.png)
Residential
Introduction:
Residential and commercial real estate in India experienced a phenomenal response in the year 2021. The market was already picking up steam as demand for residential units and plots surged following the nationwide lockdown, and property values saw a jump in demand as well as prices per square foot. Apart from commercial districts that meet inhabitants' daily or weekly needs, the corporate world has begun to indicate interest in expanding operations as a result of improved connectivity and anticipated economic growth.
This year, we might see more money pouring into commercial real estate. In 2022, there will be an increased demand for acceptable workplaces, freehold commercial and residential properties, and unique concepts that will maximize investment returns.
According to Knight Frank's 2022 Outlook Report, the residential and commercial real estate sectors in the country would be more stable in 2022 than they were in 2021 due to the pandemic.
It's hard to realize that the year 2021 has come to an end. But, however, here we are, and it's fair to say that real estate has had a difficult year. As we approach 2022, there are a few things to keep in mind for real estate investors.
Co-working spaces
There was a significant increase in office closures in 2020, as well as a quick shift to ubiquitous remote jobs around the world. This tendency remained in 2021, but when vaccines were available, people gradually returned to work. The pandemic has served as the ultimate litmus test for digital transformation in the workplace. To allow employees to work from home, businesses have had to invest in digital skills. To ensure employee well-being and corporate profitability balance, businesses are testing innovative working methods while keeping workplace flexibility at the core. The expansion of a hybrid workforce across a number of workplace options, including flexible offices, has been the most obvious change.
Flexible workspace operators aim to expand their portfolios in the next 2-to 3 years due to a need for worker flexibility and portfolio re-optimization. Hub-and-spot models, increased financial gains, growth in the number of strategic partners, acquisition, demand-driven expansions, and a focus on technology, health, and safety are just a few of the major forces driving the adapt-to-suit workplaces industry ahead.
SCO Shop-cum-office space is another avenue for the revenue stream
The State Government's new planned colony policy has approved the groundbreaking notion of a Shop-cum-Office (SCO) plot. Developers can offer plots where buyers can build up to four levels and utilize them for office or retail purposes. These restrictions have opened a new era of commercial SCO plots. The SCO markets have been a huge success, with early investors' money growing many times in a short period of time. Regular cash flows, longer leases, and higher-income are just a few of the advantages that a prudent investor can take advantage of.
Sustainable & Environment-friendly Commercial & Residential Development
In the Indian real estate sector, environmental, sustainability, and governance are believed to be a way to success. Investors looking to make knowledgeable company investment decisions are increasingly valuing transparency and stakeholder participation. Developers are putting a greater emphasis on LEED, IGBC, GRIHA, and BEE certifications in construction, resulting in significant carbon footprint cutbacks.
Increasing demand for free-hold property
The bulk of commercial and industrial plots are leasehold, which means they can only be utilized for a specific period of time. Government agencies, such as municipal corporations and Housing Boards, have ownership rights in this case. On the other hand, the owner of a freehold property has complete control over the property. The commercial and industrial community has long sought the right to own properties in order to facilitate expansion and borrowing. To improve the ease of doing business, industrial policies must be created to allow for the conversion of leasehold to freehold industrial plots. The demand for such sites is currently great, and more will be searched in 2022.
Increasing demand for Datacenters
The tremendous digital push prompted by the COVID-19 outbreak has benefited data centers, which could still provide a yearly rental yield of 15% (about). Companies modified their digital infrastructure to meet the new work environment when India was put on lockdown due to COVID-19, resulting in a 25-35 percent rise in data center scale economies.
The Indian data center sector currently has an estimated 445 MW of essential IT capacity, with a further 290 MW planned for 2022, bringing the total capacity to 735 MW by the end of the year. Work-from-home (WFH) mandates, online education, video-based medical consultations, a surge in e-commerce, and business-related video conferencing and webinars are all driving up demand for secure data centers. Because the government is determined to make data localization essential, data centers have a bright future as well. Indeed, data centers are gaining traction as a viable new asset class in real estate.
Finally, there will be a rise in the invention of SCO concepts in 2022. These SCO plots will help entrepreneurs further their business ideas by allowing them to own a commercial area for less money and with better facilities. Astute investors are increasingly recognizing the benefits of a well-equipped environment supporting retail or office in a favorable market. Mixed-use commercial spaces will surely assist investors by diversifying their risk in their investment portfolio by capitalizing on this new developing trend.
Learn more with us at (Click here).
