Building Communities for the Future – CRE in Urban Development

By Published On: April 24th, 2023Categories: Managed Office2.3 min read
Shesh Rao Paplikar about building communities for the future

Over the past decade, the country’s infrastructure has grown tremendously, paving the way for extensive urbanization, also generating a demand to start building communities for the future. While proactive government policies opened the market to global opportunities, boosting the economic foundation for rapid urban developments, it was commercial real estate that accelerated real growth. A stable job market and availability of talent have made India a viable market for a lot of global players to expand, creating a robust-demand supply equilibrium of Grade-A office spaces. This opportunity prompted developers to actively acquire land parcels to give wings to their ambitious commercial projects, creating an innovative mix of office and shopping districts in key corridors.

Shesh Rao Paplikar, CEO, BHIVE Group

Apart from enhancing the overall value of a location, commercial real estate development also drove development in other segments as well. With rapid urban development in various key markets, the residential market also got a major boost. A large number of people who came in search of better life owing to the possibilities offered by these urban commercial districts, also wanted spaces to live and thrive, creating opportunities for the residential sector to come up with large-scale housing projects. So, in a way, commercial real estate created a holistic ecosystem where the pace of urban development accelerated.

The perfect case in point is Gurugram and its various micro markets that grew rapidly over the last 2 decades owing to commercial real estate development. From large agricultural lands and a barren topography, Gurugram transformed into the list of the country’s most vibrant cities and all these developments can be attributed to commercial real estate. The swanky and massive corporate parks and commercial districts not only attracted global companies to set up their operations but also scaled up the economic activity in the region. Soon, the retail sector grew rapidly to cater to the new market and eventually boost further urban development through premium and luxury residential projects.

This also holds true of other cities like Bengaluru and Hyderabad. These cities emerged as prominent global IT destinations, building a strong foundation for the commercial real estate segment to spread its wings. The suburbs of these cities saw rapid urbanization as more and more IT NNCs opened up offices there, eventually creating a network of communities that are thriving in these cities.

In a nutshell, it can be rightly deduced that commercial real estate has been the torchbearer of urban development in India, and the legacy is still carried forward. With digital transformation and India’s economic growth, commercial real estate has gathered more steam to race toward a brighter future and this momentum will keep picking pace in the years to come.

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