India ViewPoint Disruptions in Indias IT Sector and Impact on its CRE Market June 2017
India’s office real estate market has undergone a complete metamorphosis over the past couple of years, both in terms of demand drivers and space format requirements. The Information Technology (IT) and allied services sector has been the principal driver of office space demand in India; with its share in office leasing varying from as high as upwards of 50% over the past couple of years, to as low as 35-40% in recent times. The sector is currently going through a series of disruptions; changes in the H-1B visa regime proposed by the new US government, increased protectionism impacting the growth of outsourcing to India, the increasing automation of processes – all of which are likely to lead to a subsequent slowdown in projected demand. Being a flagship industry, disruptions in the same are expected to trickle down to the Indian real estate (RE) sector as well.