Announcing findings of India Office Real Estate Supply trends, US real estate consulting firm, CB Richards Ellis said in New Delhi on Tuesday, IT, ITES and BPO sector would absorb 80 per cent of the new supply expected to be generated by 2006.
The sector is growing at a 45 per cent compound annual growth rate, the survey said. "The year 2003 saw a total stock of approximately 36 million sq ft which grew up to 58.1 million sq ft in the year 2004. The total stock is expected to add over 23 million sq ft in 2005 to reach approximately 82.3 million sq ft," the report said.
"The year 2006 is expected to add approximately another 24 million sq ft thereby making the supply cross the 100 million sq ft mark," the report added.
Stating the country's real estate sector would surpass many other Asian markets in the next two years, CB Richard Ellis South Asia managing director Anshuman Magazine said Indian real estate sector, from being a very disorganised and a localised sector, has metamorphosed into an industry catering to multinational requirements in the commercial and retail arena.
"The office sector in India was minuscule compared to the population and the geographic expanse of the country. Due to substantial increase in the supply in the last two years, it is reaching a respectable level," he added.