The Real Estate Sector – One of the most recognized global sector and one of the biggest investment destinations in India offers huge growth potential to both residential and commercial buyers. Owing to the recent changes and schemes by the government, the Indian real estate is evolving rapidly. In current times, the growth of this industry is also being fueled by the constantly developing corporate environment, with the metropolitan cities witnessing a prompt surge in the demand for bigger, better office spaces by national and multinational organizations.
An increased occupancy trend by the well-established organizations has been witnessed in the year 2018 – Delhi NCR, followed by Pune, Ahmedabad, and Mumbai being a few of the most favoured cities by the corporates. The ever-changing IT industry, and non-IT organizations including healthcare, biotech, telecom, consultancy businesses, and more – have an enhanced focus on employee satisfaction and retention, thus the new standards related to the office infrastructure are being set. With this and more, the Indian real estate sector is growing at a pace never seen before.
Here are a few of the trends that are shaping the commercial real estate market currently:
Space efficiency & technological innovations – propelling the corporate real estate
In order to boost operational efficiency, the corporates are becoming space-efficient by consolidating multiple office spaces into one. The trend undoubtedly saves the overhead cost and contributes to the increasing demand for bigger office spaces. Also, since the technologies have evolved our lifestyles, the employees in the present time are no longer happy with basic amenities at workplaces. From smart workstations to intuitive meeting rooms and tech-enabled reservations and from wireless AV systems to app-based parking systems, the market is seeing a new trend in the demand for latest and technology-powered office solutions.
The WELL certified building concept is taking over
The new standards of “wellness” are getting popular in the Indian corporate sector too. The corporates now opt for providing better infrastructure, improved ventilation and lighting, and active furnishings to promote the well-being aspect among employees and boost their productivity. Meeting the green aspects of the building and ensuring the wellness of the occupants, obtaining the WELL certification for the proposed and under-construction projects is becoming a mandate for the real estate developers slowly but steadily.
The trend of co-working spaces
Over the time, the demand for co-working or shared workspaces has seen a significant increase as they allow the employees to enjoy vibrant work environment, agile workplaces, better networking and marketing opportunities, and cost-effective lease terms. Hence, not only start-ups and SMEs but the multinational occupiers are partnering with co-working brands. Due to their inherent cost benefits, flexible work environment, and superior infrastructure, a number of global players are moving out of their traditional office set-ups. This has led to the better utilization of commercial spaces and the popularity of co-working office spaces.
Buying the office space is becoming the trick of the trade
Keeping a long term vision in mind, more and more corporate houses are buying properties in commercially successful markets. As opposed to leasing an office space, this one-time investment helps to save the renting/leasing costs and builds a long-term asset that ensures favourable returns.
Extended lease terms is picking up pace
The trend that used to be pretty prevalent in Delhi NCR – the lease period of the commercial spaces used to be for 9 years. However, the corporates have now started to negotiate their lease terms and are considering to extend the leasing period to 12 or 15 years owing to increased business opportunities and growing revenue. This not only helps them secure the occupancy rights but also helps them save on the surging renting prices.
The corporate companies are getting bigger and better with each passing day and the increased demand for commercial properties has opened up the new opportunities for real estate developers. They can now drive more sales by constructing commercial real estate with flexible arrangements, superior facilities, and technology-enabled workplaces.
References: Media Reports, Economic Times, Press Releases
Disclaimer: This information has been collected through secondary research and Elite Landbase is not responsible for any errors in the same.