As corporates get back to working from the office, the demand for space is steadily increasing, resulting in stabilization of rentals and a drop in overall vacancy levels.
The Real Estate Industry of India is one of the largest sectors contributing to economic growth. The Commercial Real Estate sector has started witnessing a healthy increase in demand and is expected to maintain its upward course throughout 2022.
The initial spread of COIVD-19 in India led to a national lockdown, followed by the second wave which led to further disruption, and one of the evident results following this was the WFH (work from home) culture.
One of the major trends that is emerging post-pandemic is that occupiers are now seeking flexible and agile workspaces, therefore resorting to a hybrid work model. There is also increased focus on integrating technology with real estate to support a flex work model, which in conjunction with India’s progress towards becoming a digital economy, has led to a boost in demand for the Data Centre space in the country.
With the acceleration of digitalization in India due to the pandemic, and with India becoming one of the largest Unicorn hubs in the world, start-ups are slated to be amongst the most active and largest occupiers by 2024. Given the inorganic nature of the growth of start-ups, demand for flexible offices also continues to increase. The recent Colliers ‘Startup Scale up’ report provides in-depth insights on the Indian start-up growth and trends.
The e-commerce and logistics industry has also seen a significant spike as the pandemic has accelerated online purchases and deliveries at an extraordinary rate. Some more sectors that have seen a boost and continue to grow include healthcare, remote working tools, E-learning and OTT platforms.
The evolution of hybrid work and employee preferences has begun to push employers out of dense CBD markets into larger, cost-effective locations. Additionally, the strife in quality that followed the pandemic has led to employers following the demand for spaces with attractive amenities and flexibility. Workspaces are feeling the need to focus more on employee health and well-being and are becoming increasingly conscious of their ESG (Environment, Health and corporate Governance) standards.
Smart Buildings and Wellbeing will be driving the future of workplace design. Many firms have already started implementing innovative ways to support employee wellness and promote getting back to work. Developers are also increasingly conscious of wellness standards while designing, constructing and upgrading buildings.
Despite the hiccups, the physical office is by no means a thing of the past. It is evolving with each passing quarter and the managed office business is growing at a rapid pace. As corporates get back to working from the office, the demand for space is steadily increasing, resulting in stabilization of rentals and a drop in overall vacancy levels. 2022 comes as another positive year for the office industry as this momentum continues.
About the Author:
Neha is a commercial Leasing specialist with 12+ years of experience in end-to-end Transaction Management, Tenant Representation, Key Account Management and Strategic Planning. She has robust connections with Occupiers, Developers, co-working and Enterprise office players in North India.
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