Office space demand to grow by nearly 50 pc in 2010

According to the country's largest property consultant Jones Lang LaSalle, the demand for office spaces stood at 28 million sq ft in 2010 compared to 19 million sq ft in 2009.

"The growth was led by banking, financial services and insurance companies, pharmaceuticals firms, telecom sectors and manufacturing industries that expanded their corporate offices," Jones Lang LaSalle Property Consultants (India) Chairman and Country Head Anuj Puri told PTI on the sidelines of CREDAI Natcon summit here.
He said the contribution from the IT sector has come down to about 50 per cent from 80 per cent in 2008 levels.

When asked about the rentals in the sector, Puri said: "Rentals in the segment remained stable during 2010 due to excess supply than the actual demand...It (prices) is unlikely to strengthen in the coming year as well." However, certain locations in Delhi and Mumbai may witness some upward movements of rental values of office spaces in 2011, he added.

The supply of office spaces stands at about 40 million sq ft across the country during the ongoing year, he said. Puri further said property prices had fallen about 20 per cent across all categories in 2009 on account of recessionary effects.