/ -- RICS India, in association with its knowledge partner Colliers International India released a report 'Seizing opportunities: Making CRE agile in a dynamic business environment' at the RICS Corporate Real Estate Summit 2019 in Bengaluru. The RICS-Colliers report peaks into the future to explore how occupiers' preferences are changing and how the industry can seize opportunities.
"The next decade will usher in new formats of workplaces, with landlords emerging as wellness creators, where occupiers amalgamate workplaces and technology to increase productivity at workplaces," says Ritesh Sachdev MRICS, Head of Occupier Services, India and Managing Director, South India at Colliers International.
In 2019, Colliers forecasts investments into real estate to be about USD 6.5 billion, with office investments garnering the highest share. Investors, both foreign and Indian, are buoyed by the commercial office sector, which is witnessing robust office demand. Investors are looking to bundle up assets and list them as REITs, capitalising on the solid demand. In 2018, Colliers noted gross absorption of about 50 million sq ft across major cities in India. Apart from the mainstream real estate assets, the company believes that alternative asset classes such as student housing and co-living are seeing increased traction from investors. We believe that these alternative housing models can, in a way, assuage the slowdown in the residential market.
"In an ever-changing world, where there are several disruptions taking place both locally and globally, the ability of the CRE sector to adapt to change and overcome challenges, is an indication of just how agile businesses are. Only those businesses that move with the changing socio-economic and political environment will be able to survive and perhaps thrive. The Indian market is in the midst of a slowdown, with the residential sector most impacted. While we don't have a full-blown recession currently, as we did back in 2008, the impact on the CRE market though not currently felt, will only be determined on how deep the slowdown spreads. Additionally, there are factors such as adoption and use of technology, changing occupier requirements and focus on wellness and experiences that are forcing developers and employers to rethink strategy and facilities. This RICS-Colliers report sets the tone of what's changing, and how CRE may just continue to be the bright shining star of the built environment sector," says Nimish Gupta FRICS, Managing Director, South Asia, RICS.
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Commercial office sector on a strong footing
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Flexible workspaces fast gaining ground
GICs continue to ride the tech wave
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Telecom 5G
Electric Vehicles
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