The pandemic has developed an unusual health crisis that has disrupted businesses over the world. The commercial real estate sector in India has also seen a significant shift. The industry that had witnessed constant growth with net absorption touching 46.5million sq ft in 2019 came to a crunching halt due to lockdown during the pandemic.
The Pandemic has brought a considerable change in the real estate sector, especially in commercial properties. Real estate investors’ preferences have changed and are moving towards a wealthy and prosperous lifestyle in the new normal.
The commercial sector has always been considered the safest investment choice, and now Covid has further accelerated the demand for commercial properties, including retail and office spaces. The commercial sector is increasingly gaining traction from potential buyers, including corporate leaders, I.T. developers, retailers, etc., due to higher return assurance, guaranteed and steady returns on their investments.
The Pandemic has also pushed developers to rethink their approach and accept the evolving choices of modern commercial property buyers. Properties with ample open space, modern amenities, including workout zones, meeting areas, and other offerings, are in more demand. Many factors have affected the demand for commercial properties: property location, ticket size, designs, new-age technology with amenities.
Pandemic has accelerated some trends that have affected the demand for assets across domains. Hospitality-related properties and short-term leases will take a hit as corporate travel is hurt, and there is no chance of getting back anytime soon. Consumers are also adapting the commercial investment for warehouses and retail spaces. The Pandemic has also seen a deliberate rise in co-working spaces rather than big corporate houses.
Hence, while visualizing the evolved picture of the real estate sector, investors are revisiting and altering their strategies. Commercial Real Estate has been evolving into a much more mature industry. The industry focuses on value propositions like well-connected locations, finer details such as transparency and good customer experience. With the need for contactless magnifying, the significance of digital business models backed by good content and analytics capable of offering uniquely tailored offerings helps reshape the industry.
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