a scenario, an established service sector should help India resist any slowdown in office real estate demand, the consultancy stated.
rishikumar.vundi@thehindu.co.in
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