Thursday, March 29, 2007

Demand Market!!!

Many of you might be wondering where is all this IT space demand that I keep talking about - is it for real or only existent in the realms of my mind?

Well, here is some proof that the demand for IT space in Trivandrum is going through the roof, pun unintended! This is a list of space requests which has been published on the Technopark website. It includes some of the biggest names in the business - Emaar, Ascendas, Rahejas, PCS and many more.

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So like the man asked, "where's the wood for the trees?" or in this case, "the space for the IT parks?" Sadly, the answer is none is available as of today. Technopark Phase I is bursting at the seams with buildings. With the Leela Infopark, IBS campus, Tata Elxsi campus, NEST building and the TCS development centre all in progress, there will soon be about 4 million sft of space on the campus. Anymore buildings and Technopark will no longer be the "Greenest Technopolis in the World", its much-cherished nickname.

And due to the dilly-dallying of successive Governments, Technopark Phase III, with an extent of 100 acres, is late - by the small matter of nearly three years! Even today, the physical acquisition of the land has been suspended due to a dispute in the valuation of land.

Apparently the geniuses at the Revenue department have decided to offer paltry sums of 6,000-10,000 rupees per cent in an area where the prevailing market prices are in the range of several lakhs. The tenants are ready to move out if the offer is hiked a bit, atleast to match the compensation paid for the land acquired under Phase II. It wouldn't have taken Albert Einstein to figure out that Phase III compensation had to be atleast a wee bit higher, considering the fact that the IT Corridor is witnessing the highest rate of real estate inflation in the State. Instead, our smart boys went and reduced the amount!

It is interested to note that the same Government was open to paying up to 90,000 rupees per cent for the land needed for that will-o-wisp project called "Smart" (???) City. Despite the fact that it has been controversial at best and bird-brained at worst, this kind of money (over 80 Crores all told) has been lined up for the project land acquisition. In the case of Phase III, the investors are all accredited developers or IT companies. Emaar and Ascendas are international majors while firms like the Raheja Group, Embassy and PCS are well-known national giants. Yet, it seems GoK wants to take "penny-wise, pound foolish" to extremes here!

It is heard that the land will be revalued and the new compensation will be paid out in a matter of weeks. However, in a time of penury for the State Treasury, let's keep our collective fingers and toes crossed. Stay tuned, for updates!

1 comment:

  1. ajay keep up the good work! interesting updates of our beloved city..I wud miss the old ramshackle buildings from the 70s and 80s ,I used to see growing up..had a homely feel..but all for the better!


Thanks for your comment, I will take a look at it and put it up at the earliest.