MNCs Buy Offices Worth 2,470 Cr In India: Cushman & Wakefield

NEW DELHI: Multi-national firms have invested nearly 2,500 crore in under three years to buy office space in India as against leasing it, property consultant Cushman & Wakefield said.

"Multinational companies are increasingly investing through purchasing offices in India... There is a seismic shift in the traditional approach of leasing space that such companies have had for years while considering overseas investment," C&W said in a statement.

With rising rents in prime markets where MNCs operate, the consultant said that there is cost benefit in the long term in buying office spaces rather taking on lease.

According to the report, "foreign MNCs contributed 43 percent to the total sales value of commercial offices" during January 2012 and March 2014.

During this period, the total sales value of office space was 5,730 crore, of which MNCs contributed 2,470 crore, it said, adding that MNCs in the BFSI, ITES, FMCG & Pharma sectors were among the lead commercial office buyers.

Among major office deals, the consultant said the Citibank India bought 0.3 million sq ft office space for 1,110 crore in Mumbai and Bayer group purchased 0.16 million sq ft for 130 crore in Mumbai. GlaxoSmithKline bought office space worth 140 crore in Delhi-NCR and Cognizant acquired office in Hyderabad for 110 crore.

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