by Rohit Pandit, Managing Director, People's Group and Chairman and Managing Director, Shuzlan Energy
In the past decade, India's commercial real estate has seen a seismic shift. Previously seen as a passive sector, it has now flourished into an active and ever-evolving marketplace. This growth can be attributed to several factors, both domestic and international. Let's delve deeper into what's steering this trend, with a spotlight on the pivotal numbers.
With projections suggesting that India's real estate sector could skyrocket to about $6 trillion by 2047, the country's economic foundation remains solid. An expanding economy has elevated the demand for office spaces, storage solutions and other business-related structures.
City evolution and population dynamics
A younger demographic, with the majority below the age of 35, is at the heart of India's urban metamorphosis. This, coupled with rapid urbanization, amplifies the demand for state-of-the-art workspaces.
Major tech firms' emergence and a blossoming startup culture heighten the need for versatile work environments. Furthermore, e-commerce's ascendancy is creating a greater demand for logistical hubs.
Initiatives like the 'Smart Cities' project prioritize urban enhancements. Enhanced transportation links and modern public transit solutions have upped commercial zones' accessibility and appeal.
Eased FDI rules have enticed global investors to India's commercial property landscape, bringing not only financial aid but also global best practices, refining the sector's quality.
The RERA framework has infused the industry with increased transparency, bolstering investor sentiment. Concurrently, the GST adoption has fostered a more business-accommodating climate.
Evolving workplace trends
The shared workspace trend mirrors India's shifting professional milieu. The growing inclination towards flexible rentals has significantly boosted demand.
Green structures and sustainable infrastructural approaches are in the spotlight now more than ever. The commercial sector's gravitation towards eco-friendly solutions is evident.
The commercial realm is rebounding post the initial Covid-19 jolt. There's a renewed preference for more spacious establishments to meet health and safety guidelines.
The Rise of REITs
By making commercial real estate investment more accessible, REITs have infused the sector with fresh funds and renewed enthusiasm.
India's commercial real estate trajectory, set against the backdrop of an expected market valuation of $6 trillion by 2047, paints a promising future. As urban sprawls expand and entrepreneurial endeavors rise, the thirst for commercial assets will remain unquenched. With consistent policy support and sector-specific innovations, India's position in the global commercial real estate domain is set to soar.