Young Indian consumers are driving interest in sustainable mobility solutions like electric vehicles. Interestingly, this swift transition is becoming quite prominent beyond Tier-I populations, thanks to changing consumer preferences and government measures.
Currently, Tier-I cities like Delhi, Karnataka, and Mumbai are leading EV adoption, but Tier-II and III cities like Jaipur, Surat, Lucknow, Thiruvananthapuram, and Coimbatore are quickly catching up to become EV hotspots. It’s fascinating to see how demand for EVs is also fuelling the demand for advanced charging infrastructure and properties that host them.
As more EV users look for convenient charging, properties with charging facilities are quietly registering an increase in their valuation. However, we know to support EV adoption, the nation needs to address structural challenges in charging. From a business perspective, this gap presents real estate and charging business opportunities in Tier II and III cities. Let’s find out how EV charging can boost property demand and valuation beyond Tier-I cities.
Impact on Real Estate Demand
Both commercial and residential properties that integrate EV charging facilities on their premises can benefit in these ways:
Surge in Demand
Young urban populations are already moving towards sustainable living practices. Logically, properties with green building features like EV chargers will enjoy more demand than traditional structures. Similarly, properties closer to public charging stations will be high in demand and valuation due to the convenience and sustainability they offer residents and tenants with EVs.
Opportunity to Increase Valuation
Property developers and real estate investors are taking note of this demand shift, and in response, refocusing their interest on properties with sustainable features like EV charging. And why not? Reports say that properties with such amenities see a 3% to 10% surge in valuation. Notably, competition for sustainable amenities is somewhat less in Tier II and III cities than in urban metros. This is why now is the right moment for developers to pioneer EV charging facilities and make their properties more desirable, enhancing their valuation.
Additional Business Opportunities
We have already established that integrating charging infrastructure into properties can enhance tenants’ convenience. However, it can also bring fresh business opportunities. For example, if I were a property developer, I’d like to build a future-proof property. Judging the popularity of green buildings with sustainable features and amenities like EV charging, I may park money in them. Besides this, I’d seek partnerships with Charging Point Operators (CPOs) to monetize charging stations or facilitate collaborations with charging infrastructure companies, OEMs, and advertisers. Younger consumers are open to paying a premium to lead a sustainable life. This approach to living can offer developers a chance to innovate their properties and earn more.
Chance to Attract Corporations
Interestingly, today, tier-II and III cities are experiencing rapid urbanization. As a result, a significant population as well as companies are migrating to them for better living conditions and a chance to break out in a less competitive environment. This is directly benefiting their real estate market and accelerating development. In addition, sustainable features like EV charging infrastructure are among modern India’s urban planning goals.
Moreover, sustainability is a key component of many CSR initiatives. So, commercial properties that advance India’s sustainability and net-zero emissions goals are more likely to win CSR-driven big corporations as tenants and enhance their clientele. If more developers take a hint and install chargers on their premises, they will automatically succeed in attracting big tenants.
Hence, we can say that EV charging infrastructure can boost property value in tier-II and III cities. However, first, we must solve the challenges that hamper accessibility to charging infrastructure. I believe in this regard, the efforts of the government, real estate players, investors, and CPOs would be important. Their contribution can help strengthen charging infrastructure, boost real estate value, and support urbanization beyond tier-I cities.
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