SERVICES THE DRIVER FOR OFFICE SPACE

At a time when the real
estate sector is slowing down, the services sector is expected to keep good the
demand for office space with an estimated absorption of 28-30 million sq ft by
the year-end, industry experts say. Being the largest contributor to the GDP
(nearly 63 per cent), the services sector is likely to drive demand for
commercial real estate, Jones Lang LaSalle India Senior Research Manager Subash
Bhola said. "An 8.5 per cent growth in the services sector in FY12 is an
indicator that a major slowdown in office real estate demand is not likely to
occur as it generates the highest demand for office space," Bhola said.
The service sector comprises banking, financial services and insurance (BFSI),
information technology, consulting, trade and communication. The absorption is
likely to be stable in short-to-medium- term, mainly on the back of ready or
near-ready supply, Cushman & Wakefield South Asia Executive Managing
Director Sanjay Dutt said.
"The domestic …
"The domestic …