5 Places Where Greater Office Space Absorption Has Triggered Demand For Homes
The demand for corporate office space in India is rising. In the second quarter of 2015, over 8 million sq ft of commercial space was absorbed by firms. How does this influence the economy and home buyers?
The demand for office space is one of the best reflections of the strength of an economy. When the demand for corporate office space goes up in a city, more and more people migrate to that city. Corporations lease or buy more space when they wish to hire more employees. It also is an indication of employers' faith that the economy is headed in the right direction.
Moreover, when there is greater demand for office space, many other enterprises like restaurants, shops, cafes, supermarkets and shopping malls would emerge around it. Home buyers would find the place more pleasant to live in, because the quality of amenities would rise. Soon, the demand for homes would rise. Growing demand for office space indicates that residential property prices will rise very soon, because the demand for homes would rise. When a neighborhood becomes attractive to corporations, home buyers can not be too far from it.
Here are the five places in India where office space consumption has driven demand for homes:
Whitefield, Bangalore: Many multinational companies have opened their offices in Whitefield. This, in turn, has made the locality very attractive to home buyers. IBM, Dell, Oracle, Intel and many others have offices in Whitefield. But, a few decades ago, Whitefield was a small village where nothing of significance happened. It has several IT parks today and is popularly called the 'New Bangalore'.
Greater Noida: Many global firms have invested in property in Greater Noida in the recent past. Even though the infrastructural growth in Greater Noida is still in its infancy, such investments have raised the price of residential property. Apartments in Greater Noida are now in great demand.
But, this was not always so. The Delhi Mumbai Industrial corridor is one of the factors which fueled demand for office space in Greater Noida. Now, many large firms in China, Korea, Singapore and other parts of the world are in talks with the Uttar Pradesh government to open offices in the city.
Kharadi, Pune: Kharadi is a business district in Pune where office space is much sought after. The SEZ, EON Free Zone, is one of the factors why Kharadi is now an attractive place for corporations and home buyers. There are many five star hotels in Kharadi too, which contributed to its growth. Kharadi is also close to Pune Airport and the Pune Junction railway station.
Sohna Road, Gurgaon: Sohna Road, Gurgaon, is known for its affordable office space partly because it is closer to the National Highway 8. As Sohna Road also has many independent buildings that commercial enterprises can lease or buy, the demand has been growing. As a result, many residential projects have emerged in the recent past, even though the roads, sewage and drainage are in a poor condition. But, this has not stopped corporations or home buyers from buying or investing in real estate in the area. Many ongoing and proposed projects are likely to improve the infrastructure in Sohna Road.
HITEC City, Hyderabad: HITEC City in Hyderabad houses offices of many large corporations. Facebook, for instance, plans to build its fourth office in HITEC City. Microsoft and Mindspace have offices too. The demand for residential property around HITEC city have risen too. Even though Central Hyderabad is still preferred by home buyers, residential property near this IT hub has been rising in value in the past few years.