New Delhi, February 3, 2016: CBRE's India Mid-Sized CorporateSentiment Survey reports on the findings of a study on the business sentiments of prominent mid-sized corporate real estate occupiers by CBRE Research. The survey was conducted during the June–July 2015 period, and covered responses from leading corporate firms in the category, headquartered in India and overseas. The survey pointed to the choice of corporate workplace being progressively driven by the three objectives of Talent (cost and availability), Infrastructure (physical and social) and Real Estate Options (cost and availability). Respondents of the survey included corporates based across different industry sectors, representative of typical Indian office space occupiers.
The following are the key highlights from the CBRE survey:
- Corporate occupiers in the country are likely to progressively adopt workplace strategies. The CBRE survey revealed the increasing inclination of occupiers towards adopting efficient workplace strategies, with corporates mainly preferring to adopt a format of pure open space workstations.
- Core locations and central business districts of cities continue to be preferred by leading corporate space occupiers. The survey explored respondent preferences across various occupation options with results indicating that most respondents (about 75%) preferred to pre-lease, lease or purchase office space within the core locations of cities.
- IT/ITeS firms likely to expand operations across leading southern cities; while respondents of other key sectors preferred Delhi NCR and Mumbai for future expansions. Occupiers across the top industry segments were asked to chart out the direction of office expansion over the next two years; with diverse results reported across tier I locations. Most IT/ITeS firms (about 70%), for example, are likely to expand their operations in the southern cities of Bangalore, Chennai and Hyderabad; while media, e-Commerce and BFSI respondents (about 55%) chose to expand in Delhi National Capital Region and Mumbai in the next two years.
- Corporate offices expected to increase their headcounts over next two years. Respondents across major industry sectors remained bullish on their India expansion plans, and are likely to raise their headcount in the next two years. About 80% of respondents from industries such as IT/ITeS, research, consulting and analytics, media, e-Commerce and BFSI are aiming for a 20% increase in employee headcount over the next two years.
Anshuman Magazine, Chairman and Managing Director of CBRE South Asia Pvt. Ltd., commented:
“The findings of our survey indicate that office occupier sentiment is largely positive towards India’s business environment for the next few years. Going forward, while many were comfortable with the Corporate Real Estate (CRE) strategy of expanding within their existing markets, these decisions will be influenced by various aspects that impact CRE management including CAPEX and external costs of rental escalations.”
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
