India’s commercial properties was affected by the spread of the coronavirus. The exploding office-leasing sector is endangered by the remote-work trend as a result of the government’s lockdown to stop the spreading of the coronavirus. The absorption of CRE, though, gained traction as the curbs were lifted. With the vaccine rolled out and lockdown just on the brink of the finish line, the second half of next year will see a total return to normalcy. Developers will prefer to have a rich portfolio of assets with the target of prioritizing areas nearer to populated hotspots.
The fifteen-minute neighborhood
With an increase in population, an increase in city borders, commuting has become a big problem for lots of citizens. According to the report, people spend seven percent of their day travelling to work, and these are globally record-high numbers. This problems gave way to fifteen-minute neighborhoods in which people live close to work. Urban centers such as Bangalore, Pune, Mumbai and Hyderabad are seeing a jump in this trend as these cities are facing the worst traffic jams in peak hours.
Development of new hubs for enterprises
The CBDs are overcrowded at the moment, and at the moment are saturated, of higher cost, and are usually older. The development of new enterprise hotspots has shifted the demand dynamics for both residential and CRE segments and has had a positive impact on the prices. This led to the booming of residential hotspots in these locations as people seek to cut down on their travelling times.
Satellite office spaces
Due to the spread of Covid-19, the idea of a satellite office is once again popular. More firms are now looking to set up a branch office outside the primary CBDs to make it simpler for their workers to get to the office after a long period of travelling to the main office. This has led to a jump in demand for office spaces in similar micro-marketplaces. The trend has also led to an jump in demand for residential properties in adjacent locations.
Things such as the availability of grade-A multiple-tenant buildings, closeness to high-density residential areas, and direct road access have added to the growth and development of micro-marketplaces. While the occupants are on the wait-and-see mode for implementing their land ideas, an increase in demand over the next few quarters is expected due to the expansion of IT and IT companies, bigger FDI and initiatives in India that may lead to an increase in the popularity of flexible office spaces. Micro marketplaces are seeing an increase in demand for commercial land, as people wouldn’t want to travel farther from where they reside.
Moving forward, it will be significant for CRE developers to monitor changing consumer trends and assess the enterprise profile of their tenants to make sure that they meet their changing needs under different economic terms.