Trends in commercial real estate that will dominate 2019

India’s real estate industry has been through a few jolts over the past few years in the wake of demonetization, the Goods and Service Tax (GST) and the Real Estate Regulation and Development Act(RERA). Despite this, the commercial landscape is evolving at a stellar speed, giving way to some positive outcomes. 

Several factors are contributing to this  growth trajectory,  some are government boosted, while others are the evolution of demands when it comes to office spaces, corporate responsibility and the expansion of digital retail.

Acche Din

The ‘Make in India’ initiative and the implementation of RERA has led to higher transparency in the sector attracting FDIs in the commercial real estate business. This growth is predicted to soar higher as institutional investors see the potential in India’s future.

Trust in India

The emergence of REITs will make up for the fiscal deficit in the real estate sector. Through this new avenue, large investors as well as individuals can invest in the sector - leading the way to reducing costs constraints on developers for projects. 

The REIT is predicted to ensure demand in sectors like manufacturing and IT institutions. 

The evolution of the workspace

India’s startup ecosystem is giving rise to a new breed of entrepreneurs and with it, a rising demand for efficient spaces that are affordable and offer the best amenities. This trend has set in motion a reconsideration of traditional workplaces amongst many companies - giving rise to the need for more flexible, dynamic and cost effective solutions. 

Additionally, with more and more brands opening up for collaborations, there’s a growing requirement for need-based spaces that are creative, agile and act as a ground for networking and marketing opportunities.

Get it Certified 

Basic amenities are a thing of the past. More and more corporate giants are demanding spaces with top of the line ‘WELL certified’ features that meet the company’s green needs and ensure wellness for its occupants. Today, more than ever, companies are accountable for their effect on the environment and therefore are pressurized to put systems and processes in place to reduce their carbon footprint. This is a trend that we are seeing on a global scale.  

Digital all the way

Technology is paving the way for change in every industry and commercial real estate.  The advent of Artificial Intelligence(AI), drones, chatbots, virtual reality and Augmented Reality (AR) is bringing efficiencies and enhanced safety and productivity to the sector. 

There are new tools being employed on and off the job site. The use of improved BIM products, innovative Internet of Things(IoT) implementations and emerging machine learning applications have created possibilities for firms to rise above the difficulties facing the industry. By enabling the creation of complex three-dimensional models, BIM tools have given construction firms the power to plan their projects down to the last screw before ground is ever broken. New versions of BIM applications are going further by offering even more impressive capabilities.  

Four and even five-dimensional versions of BIM products are growing in popularity, with the ability to link components within the model to information related to their cost and estimated place in the construction schedule. This level of detail allows firms to plan costs and schedules while decisions about architecture or equipment acquisitions are made. The BIM model can then be shared with investors as well as all key project stakeholders, without needing to create separate reports or presentations. 3D BIM capabilities are already making the application a staple in the construction industry, and the firms that use 5D BIM and beyond have an extremely efficient tool at their disposal. 

Drones or Unmanned Aerial Vehicles (UAVs), are also being deployed during construction to capture live data as well as useful photographic images and videos. The details are then shared with stakeholders, making it easier to share progress on projects. 

The rise of E-commerce India

As India’s online retail foothold gets stronger, the demand for warehousing spaces will continue to increase. With the current factors and policy reforms, this sector can expect a steady growth in the year to come.  The automation of material procurement is also becoming the norm through the use of intelligent tools that evaluate best pricing options.

Improving productivity and efficiency is critical for firms looking to thrive in the coming decade, and emerging technologies have proven to be vital tools for promoting both. They have also inspired new practices that are being adopted by larger construction firms, which makes their impact even greater. Expect to see the increasing prevalence of these techniques and technologies in the commercial real estate sector in India. 

Overall, commercial real estate business will continue to propel the sector as foreign investors keep a close keen eye on India’s potential. With the right reforms in the upcoming budget, expect to see an upward growth in this area of the economy.