Construction rental in India is booming.
With a growing number of construction firms opening their offices and working across the country, many construction companies are also making a profit in the process.
The number of firms renting out their office space for construction has risen to over 20 lakh across the states and union territories and the number is expected to rise further, said Ashok Kumar, CEO, Nurture Construction India.
Construction companies are investing in technology, building equipment and facilities, making it possible for companies to rent office space.
The demand for office space is rising as people are turning to construction as a way to make a living and make a good living, said Kumar.
“There are a lot of companies renting out office space in India.
There are also a lot more companies making profit by renting office space,” he added.
While there are many factors that go into deciding whether a company will rent or rent out office, Kumar said there are a few factors that he considered.
“The company is also making profit.
There is also a need for a good working environment, for example, an environment conducive to business growth,” he said.
The growth in office space rents in India comes as many companies are seeing an increase in their sales.
In the year to March 31, 2016, there were 8,094 office space rental transactions across the States and Union Territories and 9,988 in the country.
“We have seen a lot growth in occupancy of office space and this is good news for businesses, said Gopal Jha, head of research, BDO India Pvt.
This is an opportunity to bring in more revenue and build new office space which will help the economy,” he claimed. “
It is good for the economy.
This is an opportunity to bring in more revenue and build new office space which will help the economy,” he claimed.
The rise in office occupancy is not just in construction companies, according to Jha.
“Most construction companies have been seeing an upturn in occupancy over the last few years,” he explained.
“In 2016, the occupancy rate in office buildings was higher than in hotels and apartments.”
While it is important to keep in mind that occupancy of a building does not mean that it is occupied, said Jha that it indicates a company is making money.
“When you rent out your office space, you can make money.
There should be a good work environment and good management,” he argued.
Construction rentals are booming In India, office occupancy has seen an uptake.
In 2015, there was a rise in the occupancy of offices across the countries, and it was expected to continue for the next few years.
“While the occupancy is increasing, it is still very low,” said Kumar, adding that there are also some companies who are leasing office space but there is no way for them to profit from it.
According to a report by the Institute of Development Studies and Research (IDRS), the occupancy growth rate of the construction sector has been growing steadily for the last two years, but it has been slowing down since the year 2016.
“Construction is in the best shape it can be.
This has allowed companies to make profits, especially in construction.
But there is a lot left to do.
We have to make sure that these gains are sustained,” said Jena, a director at Kishore Construction, a Mumbai-based construction company.
Construction is a lucrative sector in India The boom in office rentals is not a new phenomenon.
“I was at the office rent-by-occupancy for several years in my younger days.
I remember seeing an old building with a sign saying ‘rental’ and being told that there was nothing for rent,” said Nirmala Bhatia, director, Centre for the Study of Labour, Delhi University.
“But when the office was being rented out, there would be more and more vacancies and people would be trying to rent out their spaces,” she said.
Construction rents are also rising across India, according the Indian Institute of Management, (IIM), an Indian Institute for Management, in its report, ‘A Survey of Employment in Construction.’
According to the report, construction companies in the States of Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh are the largest tenants of office spaces.
“As the number of vacancies continues to grow, construction rental revenue will continue to grow at an accelerated rate,” said Bhat.
According in the report released on Tuesday, construction rent revenue in India increased by 3.4% to Rs.2,095 crore in 2016.
Construction rental revenue in the Union Territories of Karnataka, Andhra, Tamil, Kerala and Odisha grew by 10.5% to $1,738.5 crore.
Construction rent revenue has been rising for a number of years, and in the past year has also risen by more than 8%.
The Indian Council of Structural Engineers (ICSE) has forecast a 5.5-fold increase in construction rental