Jones Lang LaSalle, a global real estate company in 70 countries, has announced plans to enter the real estate market in Sri Lanka.
“Jones Lang LaSalle is opening a full-fledged operations branch in Sri Lanka. It is the first IPC to venture out into this lucrative country, based on its findings that Sri Lanka is a real estate boom, unfolding even as we watch,” said Alastair Hughes, CEO of Jones Lang LaSalle Asia Pacific.
“Apart from an immense market for organised commercial, residential and retail real estate services, Sri Lanka’s progressive market policies give it an incredibly business-friendly environment that is very favourable to investment and economic growth. We see it as one of the most attractive investment destinations in the Asia-Pacific region.”
The announcement was given at the firm’s annual Global Executive Committee which was held in India for the first time since 2007. At the meeting Jones Lang LaSalle also announced the launch of Jones Lang LaSalle Residential Private Limited, a specialized services division to cater specifically to the Business to Consumer (B2C) market segment.
“We are launching a dedicated B2C residential services wing in India, which will build on the success of its existing residential business operations in the Asia Pacific region,” said Hughes. “The primary purpose is to sharp-focus on the broader opportunities of the residential business within the APAC region, particularly China, Singapore and India.”
As part of this realignment, this business line will now be an integral part of the parent brand – Jones Lang LaSalle – as a separate business entity, in order to boost business synergies and address diverse customer needs within the Asia Pacific region, from both the brand and operational perspectives.
Jones Lang LaSalle India Chairman and Country Head Anuj Puri offered a snapshot of the Indian real estate market.
“We are seeing high levels of new supply in the commercial space segment, and the absorption of this space is equally strong,” he said.
“Approximately 24 million square feet of office projects have been completed in this year to date,” Puri added, going on to state that though there is still an overall vacancy rate of 19 per cent, the Indian office space sector is poised to grow by around 17 per cent year-on-year between 2011 and 2013.
In 2011, office absorption will surpass the 2008 peak of 33 million square feet, with Information Technology driving most of the demand. “There is also strong demand from the industrial and manufacturing sectors. Interestingly, the banking and finance sectors are now focusing on outright purchase,” said Puri.
Jones Lang LaSalle is a financial and professional services firm specializing in real estate services and investment management. It employees more than 40,000 people in 1,000 locations in 70 countries.