Real estate cost optimisation: The road less travelled
Jones Lang LaSalle India CFO survey : Eight Trends for Real Estate Cost Optimisation
The Jones Lang LaSalle India CFO survey aimed to understand various Real Estate cost saving strategies adopted by corporate India. Based on the survey findings, we have identified a few thought-provoking trends that are existing or inevitably going to occur in the future.
In today's gradually changing world, the role of CFOs has evolved significantly. Following the uneven pace of recovery worldwide, CFOs are increasingly playing a critical role in shaping their organisations’ strategies and managing financial volatilities.
In India, few corporates have a dedicated corporate real estate team and in most cases, responsibility falls on the CFOs' shoulders. Therefore, we have positioned our study based on responses from CFOs of major Indian corporates, who we believe are strong representatives of their respective industries.
Amid the changing business dynamics and tough macro-economic conditions, a diverse set of industry verticals were chosen to arrive at the right mix of survey participants. Over 40 CFOs of large listed organisations from different industries were shortlisted to carry out the analysis.
We have studied the pattern of leasing activity over past few years and identified key industry verticals, which were acting as the fundamental drivers of office space demand in India. The IT & ITES sector - which saw a sharp decline in its share, falling from 48% in 2005 to 23% in 2009 - has improved its share to 39% this year. Contribution from Banking, Financial Services and Insurance (BFSI) has been steadily declining from 23% in 2009 to a thin 7% during 2012.
Other sectors, including manufacturers and other professional service providers, have continued to make notable contributions to the total leasing transaction volumes. Our survey of 40 organisations comprises a proportionate mix of occupiers type from various industry verticals:
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02 Dec - 10:00 hrs
Founder & CEO, Right Horizons