With the turn of fortunes of IT companies, the real estate sector has also started flourishing. This has been made possible by hiring mode adopted by leading IT companies. This has affected the commercial real estate segment.
Tata Consultancy Services has started large-scale recruitment in various cities. Network Appliance Incorporated has just purchased a portion of land in Bangalore in order to increase their India operations. Another company, Noida-based QA InfoTech intends to relocate to a campus whose size is twice the area of 50,000 sq ft of its current campus.
As a result, real estate companies have also reported a hike in demand from the IT sector.
In a statement made to Business Standard, DLF Group executive director Rajeev Talwar reported that the company has seen a rise in number of enquiries from the IT sector during the quarter ending March. The company has seen a rise in demand for office space with the area of 25,000-30,000 sq ft from the IT sector. It expects the demand to go up over the next couple of months.
Santosh Kumar, CEO (operations) of a major property consultant Jones Lang LeSalle Meghraj says that due to the revival of the US economy, the IT companies are again considering India for growth. It has boosted the real estate market in India with a hike of 20% in inquiries, and is believed to increase later on.