While the IT/ITeS industry will continue to remain the largest office space occupier, it will not ensure superior investment returns.
The ongoing slowdown in the global economy has severelyimpacted India’s IT/ ITeS sector and we estimate it to grow at an annual average rate of 11% for the next five years.
By the virtue of being IT/ITeS driven markets, most of the business districts in Bengaluru, Chennai, Pune and Hyderabad would lag in terms of investor returns.
Issuance of new banking licenses and our forecast of 16% pa growth during 2013- 2017 will boost demand for office space from the BFSI industry.
Source : Knight Frank