By Jaipriya KS, Content writer, Homes

Top 7 Imminent Trends in Commercial Real Estate

The best investment on earth is earth - Louis Glickman

Commercial Real Estate industry is considered as most valuable investments like any other investments on gold, crypto currencies, mutual funds and so on. The rising demand for homes and industrial space has further added to the value of this industry. The rewarding benefits and investments led this industry to stay in trending among other industries in market place. Undoubtedly, industrialization and urbanization in India is fueling the demand for commercial real estate development. In India’s GDP growth, the role of real estate industry has become significant. In addition, increased urbanization, migration of people to metropolitan cities and emergence of middle class people with potential to buy properties is creating more possibilities for well structured & smartly organized buildings and infrastructure.

India is a second largest country in sheltering the population next to China, thus, the demand for housing and corporate spaces in India is increasing tremendously.

The expansion of real estate industry in India has shown an extreme transfiguration in recent days. Indian Real Estate industry is accounted at $265.18 billion in 2023 and hoping that the numbers to reach $828.75 billion by 2028. The growth of Real Estate industry is skyrocketing, because people are aspired to invest more and more on properties and real estate expecting multifold returns and long term profit. This is transforming the façade of real estate to next level through leveraging science and technology effectively and efficiently. There are wide range of smart techniques that are widening the aspects and possibilities in Real Estate world.

This highly fragmented resonance of real estate industry has witnessed extreme new opportunities in India. To understand deeply, let’s take a brief note on few advanced opportunities emerged in real estate industry recently.

1. Demand for Office Spaces:

The post-pandemic scenario of returning work from home to office culture brought an unexpected demand for office and organizational spaces in India. This paradigm shift made the tech and non-tech companies to invest in office spaces by realizing the benefits of occupying highly organized and well designed infrastructures to enhance the productivity. And also acquiring sufficient administration space to manage employees leads to increased requirement of working premises. In order to meet this demand, many existed and emerging real estate enterprises are contributing greatly by offering office spaces for companies.

All these factors have accelerated the real estate industry to boom and grow effectively. Especially in Tier I & II cities which are termed as ‘tech hubs of the country’ are enormously adding in the growth of leasing office spaces among real estate ventures. Enterprises such as Brigade, Manyata, We work, Awfis and IndiQube are major game changers in commercial office spaces in recent days.

2. Evolving Retail Properties:

The online selling and purchasing is growing rapidly, thus, the consumption of retail stores did not get faded completely. They have refurbishing their roles and heading into various growth and development. Although e-commerce platforms have evolved with more tech-based trends like online shopping, yet many people still prefer to visit brick and mortar stores such as showrooms, supermarkets and departmental stores, to enhance their buying experiences in finding quality and suitable products according to their tastes.

Hence, these factors show the need of retail properties. Today, many business entrepreneurs tend to invest in retail properties which are highly profitable in market. For example, IKEA is one of the successful global retail stores acquiring more customers by offering various services at one place with affordable pricings.  They are attracting wider customers by providing restorative environment to calm and chill the loud senses of people by establishing food courts and themed arena for relaxation and wellness.

3. Corporate Housing:

Corporate housing refers to well equipped and serviced apartments leased to temporary accommodation for certain period of time. Today, most of the corporate companies prefer to offer safe accommodation and housing options to their employees. They are likely investing in housing apartments to provide flexible and private environment for their employees. People do like to occupy corporate houses because they are secured with proper maintenance and locations. These houses are structured & located as conveniently nearer to their work places.

These beneficiary elements are steadily transforming the mindset of people to opt for corporate housing and companies to build more corporate housing. People nowadays showing more willingness towards corporate houses, because they are available with fully furnished units and comfortable living spaces. Enkay, JDS Utilities and Ahuja Residency are major set of corporate housing companies in India which are perfectly catering the housing requirements of corporate employees.

4. Industrial Warehousing:

Ware housing has become key trend in bestowing innovative opportunities in commercial real estate field. Basically ware houses are intermediary storage system of goods and products. Due to the increased urge for speedy and secured delivery services, the need of warehouses becomes essential. They exhibit major role in supply chain management for both domestic and international purposes. Recently, the top marketing and e-commerce platforms started to utilize the warehouses efficiently for their merchandising purpose.

The construction and implementation of warehouses are increasing rapidly and ramping-up the big corporate professionals and firms to invest more in constructing big and efficient warehouses. To name top warehousing companies in India, Mahindra logistics, TVS supply chain solutions and FarEye are playing efficient role in supply chain management by offering customized solutions with well maintained stocking system for business inventory and orders.

5. Sustainability & Green Properties:

With growing awareness about sustainable properties and ecological concerns, people nowadays are shifting their concerns and ideology in buying green properties for real estate investments. This paradigm shift has witnessed that green properties not only benefits the ecosystem but also returns long term profits in real estate investment. Due to the reduced maintenance and operation costs, green properties attracting more buyers gradually towards it. These properties and projects have trendy specialized features such as reduced energy and water consumption, attached waste management options which results in lowering utility bills for the occupant, and so on.

These unique elements of green properties are consistently increasing the demand and have successfully enabled the prominent financial returns in real estate investments. The major green properties in India are Suzlon One Earth, Pune and Rajiv Gandhi International Airport, Hyderabad. These infrastructures propel the green properties structure, to contribute viable and sustainable environment aiming to conserve energy and reduction in green house gases. They are ensuring enhanced indoor environment and quality of life by offering eco-friendly infrastructure.

6. Rental Homes & Properties:

Despite rental homes are old concept in real estate industry, yet this old concept have new ideologies. Since a few days, business potential of rental investments is flourishing again. The days are gone where there is a misconception of considering the home rentals are not net worthy allegiance. Today, post-pandemic, the real estate investors are realizing the actual worth of rental business, as it is most feasible source of profit when it is implemented determinedly. In addition, the rise of nuclear family concept and increased activity of relocation of working professionals to urban cities is further generating a massive growth to rental housings in real estate market with high profitable returns.

Apart from the financial benefits, home rentals greatly help the migrated people in metropolitan areas to escape from high costs housing properties such as flats in high-end apartments. The approximate cost of buying a flat in apartments end up costing Rs.25-35 lakhs in Bengaluru. However the rate of rental houses starts from Rs.9000 in the same area. 99acres, NestAway and NoBrokers are playing efficient role in providing home rentals for people in lower rental and utility fee with additional options like allowing the occupant to buy the rental housing after considerable period of time with reduced taxes.

7. Smart Buildings:

Smart Buildings

These days smart buildings with technological advancements dominating the real estate industry. Earlier the usage of technology in commercial real estate business was comparatively less, but now-a-days the emergence of science and technology is smartly contributing in construction of more and more smart buildings in order to be safe and secure. Today, being smart, safe and secure matters.

So, this mind set is attracting the buyers and stakeholders to buy and invest immensely on smart buildings. Moreover, people prefer technological benefits such as allowing the tenant to customize the automation, immediate actions of real time data and enhanced smart security systems in the forms of smart doors, alarms, CCTV integration and more. Therefore, the corporate world and Indian community is showing increased interest in investing in smart buildings which ends in high profit returns to real estate investors. The 42, Kolkata, Indira Gandhi International Airport, New Delhi, Infosys Software Development Block, Mysore, DLF Mall of Noida & Chhatrapati Shivaji Maharaj International Airport (CSMIA), Mumbai are few greatest examples for smart buildings in India.

"Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world " – Franklin D. Roosevelt

To sum-up, the commercial real estate is prominently evolving and changing. The accelerated growth and development will attract huge investments towards above mentioned trends in real estate industry. Indian real estate industry is expected to hit US$ 1 trillion in market share by 2030. By staying up-to-date with latest conceptions and trends will surely open the doors for numerous opportunities in real estate industry for investors and stakeholders.

Considerable knowledge about the recent trends makes the investors to take right decisions in investing and to confidently & smartly compete with the competitors in the market. By crossing the horizons, real estate business is rapidly booming and flourishing its position and standardizing the ideas with more innovation and creativity. Recognizing the advancement, the consumers are very well aware of updated information about real estate industry, therefore the real estate builders and investors are all set to hit gears and start a ride of economic development wave ahead.