How millennials will reshape commercial real estate leasing in India
Indian metros are also catching up with the idea of suburbia, in which the cities on the outskirts are developing.
India’s commercial leasing is on the rise again. Large companies such as Google, Samsung India, ABB, Veritas etc. have closed large deals in the past few months. Most IT and technology companies expand because of their long-term growth potential.
Corporations and larger corporations are also implementing back-to-office programs backed by declining COVID cases and a nationwide successful vaccine program. Until the third wave fear kicks in, we can now safely say that India’s commercial real estate is on an upswing after subdued demand during the pandemic months.
However, it is also important to understand that in order to succeed in the new normal, or rather the new reality, one needs to understand an important but often overlooked force – the millennial. India is a young nation with an average age of around 28 years. Approximately 65% of the Indian population is under 35 years of age. The majority of breadwinners today are Millennials, and their sheer number also suggests that they will be instrumental in shaping the future of commercial leasing in India. In the foreseeable future, the decisions and values of millennials will also be reflected in commercial real estate in India.
Value-added services (VaS): The modern office would not only consist of desks and meeting rooms. It should have value-adding amenities such as gyms, play areas, open spaces, gaming zones that can ensure a good time in the office. Likewise, cabin culture may not be very popular. Rather, the future is about home textiles that can be optimized at will.
Environmentally friendly smart offices: Millennials are increasingly opening up to the idea of environmentally friendly offices that can optimize energy and water consumption, reduce the overall carbon footprint and promote sustainable living in the long term.
In the future, developers need to focus on green and sustainable technologies and innovation. This should include increased use of water recycling methods, recycled building materials, smarter devices, smart metering technologies, adequate use of ventilation and sunlight.
Adventure trade: The time for experiential retail has finally come in India. In creating new age retail, it’s also important to reimagine and rethink retail through personalization, localization, and the seamless integration of technology into retail offerings. These are no longer just marketing fads, but the reality of today.
The footfall in shopping malls and high street retail stores will increase. However, buyers would not open their wallets to buy. You need meaningful commitment and experience. The new retail will need plenty of rest areas, ventilation, and natural lighting. There will also be a need for extensive ability to test products and items (a key differentiator for physical stores that they must use intelligently).
The rise of the suburbs: Indian metros are also catching up with the idea of suburbia, in which the cities on the outskirts are developing. Called suburbs or suburbs, many millennial households move to these locations to avoid traffic and overcrowded housing in the inner cities. Affordable property prices are also driving the upward trend. These emerging corridors are also attracting new offices, co-working spaces, shopping malls, and main streets to meet evolving demand.
(By Ankit Kansal, Founder & MD, 360 Realtor)
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