NOIDA: As
Chinese companies are increasingly expanding their global footprint,
Delhi-NCR has so far emerged as their favourite destination for setting up offices in India.
This inference can be drawn from a report by real estate research agency Jones Lang LaSalle (JLL) that reveals Chinese companies have leased over 5 lakh sqft office space in Delhi-NCR between 2015 and 2017.
According to the report, titled ‘China 12: China’s Cities Go Global’, Chinese firms have leased 5,16,667 sq ft of office space in Delhi-NCR from 2015 to 2017. Mumbai, in comparison, has seen 85,537 sq ft office space consumption by Chinese-origin companies in the same period.
Globally, 10 cities have maximum connect with China via office space lease — Delhi-NCR (counted as two cities), Madrid, Bangkok, Munich, Kuala Lumpur, Moscow, Sydney, Manila and Jakarta. However, when it comes to the expansion of its existing mainland offices offshore, in Asia, Singapore figures on top of the list.
The Chinese companies which have recently expanded their operations in India include Vivo, OPPO, Alibaba, ZTE,
Huawei and Xiaomi. Though technology companies like Vivo, OPPO, Xiaomi, ZTE and Huawei, and e-commerce giant
Alibaba all have their corporate offices in Gurgaon, some of them even have their mobile handset manufacturing units in Noida.
For instance, Vivo has taken up 6,00,000 sq ft office space between 2014 and 2017 while its competitor OPPO has occupied about 100,000 sq ft in the NCR in the same period. Players like ZTE, Alibaba and
Bank of China together have absorbed office space of about 100,000 sq ft in Mumbai between 2015 and 2017, says the report.
Ramesh Nair, CEO and country head, JLL-India, told TOI, “Chinese companies have been making their presence felt in Asia and have set up offices in major markets, including India. Even though leasing is still largely driven by US and EU-based companies in India, Chinese companies are fast setting up base to take advantage of the market size and the accelerated growth of the economy.”
“India is a diverse market that provides global corporations both a centre of excellence as well as a promising audience for their products,” he added.
According to JLL, the trajectories of many Asian cities — from megacities to mid-sized hubs — are set to be transformed by Chinese activity in coming years and Chinese technology and innovation will transform the way people live and work in these cities.
“Corporate presence, leasing activity and investment measures clearly indicate a growing interest from Chinese firms in south and southeast Asia. Delhi, Mumbai, Bengaluru, Jakarta, Kuala Lumpur, Bangkok, Manila and Ho Chi Minh City may be key targets for Corporate China. As a result, we may see a realignment in the corporate geography, as attention tilts towards India and southeast Asia,” said Jeremy Kelly, director (global research), JLL.
Other researchers have identified five areas in NCR that can be turned into hubs for affordable housing. They are Sohna in Gurgaon, Rajnagar Extension in Ghaziabad, Yamuna Expressway, Greater Noida (West) and Bhiwadi.