Trends in Commercial And Residential Real Estate For 2022

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Sanya Aeren, Chief Advisor, Marketing & Communications, Berkshire Hathaway HomeServices Orenda India shares her perspective on the real estate industry will be reshaped through the adoption of emerging technology this year. With the emergence of the new COVID variant-Omicron spreading rapidly, the challenge of collaborating remotely without the option of face-to-face meetings, and other constraints in such unprecedented times, real estate players have already started embracing advanced technological solutions that will radically transform the residential and commercial real estate paving way for a bright future. Building Management System with IoT Many of the daily activities people perform at their homes and workspace are now being automated at the tap of a finger. The use of sensors and intelligent building management systems are helping in transitioning towards “smart homes” and “smart offices.” BMS uses occupancy data to efficiently distribute energy to reduce power consumption, detect the indoor temperature automatically and adjust it according to the occupant's movement, enable property owners and tenants to monitor the safety of the building, and identify places where people work based on their foot traffic to avoid congestion. Virtual and Augmented Reality is the future A millennial-like feature, virtual reality makes the process of buying and selling a property more convenient and immersive. With Covid-19 spreading rapidly and restricting movement, it is difficult for the buyer to inspect various properties. However, with virtual reality as an evolving technology, a potential buyer can get a realistic and detailed view of the property and make purchase decisions from anywhere in the world, thus saving time and cost of visiting multiple properties. Moreover, Augmented Reality is being used to virtually stage a property by digitally adding furniture and accessories to the space and enhancing the buyer’s experience. Blockchain-based technology is highly secure and convenient While blockchain is still a new technological trend for the real estate industry, it has immense potential to transform the sector in the future. To curb cyber-security frauds, ‘smart contracts’ are fully encrypted blockchain-based contracts that store property transaction data, signed digitally, and stored across all the computers in the network with an identification code. Although the synergy between “Blockchain” and “real estate” is seen less often, it will certainly be one of the most exciting trends to look forward to in 2022. Data Centers India's shift to a "digital economy" has tremendously increased the space required to set up a data center as businesses began redesigning their digital infrastructure to accommodate the new work-from-home environment soon after the onset of COVID-19. Emerging as an alternate real estate asset class, the demand for data centers is growing exponentially with regulatory and national policy initiatives, expanding social media users, and large enterprises in the fintech, pharmaceutical, e-commerce, education, retail sectors, etc. all moving online. Last-Mile delivery in Warehousing The year 2020-21, characterized by the pandemic, has impacted the growing reliance on e-commerce delivery solutions and accelerated the trend of online shopping. The growth of the country's e-commerce sector has triggered a massive surge in warehousing and logistic facilities. The need for quicker delivery and inventory storage, large e-commerce players like Amazon continue to contribute significantly to warehouse growth. Co-working spaces With subsequent waves of the Covid-19 since 2020, companies have been forced to close their offices worldwide and switch to flexible office spaces and hybrid models not only in tier-1 cities but in tier-2 cities as well. Flexible workspaces are in demand not only because they match the “new normal” but also because they offer businesses the opportunity to reduce costs, increase productivity, ensure employee well-being, and corporate profitability. The co-working sector is expected to shape the demand trajectory of the industry in 2022. Moving Towards Sustainable Development Environment, sustainability, and corporate governance are expected to pave the way for the development of the Indian real estate industry. The real estate sector is incorporating more energy-efficient practices into its processes and constructing environmentally sustainable buildings. Buyers are willing to pay a premium for green buildings to balance ecology and achieve a prosperous future. A focus on certifications in the construction sector such as LEED, IGBC, GRIHA, and BEE and promotion of advanced technologies to reduce CO2 emissions and battle climate change is the way forward. A look at Residential Market Trends Recent housing market trends show that prices are rising in most countries and causing a supply shortage. With the revival of the economy, low mortgage rates, and employment generation, there has been a massive spike in the demand for recreational spaces, holiday homes, farmhouses, etc. As people continue to take advantage of work-from-home opportunities, homebuyers are searching for luxurious and convenient homes in suburbs to improve their quality of life and escape the chaos of nearby cities. Robust growth in residential real estate sales is expected to continue in 2022 as potential homebuyers' preference for larger homes and improved amenities continues to be high. While the industry is still adopting new ways to not only organize important information but also analyze customer behavior, it is anticipated that real estate professionals will switch to using Customer Relationship Management (CRM) systems, analytics tools, and advanced business platforms to simplify business operations and maximize customer satisfaction in 2022. It will be a year of continued growth in demand for multi-purpose homes as people favor hybrid work models. As businesses continue to look for ways to lower costs, technologies that streamline processes, centralize information, and increase efficiencies, innovative solutions are the key to gaining a competitive advantage and revolutionizing the industry in the coming years.