Even as residential real estate is down in the dumps despite the festive season, the office space has seen an uptake across India as corporates look to relocate and consolidate operations.
And if you thought it was IT that led the pack, think again. E-commerce, which has been making headlines in the last few months, is the frontrunner in real estate too.
Flipkart, which has doubled its demand for office space to 3 million sq ft just two-months after approaching top developers to lease 1.5 million sq ft, is all set to ink a leasing deal this week. And guess what: it is pegged to be the largest office space transaction in India in the last decade.
According to a report in the Economic Times, the deal is likely at Rs 52 per sq ft and Flipkart plans to absorb the entire office space in Bangalore in two phases, but in a record four to five years.
"The office deal with Embassy Office Parks will see Flipkart being housed in the 106-acre Embassy TechVillage, which has around 500,000 sq ft of space that is yet to be leased of the 1.9 million sq ft developed, with the potential for to develop an additional 10 million sq ft of office space," the ET report said.
What this also means is that hiring is likely to remain robust for the seven year-old-company co-founded by Sachin and Binny Bansal, which is not surprising, considering rival Amazon and Snapdeal are ramping up their presence in India.
According to a report in Livemint, Flipkart and Amazon India are also paying salaries that are often as much as 50 percent higher than the market pay for engineers. While Flipkart is offering salaries as high as Rs 16-18 lakh for entry-level engineers, Amazon picks up engineers from India’s leading engineering institutes and business schools.
Flipkart's focus is to ramp up its staff strength from 13,000 to 25,000, by the end of current fiscal. Even Snapdeal has decided to push up its hiring numbers to gear up for the competition and plans to add 1,300 people more to the current headcount of about 1,300 people.