Reality of realty in the post-COVID-19 world
A survey report
Executive summary
Post COVID-19, the needs of real estate clients have gone through significant changes across all major sub-sectors (viz. residential, commercial, retail, warehouse, and data centres). The market has moved favourably by adopting new ways and exhibited good growth across key parameters. The government’s push for the sector is also bolstering confidence amongst investors.
Our recent survey, which was conducted to understand changing customer perspectives, through the responses of leading CXOs in the sector, captured the following points of view:
Residential
There has been an increase in demand for housing due to the psychological need to feel safe and secure. Regulatory changes and incentives from the government have aided the supply and demand.
Commercial
There might be a short-term reduction in office space demand. However, the evolution of the hybrid working model is likely to lead to needs for commercial office space in the long term. Co-working spaces are likely to grow to support flexible/ alternative working space growth.
Retail
There is likely to be a potential reduction in short-term demand for retail real estate. Shops will face a challenge against apps, while in-store experiences will win for high-end purchases or where experience is primary. While apps may remain relevant for regular purchases, social behavioural needs will bring back crowds to malls, leading to transformed mall usage.
Warehousing
Warehouses have recovered from slow growth after COVID-19. Developers are exploring fungible usage of residential assets for warehousing.
Data centres: In the spotlight
There will be an increase in the need for data centres due to fast-growing increase in data usage. The government is aiming its initiatives to boost the sector leading the way towards a “Digital India”.
