Information technology (IT) and IT-enabled services (ITES) sectors will continue to drive the real estate demand in Chennai and Bangalore in 2005, according to consulting firm Cushman & Wakefield.

The companies looking at expansion in Chennai include 24/7 Customer, LanceSoft India, the UK-based Cartel Group Holdings, SlashSupport and International Tech Park Chennai (jointly promoted by Singapore Ascendas and Tamil Nadu government).

JP Morgan Chase, the US-based Caterpillar, human resource services firm Manpower Services India and government projects are likely to come out strong in Bangalore. JP Morgan Chase is setting up a second back-office operation, while Caterpillar Inc would open its e-logistics facility in Bangalore. Manpower Services India has announced expansion of its workforce solutions division in Bangalore.

The additions in commercial office space in Chennai suburbs are likely to pick up by the first quarter of 2005, says Cushman & Wakefield. Among others in the IT/ITES sector, 24/7 Customer (a third party business process outsourcing company) is expanding its Chennai facility, which has an initial capacity of 250 seats.

LanceSoft India, a subsidiary of LanceSoft Inc US, too has announced a center in Chennai with plans to hire 1,000 employees in the next one year. The company is also looking at a research and development (R&D) center in Chennai.

SlashSupport, a tech support subsidiary of the US-based Cybernet Software Systems Group, is setting up its third offshore advanced tech support facility in India. The expansion is in line with the growth plans of SlashSupport to increase the headcount to 2,000 from 1,200 by the year-end.

Meanwhile, the UK-based Cartel Group Holdings Plc has entered into a joint venture with Supersight Ceequence for setting up BPO and call centre operations in Chennai. Supersight Ceequence has been managing Cartel?s mortgage business lead generation from its Chennai center since early 2003.

Cushman and Wakefield has also said in its report that the capital value for office space in Delhi increased by 4-5% in April-September, while the rental value appreciated by 2% at prime locations.