New Delhi: With the commercial sector booming, the supply chain businesses such as workspace design companies are also reaping its benefits and expanding rapidly.
“In India, on an average, there is about 30 million square feet of grade A office area that gets leased and occupied every year and that space is being leased to multinationals and Indian corporates that are growing to capitalize on demand from Indian economy and this is for us a massive opportunity,” said Arsh Chaudhry, chief executive officer, Space Matrix International, an office interior design firm based in Singapore.
India’s commercial real estate sector continues to grow as demand for prime office space reached a 10-quarter high of about 11 million square feet. for the July–September period, according to real estate consultancy CBRE’s India Office Market View report released on Wednesday. “This year alone we have got about 40 odd projects underway and expanding quite aggressively. We are growing at 25% year on year from the number of projects perspective,” said Chaudhry.
The demand for office space rose 14% on year-over-year basis. As on September 30, 2016, overall prime office space absorption across the seven leading cities was about 28 million sq. ft. for the year, with about 11 million sq. ft. absorbed in the third quarter, according to the CBRE report. The cities which fuelled the growth were Bengaluru with a rise in office demand of 24%, followed by Hyderabad and Mumbai with growth of 17% and 16%, respectively.
Space Matrix is also witnessing growth on the same lines, with rising corporate demand in the IT sector and technology companies. Recent domestic wins for Space Matrix include contract to develop a 1.1 million square feet office of ITC Ltd in Bangalore, the 400,000-square feet Abbott office in Mumbai and the 160,000 square feet Astra Zeneca office in Chennai.
Space Matrix is expecting to clock $150 million of total revenue this year with half of it coming from India. Another global workspace designer Steelcase has been expanding in India, with Bangalore proving to be a major market. Bangalore with the concentration of tech companies is providing highest growth, said Praveen Rawal, managing director, Steelcase India, adding that even tier-2 cities are experiencing rapid growth.