Innovation led Opportunities-Changing India’s Real Estate Landscape
Technology and innovation have transformed our lives entirely. From how we connect with each other to how we buy things, the way we work and how we undertake real estate transactions-all of this has changed. Additionally, rapid urbanisation is resulting in a growing demand for real estate in the country.
Innovations are bridging the gap between unlimited human wants and limited resources. With technological innovation and digitalisation, these innovative concepts have flourished and percolated all aspects of our daily lives. It is shaping the way we work, live and play. It has created a world of unprecedented disruption, which presents immense opportunities, though it throws up ambiguities as well.
The concept of a ‘sharing economy’ is one such innovation. Co-living and co-working are an offshoot of this trend of a shared-economy. The share of co-working in total office leasing spiked up to 15% in H1 2019 from 8% in 2018 and 5% in 2017. The cumulative space take-up by this segment from January 2017 to June 2019 is at a whopping 10.1 mn sq ft. The co-living market in the country is expected to grow at a CAGR of 17% over the next five years to touch nearly INR 1 trillion.
Technology has changed the way in which real estate is being transacted and experienced. Now, technology has spread across every sphere of the real estate lifecycle. From innovative construction technology which helps create more affordable housing to technology-led workspaces where space usage is measured by sensors, technology has made its way. India’s data centre capacity is estimated to be close to 480 MVA with revenues of INR 83 bn in FY 2018-19. We expect the size of this industry to double in India by 2021 driven by data localisation legislation, rising internet usage, increasing usage of internet-connected devices and decreasing the cost of data.
Institutional investments increased in the last ten years and have improved investor confidence, risk appetite and transparency. As a result, investments have more than tripled to INR 1,400 bn during 2014-18 as compared to INR 465 bn during 2009-13. Going ahead, technology-led innovations are further expected to influence the current functioning of businesses – whether it is a real estate agent looking to sell homes, a landlord looking for tenants, or a prospective homeowner looking for his first house. However, the synergy between technology and physical interface will continue in future as well.
Report by JLL
For more updates on news, articles, features on architecture, and interiors visit: www. fortunestreets.com