Real Estate Now: Learn, Unlearn and Relearn

The cyclical nature of the industry and the current challenges have presented newer focus areas and a fresher approach to ride the tide. Data centers, logistics, and warehousing, affordable housing among others have gained the attention of stakeholders. In fact, all major segments – office, retail, residential, and industrial have adopted newer approaches that will lead us to 2021, some of which are stated below.

Less is more: Optimizing spaces with technology at the core is becoming a norm. A large expanse of office is no longer perceived as a luxury. Instead, efficient use of spaces offering both casual and formal interactions with collaboration as a central theme will continue to stay. Offices will continue to be shared and activities based on employee wellness will gain importance.

Focus on sustainability:  There have been conscious efforts to adopt green practices by organizations as they expect to strengthen going forward. Companies are now laying more emphasis on sustainable development, building offices that are environment friendly and cost-efficient. Such workspaces provide a conducive and healthy environment that helps reduce the carbon footprint. As a result, both the demand and supply sides are expected to re-align keeping in mind compliances and other requirements. 

Customized offering and asset management: Both product and service offerings shall be highly customized going forward creating value for occupiers that shall differentiate the providers. As business-continuity plans become important, the real estate portfolio is undergoing alterations with the need to be more flexible with customized space requirements. 

Reassessing physical and digital divide: The omni-channel strategy nowadays is tilted towards e-commerce or digital platforms owing to limited footfalls. However, the need for a brick and mortar store has not diminished but rather being reassessed. In the post-COVID world, enhancing customer experience will be essential and the retail sector shall undergo a new wave. 

Value purchasing: The re-aligning of the residential market with a slew of policy changes to enable buying and completion of projects shall attract both investors and end-users. The convergence of expectation of buyers and sellers as well as the rising optimism of higher economic growth shall spur activity not limited to affordable housing but through all categories.  The ownership in commercial assets via Real Estate Investment Trusts (REITs), that expects to become more pronounced in 2021, shall also result in institutionalization and formalizing of the sector.