Should businesses continue to operate out of old jaded buildings at the heart of the city? Is it more convenient for the commercial activities to move to the upscale swanky offices on the periphery locations where the cost of doing business per square feet is much lesser? Is ‘Walk to Work’ only a city center reality across the urban pockets? These are the subjects of serious discussions across the built environment of commercial real estate world over, finds Track2Realty.
Browsing: Commercial
Real estate in general and its future growth in particular is defined by its demand drivers. It is relatively easier to forecast the demand drivers in the residential sector. Reason being that the economic activities indicate the migration of the workforce and hence inherent need for housing. However, to forecast the emerging economic activity, both sector wise and region wise, is more often than not guesstimate, finds Track2Realty.
Across the world the commercial real estate, most notably the retail and office spaces, have been hit the most due to Covid-induced new normal. It is hence being debated as to whether commercial real estate would be able to reinvent itself to remain relevant in the post-Covid world where the Work From Home and online shopping threatens to eat up the market share of till-recently lucrative business models of retail and office space. Track2Realty explores the need for innovation.
Much before the outbreak of pandemic Coronavirus, the Indian real estate sector battling with the consistent slowdown was looking up to the turnaround catalyst. While the success of REIT had given it a glimmer of hope, the fund managers had their eyes set on a segment that has the potential to not just spread across the country but give a piggy ride to other segments as well, most notably to the housing. Track2Realty finds the warehousing & logistics to emerge as the mainstream real estate in the last few years.
OYO Workspaces forays into Chennai with the launch of coworking brands – Innov8 and Workflo in the premium and budget categories. Incentivising start-ups, entrepreneurs and large companies to switch to managed workspaces, Innov8 offers seats starting at INR 9000 per month while Workflo offers seats starting at INR 5000 per month.
Co-working is gaining immense popularity in the new-age workforce providing hassle-free ways of working and networking. Innov8’s new centre is located in central Delhi, attracting the best minds to collaborate and work together. The new centre offers a dedicated desk starting at an affordable price of INR 10,999/- per month and with the recently launched flexi pass at INR 2,999/- per month and a day pass at INR 600/- per hour for a hot desk or a meeting room.
The greener pastures are mostly defined with numbers and not execution capabilities or business model. For example, the absorption of office space has been upwards of 40 million square feet per annum for the last 3 years. The overall sentiments in this segment look bullish with PE investors also putting in money. As a matter of fact, even in retail real estate the PE investors are bullish and exploring even the Tier II cities having malls with good footfalls, brand mix and strong sales. This is what is enticing the residential developers looking for both the buyers as well as the capital investments.
Bottom Line: Come budget and all discussions and debates around…
The Government’s decision to allow 51% FDI in multi-brand retail and 100% FDI in single-brand retail under the automatic route was a definite crowd-pleaser that attracted giants like Walmart to make forays into the country.
JP Morgan will take up 830,000 square feet across 16 floors within one building on the Knowledge City campus, making this deal the single largest real estate transaction in Hyderabad.