Guwahati: The country’s office fit-out market is expected to touch $2.6 billion (over Rs 17,240 crore) by 2020 on the back of rising FDI (foreign direct investment) inflows, a report said.
According to ‘India Office Fit Out and Facility Management Market Outlook 2020’ by the Global Infrastructure Facilities and Project Managers Association (GIFPMA), “The office fit out market is expected to grow at a CAGR of 10 per cent during 2015-2020 to reach $2.6 billion by 2020.”
“The major factor driving the market growth is increasing FDI investment in the country,” it added.
The market also depends on the supply and absorption of the commercial real estate and vacancy levels of existing spaces, the study pointed out.
Commenting on the findings, GIFPMA vice president Shahab Ahamad said, “The builder works accounts for the highest share – 45 per cent of the total Indian office fit out market.”
“It is followed by mechanical and electrical installations, which account for 25 per cent share.”
“Regionally, the South region is estimated to account for the largest share of 40 per cent due to high office land absorption rate in Bengaluru and Chennai.”
The report also states that the Indian office facilities management services market exhibits huge potential and various foreign players are planning to venture into this industry.
“Currently, office space occupies close to 65 per cent of the Indian facility management services market. This high share is due to increasing commercial activities in the metropolitan areas such as Delhi/NCR, Mumbai, Chennai, and Bengaluru,” it added.
The study said with ongoing evolution in the commercial sector, companies are trying to be one step ahead from rest of the industry as the changing needs of corporate sector has called for advanced technologies and highly skilled workforce from facility management firms.
“Accordingly, facility management companies are gradually shifting towards automation of services and strategic investments to strengthen their position in the market,” it said.
The government is also taking various initiatives for aiding the market growth, it added.
The government has started calling for tenders for various facility management services in different sectors, which further bestows large opportunities to this sector, GIFPMA said.
“Hence, rising demand for facility management services, upcoming industry trends and relevant initiatives to combat the existing challenges will lay down a promising pathway for the Indian players,” it added.
PTI