India is a sprouting market with evolution being the most significant driver for progress. The last couples of decades have perceived an enormous surge in non-traditional businesses, mainly ruled by domestic start-up organizations along with the bigwig industry players. While big commercial giants have always been a part every trend in the market, the coming years will witness a major transformation with start-up organizations, gracefully embracing novel trends focusing on having flexible and collaborative work-spaces.
These companies have generated a fairly huge and central position for themselves in the economy. Start-ups follow a forceful way of functioning and expanding daily operations. These small organizations knows the knack of doing things innovatively, right from having on board young and enterprising talents, proper positioning of the market and productive expansion plans, these attributes will nothing but contribute in carving their bright future in the constantly evolving real estate market. Moreover the primary driver for the advance of start-ups in commercial real estate are introduction to creative technology and fluctuating nature of work.
Among the gamut of factors that influence the way commercial real estate in India has established, managed and used, there are 5 emergent trends that are of long-standing importance.
Co-working Spaces: Thanks to the escalating eco-system of start-ups in India and an enable entrepreneurship-friendly environment being created by the government, there will be a favourable rise in the demand for office spaces in the coming years. The major reason for commercial and co-working office spaces to gain traction is since it caters to the crowds of freelancing professionals and consultants in today’s globalized workforce. With great presence in almost all the Indian metros and Tier II cities, co-working spaces aid many start-up companies to procure flexible options of working at their price range. Some of these spaces, allow a rent-free period along with efficacies and an also lend a look and feel resembling offices to probable start-ups. The trend is slowly and steadily gaining momentum.
Crowdfunded real estate projects: This concept in commercial real estate aids trend-setters raise funds to launch their services through the digital podium. This procedure includes raising petty amount of money online from varied people throughout the globe. This practice in India being in its nascent stage, has an ability to pick up well. With advancement in digital technology and a transparent market, realty investors can shift to this method to earn good return. Also a lot of developers today are shifting base to crowdfunding to fund the construction process of commercial and housing projects.
Increasing Demand for Office-retail Complex: A working individual ends up spending almost his entire day at work, retail services try and locate themselves in the vicinity or just within the business district. Various retail classifications like recreational malls, high-end fitness centres, telecom services, spa, financial institutions, restaurants and coffee shops are looking positively at this zone. This facility lends the retailers a double advantage of paying lesser rents and also increases their access to their targeted segment of office-goers. Real estate developers today are more focused on experimenting in the mixed-use format rather than in the standalone retail format, allowing them to have superior retail facility on the lower floors and quality commercial spaces on the upper floors.
Tech-friendly Workspaces: Tech-savvy workspaces are in present times gaining more and more popularity in commercial real estate. These technological factors include accessibility to devices, proper system for data security, wireless connectivity and upgrades, apps related to business, conferencing and presentation competencies to name a few. The aesthetics factor which was previously the main consideration is today taking a backseat to make way for technology.
Warehousing: This is an imminent and a promising trend in the commercial real estate segment. With the implementation of government measures like the goods and services tax (GST) the potential of warehousing has only increased. Another entrant in the warehousing segment are the free-trade warehousing zones. These special zones lend tailored warehousing facilities that help store the products, prior to them being shipped in a structured manner. They are also cleverly located and well networked, thus, offering time and value benefits. Subsequently, there could be substantial attention from developers and the model is sure to prove tremendously popular. This will further safeguard that areas that were formerly abandoned will receive a major fillip, in terms of growth.
The coming years will foresee sustained proficiency gains as these fecund trends infiltrate the zone of commercial real estate. With the realty segment implementing all that technology has on offer, it will not only make real estate business well-organized, but will also make the developing start-ups and venture capitals regimented and focused on nurturing their growth.
