The commercial realty sector is booming and showing a higher growth trajectory in the last decade. According to Outlook India, it has attracted equity investments worth over $15.4 billion since 2011, as revealed by a Knight Frank report. As a result, India’s commercial real estate sector has been one of the options that big investors have.
However, just like most of the businesses, the real estate sector also witnessed a dip in growth during the first wave of coronavirus. This was pretty obvious for the commercial sector as most of the businesses were closed. But the post covid recovery rate is showing great results.
Because of the pandemic, a lot of companies, not only in India but in different parts of the world, have completely adopted remote working. In the long term, the trend of remote work somewhere has some disadvantages. Therefore, undoubtedly, commercial real-estate has seen a growth decline in the last few years.
If all the employees of a company work remotely, it will surely face several difficulties in team-building, reporting, time-management and a lot of other factors. So, there a still a lot of chances for the commercial real-estate sector to regain its charm.
India’s real-estate sector critiques have predicted that the world will see quite a few changes in the way this industry has been working.
Advancements for the construction companies
The construction companies are not working the same way they used to. Gone are the days when the only major requirement for construction companies was more and more labourers. Now, the construction work that we witness is a fusion of technology and the workforce. We see 3D printing, smart wearables, pulsed radar object detection, immersive technology and radio frequency identification, drones dedicated to construction work, etc., at construction sites.
This trend will continue to grow and the need for the human workforce will decrease over time.
Ease of business resulting in more startups
The demand for office spaces will continue to rise. Why? Because the government has been promoting small businesses with several policies. More emphasis has been put on ease of doing business. As a result, a large number of startups are emerging. All of this is eventually helping the real estate businesses.
MNCs have great options
If we talk about South Asia, MNCs consider India as a goldmine to settle their businesses. Several factors support this argument. One of the major factors is that India is a great potential market for most of the business types. Other than that, the land and labour in India are much more affordable for MNCs than other developing South-Asian countries.
In its Real Estate Industry Analysis 2020, the Indian Brand Equity Foundation has predicted that the real estate sector in India will likely reach $1 trillion by 2030. Undoubtedly, the MNCs will play a major role to prove this analysis true.
Surely, the MNCs will continue to add value to the commercial real estate market. They always look for popular hotspots where great footfall is witnessed and the ease of doing business is more. If we talk about Ludhiana, the areas near the Railway Station, where Naulakha Trade Centre is located, is a perfect location for MNCs.
Summing up
Though the pandemic has affected real estate businesses, the future is still predicted to be bright. For a long period of time, commercial locations and real estate have been the safest options for investment. In the future as well, the conditions will remain the same and investors will continue to put their money into the commercial real estate market.
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