Looking Ahead: CRE landscape 2021

Anuj Puri, Chairman, ANAROCK Property Consultants Private Limited said that commercial real estate sector is on the path to recovery and remains optimistic about the industry’s future. In an interview with Awfis, he shares some of his insights on how the commercial real estate is faring currently and what’s next for the industry. Excerpts:

According to you, how has the CRE industry been reinventing itself in 2021?

CRE developers have been redesigning their strategies to combat the uncertainties brought about by the pandemic. As sanitization, employee safety, and hygiene are taking center stage, the CRE industry has been focused on making their portfolios resilient and taking measures to survive the pandemic. Smart buildings, automation, and PropTech have been redefining the CRE industry making them immune to not only the outbreak but any other shocks that could emerge.

What are some of the key trends to watch out for in the commercial real estate industry?

In addition to the trends listed in the previous section (panel discussion), a few key emerging trends that will shape India CRE in 2021 include –

Change in office usage:  With the hybrid work model gaining momentum, the largest part of the workforce of any organization is likely to alternate between in-premises work and work from home. This will dramatically shift the way office space is traditionally used.

• A recent survey by AON indicates that 85% of employees from the surveyed companies are willing to “work remotely – fully or partially”.
• Hub and spoke office model may emanate with the company’s city center headquarter acting as a hub and having multiple “spoke” locations closer to where their employees live.

Occupier-driven market: This year will be driven by the occupiers with CRE developers offering innovative and flexible solutions in the market to infuse demand and to meet the evolving needs of the occupiers.

The rise of PropTech: The CRE industry is in for a complete revamp with PropTech booming and changing the way one looks at property investments. Many occupiers can view multiple properties from the comfort of their homes with new-age tech-enabled platforms. In an ever-changing digital landscape, the rise of PropTech is a trend to watch out for which is on its way to increase the value of the CRE industry.

How can CRE adjust to the new realities and equip itself suitably?

The growing demand for more sustainable, smart, and flexible 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. There is a need for CRE developers to be at the forefront of technology. In a rapidly changing market and shifting occupier preferences, they must embrace technology to digitize their business processes.

What are the opportunities that lie in store for Indian commercial real estate in the current scenario?

Even with the pandemic and its many challenges, the future of Indian commercial real estate is full of opportunities and looks bright. The industry is poised for revival – thanks to speedy vaccination drives, gradual recovery of the economy, new government initiatives, and ease of restrictions. New favourable government initiatives have been introduced that pose a great opportunity for the industry in India. Along with this, digital up-gradation, and the emergence of PropTech is another exciting opportunity that will ensure the smooth functioning of projects and bring about new reforms in the industry.