Real Estate Trends To Watch
Real Estate Trends to Watch
Since urbanisation, the Indian real estate market has gone through various phases of evolution. Both, residential apartments and commercial spaces have seen the rise of innovative concepts and ideas. Be it an individual buyer or an enterprise customer the shift is tilted towards increasing convenience.
Apart from the buyers' perspective, there are also a couple of factors that have shaped the real estate sector in India. In recent times, the economic growth and government policies have opened new development horizons for the real estate market.
Trends to Watch:
Let’s take a close look at the recent trends in India’s real estate in order to understand where the market is heading.
- The Rise in Demand for Commercial Spaces: The new economic uprising has boosted the demand for commercial spaces. The digital boom has added to the number of start-up entrepreneurs on the business horizon. The other important reasons contributing to this growth are expansion of IT companies, especially in areas like Pune, Bangalore and Hyderabad, and the convenient access to funds. As per a recent report by JLL, commercial office space demand grew 18 percent to 23.4 million sq ft during January-September. Bengaluru has seen the highest absorption at 7.9 million sq ft, followed by Mumbai (4.2 million sq ft) and Delhi NCR (4 million sq ft). These cities contribute almost 70 percent of absorption across India. Subsequently. for 2019, a 16 percent year-on-year growth in net office space demand to over 33 million sq ft. is expected. Demand in the top seven markets -- Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Kolkata -- is pegged over 37 million sq ft.
- The Demand for Exquisite Amenities: If we look at the real estate scenario in cities like Mumbai, Bangalore, Hyderabad and Pune, we will find an increase in the residential apartments equipped with contemporary amenities. This trend is largely attributed to the rise in living standards of the people due to improved economic conditions. In the last five years, these cities have seen a tremendous increase in the number of customers who prefer contemporary homes and lifestyle.
- Demand for Co-working Spaces: The business landscape has changed enormously in the last three-four years. Compared to the traditional office spaces, there has been an increasing demand for co-working spaces. Constant government efforts to promote entrepreneurship and young entrepreneurs have led to this increasing demand. In the emerging business hubs like Pune, Hyderabad and smaller cities, business owners are opting for co-working spaces that are economical and convenient. If we take Mumbai’s example, the office market growth has to be attributed to the rising demand from co-working spaces as well as the traditional finance and IT sectors as per another report by Knight Frank.
- The Booming Partnerships: The real estate market is evolving, and everyone wants to play a bigger role in the market. If we look at the traditional picture, real estate marketing was largely dominated by the bigger players. However, as real estate development is moving towards the smaller cities, the picture has changed. This development has become very beneficial for smaller players as well. Especially, the remote areas of Thane, Mumbai, Pune, Hyderabad, Bangalore and Nagpur which have noticed higher number of new launches recently. Here, considering the market shift and customers' budget, we can see plenty of joint ventures that have become a common scenario for the real estate market.
- The Logistics Connection: In the last five to ten years, the customers' preferences have changed. It is not only applicable to the real estate, but to the other sectors as well. With players like Amazon, Flipkart and other online marketplaces, there is a much larger demand for warehousing spaces. This asset class has served as a popular investment attraction for many real estate players of late. If we look at this change minutely, the growth in online shopping has increased the demand for warehousing and other logistics services.
There has been a paradigm shift in promotion of projects and the way business is done. The real estate players have started exploring opportunities away from traditional housing development. The newer government policies, economic factors and the other business components have led to change in the mindset of the real estate developers. This shift is certainly positive and opens up some exciting business avenues for stakeholders in the market.