Key Commercial Realty Trends in the New Normal
With two years into the pandemic, the commercial real estate sector is gaining burgeoning demand as the world is getting back to normalcy. According to industry reports, compared to the volatility of 2021 of the second wave of the pandemic, the commercial real estate sector in the country would have a more stable business in 2022. Additionally, with economy back on track after two years, the commercial real estate is poised for a potentially disruptive transformation. Below are some of the key trends that will take shape in the industry: Tier II & III cities: Upcoming hubs for commercial realty With the urbanization culture seeping into the Tier II & III cities of the country, developers & flex workspace operators are eyeing these markets to transform them into the future of commercial real estate in India. Furthermore, the government is also determined to accelerate growth in the Tier II & III cities by introducing Atmanirbhar Bharat and Startup initiatives. Therefore, with rapid infrastructure, these cities have become the new employment hubs supported with hybrid working and reverse migration trends. In view of the same, many corporates are leaving their long-terms leases and are partnering with coworking spaces. Since flexi spaces don’t require a company to take up the entire office but just book a specific number of seats basis their workspace needs, the shared workspace model suits the modern way of work. According to the Awfis Workspace Survey conducted in 2021, 58% of the participants are in favour of the hub and spoke model, expressing an interest to work from the nearest office or coworking space provided by the employer. While coworking spaces are equipped with facilities aligned with the new reality, it also provides an office-like environment for employees across the country. Boundaries merging between commercial spaces As the lines between professional and personal lives have merged with the current hybrid work model, all commercial spaces have come together to co-exist. Since, people enjoy the comfort of having all amenities in one location like restaurants, gyms, shopping arenas, offices, etc, there is a rapid adoption of mix-use developments. Therefore, going forward, one’s next office could be in shopping mall or a hotel. The integration of co-working spaces with hotel spaces is quickly gaining momentum. Leading co-working spaces are partnering with hotels to cater to the discerning needs of today’s clients. Therefore, multi-services in a commercial space not only attracts a younger audience but provides huge opportunities for real estate owners to generate more revenue. Automation of commercial real estate As building owners are working towards responding to new behavioral patterns of customers, they are focused on providing safe spaces with integration of prop tech. As more people return to work in the next few months, developers & coworking operators are redesigning the space to accommodate touchless access, automated attendance, voice-controlled features to avoid maximum surface contact and ensure maximum safety of employees. New features like sensor-activated disinfectants, retina entry scanners, digitalized ventilator systems, etc in commercial real estate is customers with technology and healthcare. The same is aiding to shift in attitudes and preferences of younger generations for hybrid workspaces that includes work from anywhere or work from a co-working space. Therefore, the silver lining amidst these challenging times is that coworking players are emerging as winners in providing optimum support to large enterprises, startups, freelancers, etc in enabling their businesses.
Tags : Amit Ramani CEO & Founder Awfis Commercial Realty Trends Atmanirbhar Bharat Startup initiatives Tier II & III cities prop tech Awfis Workspace Survey