Commercial Real Estate Demand Likely to Increase Over the Next 3 Years: Report
According to the global survey by Knight Frank, the majority of Indian corporates expect a hike in the portion of their real estate space requirement over the coming three years amidst the ongoing pandemic.
A real estate consulting company, about 70 percent of Indian corporate defendants expect an improvement in their real estate portfolio over the coming three years. This is in spite of three-fourths of the defendants indicating that real estate related cost reduction targets have been raised since the pandemic’s outbreak, as per a global survey by Knight Frank.
About 67 percent of the respondents expect the current COVID-19 pandemic to affect the direction of their medium-term real estate planning. Almost half of the Indian participants plan to make better workplace conveniences accessible to staff members after the pandemic.
The most compelling annoyance of Indian inhabitants with their landlords are a lack of innovation and lack of flexibility in service or product offering. The same highlights the need for property owners to invest in property management and tenant services along with operations.
However, over 40 percent of Indian respondents have reported a growth in communication with their property owner over the pandemic’s progress, providing an opportunity to property owners and occupants to establish a more partnership-oriented and cooperative relationship for the long term.
According to Shishir Baijal, Chairman and Managing Director, Knight Frank – India, “Sentiments amidst corporate tenants are booming as most expect their portfolio to grow in the coming times. While the pandemic has created an environment of anxiety and doubt, the vaccination programs’ rise has brought about hope for the future of the real estate sector. There is also an apparent increase in the demand for viable real estate as many companies have set net-zero emission targets.”
