Infrastructure development is the back bone of any developing economy. Due to liberalization of economy the real estate sector of India has witnessed a phenomenal growth in last two decades. Residential infrastructure have achieved a fair growth across the country due to several organized players, Tax sops, loan facilities, urbanization etc. Commercial real estate growth is led by demand for Commercial complex, retail, IT and IT enabled services, Hospitality, Entertainment, services such as school and colleges etc. But unlike the balanced growth of residential segment the commercial segment growth was concentrated in tire I cities only. Demands for commercial segment were mainly driven by services sector and were instrumental in expanding the city limits in to sub- urbs such as Gurgaon, Ghaziabad in NCR. Tax sops on profits of IT/ITeS and SEZs have also given rise to such sector. Past trend specifies that the demand for commercial real estate was on an upswing between 2005 and early 2008, driven by exceptionally high employee additions in the IT/ITeS sector. The strong demand from domestic IT/ITeS companies and captives of large global players was a result of increased business, primarily from the US and European markets. A healthy domestic economy coupled with aggressive corporate expansions led to strong demand from sectors such as Banking, Financial Services and Insurance (BFSI) and media and entertainment. Furthermore, limited supply of quality office space led to a sharp increase in lease rentals for commercial office space.
After tier I cities the corporates are looking for the tier II cities like Bhubaneswar for commercial infrastructure development precisely for the reason that the city is growing being state capital it’s the commercial hub for all the ongoing industrialisation and its also the gateway for the state of Odisha. Being the temple city of eastern India, Bhubaneswar now becomes the most desirable place; where demand for office space Bhubaneswar is growing rapidly.
Little over a decade ago Bhubaneswar had only one organised qualitative commercial space Fortune Towers. It provided the space for the MNC corporate to operate. There was acute shortage of the commercial space in the CITY. Gradually private sector developers are operating with PPP mode or otherwise which will augment the supply of commercial space in the city. Due to constraints of space and proper infrastructure the growth in tier II cities are also bound to push the old city limits. Twin City Tower A commercial complex with all modern amenities & facilities is being developed right on the NH 5.As the name suggests this is easily accessible from both Cuttack and Bhubaneswar. There is abundant open space and parking area .With its one of its kind architectural plan and elevation it will definitely become one of the prominent commercial hubs of Odisha.
A financial expert opines that even if there is no Direct tax benefit for the commercial space investor as in the case of residential sector. The IRR remains higher in the commercial segment investment due to its capacity to yield higher rentals.
To know more information about commercial infrastructure developments in Bhubaneswar visit the website http://www.twincitytower.com/.
Commercial Infrastructure in Bhubaneswar - An over view.