IT cos prefer SEZ due to non-extension of STPI

By Priyanka Ghosh, CNBC-TV18

IT parks are no longer the favoured destination for IT companies with many bigwigs opting for SEZs, which has led to a fall in rentals.

The activity at IT parks has slowed down. HCL, Capgemini and Accenture are heading to SEZs instead of IT parks, after the tax sops under the STPI scheme was not extended beyond 2009. Property experts say this will lead to an oversupply and subsequently lower rentals at IT parks.

Koustav Roy, Director, Cushman And Wakefield said, "There are pockets of oversupply across various micro markets within cities and across cities as well. So you will find IT parks like OMR in Chennai and Noida where there is an oversupply happening. 
   
Pawan Swamy, MD - Markets, Jones Lang Laselle Meghraj said, "Gurgaon, Whitefield and OMR have already seen a correction of 5-7%. There could be a further correction of 7-10%."

In Chennai, IBM, Accenture and EDS have acquired more than 100,000 square feet at DLF's SEZ in the last six months. Even as there are few takers for the IT park at OMR in the same city. Since SEZ are three times larger than an IT park, it helps the companies set up integrated services.

IT companies are however not giving up the space they already have acquired in IT parks. Even as their expansion plans are located in SEZs, they are adopting a "wait and watch" policy, holding on to already existing IT park properties. Sources say many of them now want to sub lease their IT park holdings.