Mumbai, June 20 — India is becoming the hub of new corporate offices. The retail growth is going through a lean phase despite the elevated demand for office spaces. Real estate experts believe there are several factors responsible for this change. Still, more and more people are willing to lease offices in cities like Mumbai, Delhi and Indore. There may be new challenges and changes ahead for the retail sector, which could temporarily impact its growth. Shravan Gupta, MGF Group, suggests this will also transform office leasing. Shravan Gupta, MGF Group, believes this will change the face of office leasing. Some experts believe that retail real estate may experience a dip factor due to these changes.
-E-Commerce disruption- Today leasing out a space in malls is a costly proportion. The overall footfall in retail shopping has lessened due to the online and e-commerce channels presence. This may indirectly impact the mall lease and lessen the rental income. It is likely to continue till the end of 2024 making the growth slow.
-Varying Consumer choices- Consumer choices play a vital role in boosting or lowering commercial sales. Post COVID people prefer to work from home. Hence the demand for office spaces may slow down. People prefer to lease for a short time only and save money on monthly rentals.
The demand for office spaces with facilities like open spaces, cafe and recreation spaces is on the rise as well. Hence, a builder might need to have these in office spaces to overcome the slowdown. However, the experience is different in tier 2 and 3 cities where people are willing to invest more.
-Adapting to technology- The impact of technology in real estate has become visible. The buyers are likely to opt for a tech-friendly building with amenities like smart lights and, a smart entrance system. Shravan Gupta, MGF Group says building without technology may dampen the mood and impact the lease and sale of such office buildings.
Also, the emergence of personalised marketing has impacted the sale of office buildings. A person who will lease the office space is likely to view it online before leasing.
The cost factor- The location of a building has become critical today. A building without eco-friendly features is likely to draw fewer buyers and rentals. Hence, such buildings need to be cost-effective with a high sale value.
The demand for new office spaces will always rise. Builders like Shravan Gupta, MGF Group feel it is vital to incorporate these changes to boost the lease value of commercial spaces. The good news is that builders are making more of such buildings. However, the forecast for growth is cautious due to other factors like rising labour costs and material pricing.
Website: https://www.shravangupta.com