Certain trends in commercial real estate are likely to hit the Indian market. With the approach of the new year 2019, several real estate industry experts predict and uncover many new trends which will potentially bear good returns. As a couple of months have already passed by, some predictions and trends have worked and resulted well. Here is the complete list of trends in commercial real estate as per the experts, from investing in the commercial space to reinvesting in the strategies.
1. Continuity in the boom of Industrial Real Estate
The e-commerce sector sees a promising upward trend which has directly impacted the Industrial real estate. A huge number of online retailers are occupying industrial space with an aim to accommodate logistics and warehousing. As a result, rental rates will increase with each year passing by. Hence, for the ones who are on the lookout for rental space should do their research well and consider options before finalising on a space. Make sure to find out an address that will serve a long term to your company along with facilities and benefits.
2. Tier II cities making it big
Ever since the Tier II cities have witnessed rapid infrastructural development, with some declared as smart cities, the growth of the commercial real estate has risen beyond the confinement of the major cities of India such as Delhi, Mumbai, and Bangalore. Tier II cities such as Ahmedabad, Chandigarh, Jaipur, Kochi, and Coimbatore are now giving tough competition to these A grade cities in terms of price and demand for properties. Corporates have expanded their offices in Tier II cities as well, with the same facilities and no pollution, traffic, and congestion. The smaller cities are now attracting investors, and several IT Parks and Special Economic Zones (SEZs) are being developed along with the support from the government.
3. The role of technology is dominant
Technology has undoubtedly enhanced work efficiency in the real estate industry. While the use of technology in commercial buildings and offices are notably high, the developers are at the same time laying special focus on adopting eco-friendly measures for environment protection. Smart lighting, water conservation, solar energy, and rain harvesting are some of the ways technology has paved the way to sustainable process. On the security front, the buildings are undergoing fire prevention and fire management provisions. The increasing proposals for automated systems, artificial intelligence and robotics are further expected to gain momentum. Such smart features will command better rentals and longer lease tenures.
4. Modern and contemporary designs are a big shout out to office spaces
The demand for quality commercial office space is likely to continue for many more years. The companies are adopting new trends for office spaces around the world for the wellness of the ambience and benefit of the employees. The trend of co-working spaces and professionally-managed spaces is also shaping up the commercial real estate industry with the major contribution given by metro cities such as Mumbai, Delhi/NCR, Bangalore, Hyderabad, Chennai, and Pune at present.
5. Pre-commitment to the corporate occupiers
While the office spaces are still in the under-construction stage, the developers are increasingly making the pre-committed deal with the corporates who wish to own the space. Such commitment levels have witnessed a rise, considering the quality and promise developers are able to deliver.