Commercial Real Estate Trends 2020
Every good investment opportunity contains risk. Especially in an economy where the GDP has been at a decadal low of 4.2% and has now been engulfed by a pandemic crisis, even the safest investment modes may turn volatile. In such a state of despair, savvy investors need to stay aware of the market trends and emerging strategies that can help them not only keep their investment boats afloat but also make well-informed decisions for future investments.
The real estate industry is in the cusp of a transformation and the past decade has played a crucial role in shaping the sector. The realty sector and its ancillary industries witnessed a series of structural reforms with advent of RERA, introduction of GST, industry consolidation, fast proptech growth, and so on, which has helped increase transparency and trust between builders and buyers.
Following the pandemic, here are the few trends of the commercial real estate sector that will help you invest better in 2020-21:
Office Spaces:
The office spaces sector had witnessed a robust growth over the last four years with an average annual net absorption crossing 30 mn sq ft. That resulted in steady rentals and capital appreciation, until the onset of the pandemic.
While most of the companies declared WFH amidst pandemic, the demand for the office spaces has been affected. And as the pandemic continues, industry leaders are trying to battle the challenges of working for home such as teamwork, performance management, productivity, creativity, data privacy, apartment sizes, office infrastructure and connectivity.
Warehouse Spaces:
The industrial and warehousing sector in India had attracted significant investor interest since 2017 led by robust demand from e-commerce and other consumer-led occupiers.Due to the pandemic the grocery and basic essentials ecommerce companies helped demand for warehouses spike further to meet the needs of consumers and create a buffer of goods.
https://strataprop.com/insight-details/commercial-real-estate-trends-2020
Comments
Post a Comment