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The country’s office fit-out market is expected to touch USD 2.6 billion (over Rs 17,240 crore) by 2020 on the back of rising FDI inflows, a report said.
According to ‘India Office Fit Out and Facility Management Market Outlook 2020′ by Global Infrastructure Facilities and Project Managers Association (GIFPMA), “The office fit out market is expected to grow at a CAGR of 10 per cent during 2015-2020 to reach USD 2.6 billion by 2020.”
“The major factor driving the market growth is increasing FDI investment in the country,” it added.
The market also depends on the supply and absorption of the commercial real estate and vacancy levels of existing spaces, the study pointed out.
“It is followed by mechanical and electrical installations, which account for 25 per cent share.
“Currently, office space occupies close to 65 per cent of the Indian facility management services market. This high share is due to increasing commercial activities in the metropolitan areas such as Delhi/NCR, Mumbai, Chennai, and Bengaluru,” it added.
The study said with ongoing evolution in the commercial sector, companies are trying to be one step ahead from rest of the industry as the changing needs of corporate sector has called for advanced technologies and highly skilled workforce from facility management firms.
“Accordingly, facility management companies are gradually shifting towards automation of services and strategic investments to strengthen their position in the market,” it said.
The government is also taking various initiatives for aiding the market growth, it added.
The government has started calling for tenders for various facility management services in different sectors, which further bestows large opportunities to this sector, GIFPMA said.
“Hence, rising demand for facility management services, upcoming industry trends and relevant initiatives to combat the existing challenges will lay down a promising pathway for the Indian players,” it added.