East West Commercial Real Estate

With increasing real estate costs, and strong competition for skillful labor in major centres, BPO (Business Process Outsourcing) firms are looking at smaller cities as locales for setting up their new operations.

As the BPO industry has registered $8.4 billion worth exports in FY 2006-07, up 35% from the previous year, this is indeed a carnival for small cities like Jaipur. Going further, BPO major Genpact has already established a huge facility in the city and firms like Infosys and Wipro have also articulated their interest in instituting their offices in Jaipur.

The appeal

The principal advantage with Jaipur properties is that of “cost”. As commercial property prices in Jaipur are far less in comparison with cities like Delhi, Bangalore and Mumbai, a business organization can significantly cut down on its operating cost.

Also the city offers good connectivity via roads, railways and air. Furthermore the availability of land is not a problem in Jaipur, and unlike the big cities, a firm can get hold of large chunks of land in the prime locations to set up their offices and development facilities.

BPO brigade – a boom

Both local and international industry biggies have netted BPO facilities in comparatively in smaller cities all over the country in the past few months, such as Mangalore, Jaipur, Coimbatore and Vishakapatnam.

Apart from 15% cost advantage, tier II cities have an unexploited real estate market, which means lower direct costs, and availability of cheaper local labor, says industry experts.

While roads may be less congested in tier II cities, other types of infrastructure may be lacking. But despite the disadvantages small cities like Jaipur may have professionals from the real estate industry believes that the commercial properties in Jaipur are likely to undergo a boom time as more and more business houses plan to set their base in the pink city.¨

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