Key Highlights:
- The CRE market will be expecting growth and getting ready for a post pandemic recovery with the roll out of vaccines in India.
- It is important for CRE leaders to understand and analyse the implications of occupiers redesigning their work culture and adopting new work models on the industry.
- The latter half of 2021 brings with it a lot of new opportunities for the CRE market with respect to the strategies and planning that is required for the evolving nature of the industry.
- Going ahead, occupier’s health and wellbeing will be crucial to future CRE strategy and investments. Developers need to reinvent their strategies accordingly, although the response to restructuring their portfolios varies from developer to developer.
- There is a need for CRE developers to be at the forefront of technology. In a rapidly changing market and shifting occupier preferences, it is imperative that they embrace technology to digitize their business processes.
- The speculative nature of CRE which had been aggressive has tapered down completely and speculative capital chasing under construction projects have also gone down.
- Traditional sources of capital – banks and NBFCs, will be constrained at least for the next 24-36 months.
- From an investor’s perspective, they will think through before they deploy capital to consider the contingencies, they have faced in the past 12 months.
- The growing demand for more sustainable, smart, and flexible office space options among occupiers will have an impact on the demand for commercial real estate, as corporates consider a hybrid work culture to reduce excess space from their portfolios.