The growth has seen in the Commercial real estate and all this happens due to the expansion of the IT companies. It is estimated that commercial real estate absorption is expected to rise at a steady pace with 28 million sq ft by 2015.
In the first 6 months of 2013, total relocations across top eight cities was at 5.46 million square feet which was 2.5 times higher as compared to the same period last year and is one-third of the total leasing activity also. Few changes have seen in the market also, as now there are large companies who relocate themselves and consolidate their operations within a city to those locations where they get the quality construction with more space at 15-30 per cent lower rent. Thus it is seen that major IT companies relocate across the top eight cities to peripheral locations.
In Bangalore during the first half of 2013, the highest proportion of IT company relocations is recorded with a considerable increase of more than three times if we compare this to the same period of last year. Locations from where companies are relocated such as MG Road, Millers Road, Vittal Mallya Road and Residency Road to peripheral regions such as the Outer Ring Road . Due to the lower rentals and more available office space in the outskirts of cities, such as Delhi, Mumbai, Hyderabad, Chennai, Pune and Kolkata, it has been recorded that commercial real estate has been increased.
It has been observed that in the month of Sep, 2013 IT companies of India or Indian IT service exporters are happy as most of the company’s growth expand or increased than June, 2013.
There are few IT companies whose growth have increased from last quarter such as TCS (Tata Consultancy Services), India’s largest IT exporter increase by 5.4 percent over the June quarter. Infosys generates more revenue and meet their investor expectations for many quarters than expected. For the quarter of September, Infosys generates revenue of $2.06 billion and it is increased by 3.8 per cent sequentially, that projected a growth of about 2.6 per cent. Wipro’s revenue increased to $1.63 billion for the quarter of September which shows the growth of 2.7 percent over the June quarter.