The commercial office space market in India is witnessing a humongous change in 2019.
The demand for commercial office space properties is mounting up day by day. There is a huge potential growth in end users and investors alike.
After all, it is deemed to be one the biggest destination for investments in India not only for the Indians but for the NRIs as well. Today everyone is extremely keen to ace up their investments in the commercial office space market investing sector.
Thanks to both Tier 1 and Tier 2 cities that are absorbing the ever-changing corporate environment. The demand for bigger as well as better office spaces by national and multinational companies are swiftly surging in these areas.
Listed here below are some trends that are fruitful in shaping the commercial office space market in 2019:
1. Adoption of Co-working culture by Multinationals and Global Players:
Gone are the days when co-working or shared workspaces were only looked upon by the start-ups and SMEs. Today there are N numbers of multinationals and global players that are showing increased interest in co-working and shared office spaces.
The perks of superior infrastructure, flexible work environment are playing wonders. Moreover, it also has the advantage of reducing their operational costs. Due this many unused commercial spaces are now seeing occupancy. The value of the property is also escalating.
2. Role of Technology:
The latest technology-powered office solutions are the game changer for the Indian corporate real estate sector. This new trend of having robot receptionists, wireless AV systems, parking services based on apps, intuitive meeting rooms are driving the future growth of commercial estate in India. These technological innovations are propelling the corporate world.
3. Buying is more favorable as against Leasing:
The past few years have witnessed many companies opting to buy commercial properties in Tier I and Tier II cities instead of leasing them. Buying is a one-time investment and helps in building long term asset. Companies Prefer to Merge with Co-working Brands
Partnering with co-working brands gives an opportunity to the occupants to enjoy a vibrant work environment and get agile workplaces. It also turns out to be a good networking source. The terms are very cost-effective.
4. Space Efficiency is helping to Boost Operational Efficiency:
These days the corporate giants are combining their several office spaces into one.
They want their space to be resourceful. This helps them to save overhead costs. As a result, now there is a requirement of bigger office spaces to accommodate staff members from multiple office locations.
5. The Well Being Aspect for Employees is moving Fast:
Corporate giants have started giving due importance to “Wellness”. They want their employees to be sound and healthy. Thus they look forward to only those projects that possess the label of “Well Certified” to ensure the wellness of the occupants.
6. Revision on Lease Period is taking the Tempo High:
The lease period for office spaces has now been extended up to 12 or 15 years as against the earlier term of 9 years. This is enabling the tenants to save on rent and secure occupancy rights.
Studies reveal that last year in 2018 even Non-IT companies like healthcare, biotech, telecom, consultancy businesses, and others actively showed interest to occupy the commercial office space market in India. It has been observed that Bangalore is the first choice of multinationals. Delhi NCR, Chennai, Hyderabad, Pune, and Ahmedabad are also in the preference list.