The Indian real estate is evolving at a rapid pace. Touted as one of the biggest investment destinations in India, the reality market offers huge growth potential to both residential and commercial buyers. Today, its growth is also being fueled by the ever-changing corporate environment – in both Tier 1 and Tier 2 cities – which are witnessing a prompt surge in the demand for bigger, better office spaces by national and multinational companies.

Year 2018 has witnessed an increased occupancy trend in corporate real estate even from Non-IT companies, including healthcare, biotech, telecom, consultancy businesses and more. Commercial property in Bangalore is most favored by multinationals, closely followed by Chennai, Delhi NCR, Hyderabad, Pune, and Ahmedabad.

 

Indian real estate sector is evolving at a pace never seen before. With an enhanced focus on employee satisfaction and retention, new standards are being set and latest trends are evolving in corporate real estate, fueling the growth of commercial real estate sector in India.

 

With the demands still high, many real estate developers in Pune, Bangalore and other cities have shifted their focus from housing market in India to commercial developments. With this and more, the future seems promising for commercial real estate segment in India.

Here are the top 7 real estate trends that will shape the commercial real estate market in 2019:

The co-working culture has revolutionized Indian corporate sector too

Co-working or shared work spaces are no longer considered suitable for only start-ups and SMEs. Thanks to its inherent cost benefits, superior infrastructure, flexible work environment, and reduced operational costs, today a number of global players are moving out of their traditional office set-ups and are showing increased interest in co-working office spaces. This has led to enhancement of property value and better utilization of unused commercial spaces.

Corporate real estate is being propelled by technological innovations

From smart workstations to intuitive meeting rooms with tech-enabled reservations and wireless AV systems and from app-based parking systems to robot receptionists, Indian corporate real estate sector is seeing a new trend in the demand for latest and technology-powered office solutions. In fact, technology would be the most pertinent catalyst that will drive the future growth of commercial real estate in India.

Buying commercial properties in India is becoming the trick of the trade

As opposed to leasing commercial properties, today more and more companies, with a long term vision in mind, are buying properties in pune, gurgaon, mumbai, noida, ahmedabad and other commercially successful markets. This one-time investment is not only helping them save the surging renting/ leasing costs, but is also helping them build a long-term asset for favorable real estate returns.

More and more companies are partnering with co-working brands

Occupiers are partnering with co-working brands and investing in need-based office spaces. This allows them to enjoy vibrant work environment, agile work places, better networking and marketing opportunities, and cost-effective lease terms.

Space efficiency is ruling the game

These days, more and more corporate giants are becoming space-efficient. They are consolidating multiple office spaces into one to save overhead costs and boost operational efficiency. This has created an increase in the demand of bigger office spaces where staff from multiple office locations can be easily accommodated.

Well certified building concept is quickly taking over

New standards of holistic “wellness” are gaining traction in Indian corporate sector too. Today’s office goers are no longer happy with basic amenities at workplaces. Corporate giants look for better infrastructure, sufficient ventilation, improved lighting designs, and active furnishings to promote the well-being aspect among employees and boost productivity. This is slowly but steadily making it mandatory for real estate developers to seek the Well Certification for their proposed and under construction projects by meeting the green aspects of the building and ensuring the wellness of the occupants.

Extended lease terms is quickly picking up pace

Earlier companies use to lease office spaces for only 9 years, a trend that was pretty prevalent in Delhi NCR. However, thanks to increased business opportunities and growing revenue, corporate today are negotiating their lease terms and are considering extending them to 12 or 15 years. This not only helps them secure the occupancy rights but also helps them save on the surging renting prices.

Corporate companies are getting bigger and better with each passing day. To enhance their position in the market, they are focusing more and more on employee satisfaction and retention through agile workspaces and enhanced infrastructural facilities. This has opened up a new area of opportunity for real estate developers who can now drive more sales by constructing their buildings with flexible arrangements, superior facilities, and technology-enabled work places.