Scripting Future Readiness – Trends in 2022
Covid pandemic has defied every economic prediction, alike long and devastated economic downturn. The economy has bounced back, core outputs have majorly reached pre-Covid levels and jobs recovery is back on track.
To many, major sectors may look remarkably the same as it was before the pandemic, but it isn’t true. Some markets and sectors have changed forever due to other economic hurdles like supply chain bottlenecks. The new normal life will evolve with a ‘bigger the better’ mindset and working near home will be the new fulcrum for the home-buying decisions. The new year will be dynamic as it will set off new innovations in design, planning and amenities deliverables, befitting the preferences of modern home buyers. The prop & fin-tech will mark its strong presence in the construction and real estate industry to make 'evolutionary' trends property sector for 2022.
Young home buyers will be the new catchphrase in the industry garnering traction for modish homes inclusive of open layouts, flexi-spaces, home automation and sustainability quotient. The new-age home buyers will be skewed towards a well-balanced holistic lifestyle that facilitates a walk-to-work trend. Thus, commercial real estate will witness demand of dispersed portfolio with Hub and Spoke model in peripheral twin cities and suburbs. The slew of mega infrastructure will be a game-changer in developing new linkages that shall redefine the real estate landscape in the emerging live-wire centres. Hence, we will see the ‘rise of suburbia’ - a series of new micro-markets across India.
The shortage of skilled labor and products have raised the inflationary fears, a major economic risk. The Real Estate sector has held up better against the rapid market shifts and series of unprecedented tsunamis with surprising resiliency. Hence, follow the highlighted emerging trends in real estate 2022 scripting its future readiness-:
1. 15-minute City Lifestyle- New-age consumers prefer the concept of ‘15-minute drive’ a city wherein daily conveniences, comforts, cleanliness, and communities are easily accessible without any long-haul commute. The concept of township culture will enable them to live a fuller life where ease of living defines a holistic ecosystem referred to as ‘One stop Destination’. Covid pandemics have also magnified the ongoing shift away from congested and expensive downtown markets towards affordable suburbs weaved in robust infrastructure and social fabric. The fine blend of meticulous planning, futuristic designing, and smart buildings will redefine the way we live and work in a new normal.
2. ‘Flexibility’ a new value proposition- The utility and functionality of physical real estate spaces needs to re-align with new normal necessities, where working, shopping, studying, entertaining and socializing will largely continue close to home. Flexible living being the new mantra, home has suddenly become the new epicenter. Residential adaptations are going much further than just caving out spaces. With renewed emphasis on a well -balanced lifestyle, demand for inclusive spacious homes in suburban locations have gained ground. The new level of conveniences and productivity will define more functional value of physical properties with flexibility at its core.
3. Office Reset – ‘Future of Work’ will be skewed towards hybrid models enabling work near home concept. The apt coexistence of value offices and homes in neighborhoods will strike a perfect social, economic, and ecological balance. The rising demand from the tenants to opt for quality grade A assets, offering larger floor plates, better ventilation systems, automation, and employee wellness will reset the framework of commercial spaces. The outlook for office space is still evolving based on the nature of the jobs, industry prototype and location. The rising war of talent nudges developers to offer flexible and conducive office spaces. In any case, answers will not be the same for all sectors as future uncertainities are starkly different from the past. Apparently, the economy is roaring back at its strongest rate fuelling the dispersed portfolio in the Hub and Spoke model. This will lead to an increase in office -type employment in 2022.
4. Conscious Consumerism – A trend where Environmental, Social and Governance (ESG) goals are factored in business decisions in the backdrop of rising climate risk. The onus of climatic risk mitigation collectively lies on businesses, government, and consumers. A change in consumption pattern driven by the awareness of climatic impact, will push the industry developers to look for more green living components in the future developments. The governance for building performance will be further regulated with the financial risk of non-addressing ESG issues
5. Investors’ Confidence Index- The quick turnaround and strong resiliency shown by the real estate sector has surprised the investors bandwagon. The primary narratives define the post Covid property market with successful IPOs, Mergers & Acquisition, record inflow of Private Equity and Foreign Direct Investment leading to the positive investor sentiments. With rising GDP, employment, and technology innovations, the stage is set for augmented investments with increased belief in the future of the real estate sector.
India’s rich demographic dividend and diversity will continue to accelerate the growth wheels of the real estate industry. This labor-intensive sector has a multiplier effect on 270 allied industries resulting in greater employment opportunities. Industry is very bullish in maintaining its appeal to investors with attractive investment potential in emerging asset classes like Data centers, Warehousing, Logistics, high street Retail, Commercial portfolios on the back of rising GDP growth.
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