Rising Entrepreneurship Leads To Higher Absorption Of Office Spaces

Vikas Gupta, JMD, Earth Infrastructure shares that the rising entrepreneurship has propelled a higher absorption for office space in India.

The rising entrepreneurship has led to a surge in the number of business entities, especially in the small and medium sized companies. According to The Global Entrepreneurship Monitor (GEM) Survey 2013, 61 per cent of people in India agree with the fact that entrepreneurship is a better career choice. In the current times, many start-up companies are led by younger generation.

Also, the new age professionals find their contentment in owning a business rather than getting hired by them. Such aspirations open opportunities not just for themselves, but the other sectors as well.

Increase in demand for office space is one direct impact which is visible with the rising phenomenon of entrepreneurship. In the top seven cities, demand of the office spaces surged to the 35 percent during the last fiscal. It stood at 8.2 million sq ft in comparison to 6 million sq ft in the previous quarter, as per the estimates of commercial property consultancy CBRE.

The surge in the demand for office space also grew with the rising phenomenon of the special economic zones (SEZs) where business units get multiple advantages, from infrastructure to the common facilities, industry oriented local policies to rebates or tax holidays or export promotion activities. Such initiatives don’t just lead to forming a good business environment but also provide opportunities to the related sectors like real estate which is currently reeling under pressures of an uncertain political environment, economic slowdown and high prices.

The said report also reveals an interesting trend of a rise in demand for office spaces from the SME segment, which normally has very specific requirements. SMEs usually need to utilize the maximum spaces in their office premises. Office or working zones must be energy efficient to reduce their cost of operation and maximize their return on investment.

Earth Infrastructures Ltd has also been a part of this trend with its office space segments like Earth Sapphire Court, Earth Alpha Tech, Earth Beta Tech, Earth Gamma Tech, Earth Express One, Earth Iconic etc. These commercial projects cater to the needs of the business community for commercial as well as retail zones.