India’s rate of growth in terms of economic factors, has been on the rise over the past 2 decades. First, there was an influx of MNC’s, who set up offices in major Indian metros. The rise of the IT sector saw the rise of IT parks and huge tech campuses all over the country, especially in Bangalore. A more recent trend has been the start-up trend- that of venturing out and starting a business of your own. A number of individuals, with unique business propositions, set out to achieve their dreams. What followed was a huge increase in innovation in different spheres. From customised merchandise, to fashion recommendations, startups covered them all.
Naturally, the increase in the economic activity over the recent past has led to a commensurate increase in demand for office space. The 3rd quarter of 2016 saw office space demand rise by around 14% (Source:CBRE).
Cushman & Wakefield report that in 2017, India’s net office space absorption is to cross over 32 million square feet. Out of which, Delhi-NCR shall have a 15% share. Naturally, this takes into account the office space for rent in Gurgaon and other important areas as well.
For every major MNC that can afford to buy large swathes of land and build vast campuses, there are other smaller firms whose budgets are often not very high.
Every enterprise, of every size, needs to function effectively in order to generate profit. It is just not the large firms that make all the money. Smaller companies are successful in their own way as well.
The trend for increase in demand in office space has been fuelled by the economic growth over the last year. 2016 was a great year in terms of growth, the GDP was around 7%. Enterprises not only came up, but also grew, expanding in ways never seen before. A simple example would be PayTm. The way the enterprise took advantage of demonetisation was commendable.
Naturally, when a company grows like that, its appetite for office space increases. There are many such successful companies in our country, and many more firms that are still in the shadows, scripting their success story, toiling away towards their goals.
The increase in demand in office space cannot be matched by the supply. This is when it makes sense for a company to make use of serviced office space. In addition to providing a great location and a physical address for your business, a serviced office provides other essential services that are very important in the day-to-day running of an enterprise- secretarial services, comprehensive support when required, virtual offices, etc. To organise all that on your own would take up considerable time, effort and money.
The convenience of a plug and play setup can never be spoken about enough. The entire responsibility of building a space from scratch, goes away. Now, real estate is expensive and developing it, is even costlier. And for a firm on a budget (whether you’re starting out or are already in the market) it makes sense to avail of such a convenient setup. In key business areas like Gurgaon and Haryana, it is prudent to use the serviced office space in Gurgaon and commence operations.
The growth predictions for India for the next half of 2017, have been favourable. The increase in demand for office space will occur simultaneously. A firm will do well to take advantage of the situation (location and services) and get down to conducting serious business, i.e, hitting the ground running.