The Commercial Real Estate growth with innovation as the key driver
Post-pandemic, commercial real estate in India has reclaimed its lost ground with absolute grit. The rebound story of the sector is not only awe-inspiring but also gives a glimpse into a future that is bright and resilient. While a lot of factors fueled this upward growth trajectory, it is the proactive adoption of innovation that made the growth sustainable and long-lasting.
Interestingly, for the commercial real estate sector, this innovation is a continuous journey and the openness and keenness to embrace change is enabling the sector to explore new opportunities.
A report released by Deloitte, one of the biggest global professional services networks, laid out some of the fast-evolving trends that will affect the development of the real estate industry, especially the CRE. The report identified five factors that will drive innovation and equip the commercial realty segment to make the physical spaces future-ready.
The report further read that – shifts in technology and consumer behavior will subvert and redefine the commercial real estate (CRE) industry. At the same time, demographic shifts, growing urbanization, the longevity of Baby Boomers, and differentiated lifestyle patterns of Millennials, as well as security, climate change, and resource scarcity concerns urging urban policymakers seriously, consider using innovative ways to manage commercial real estate.
With the rising demand for spaces that are sustainable, commercial realty developers are actively looking into innovation pertaining to the health and wellness of the occupants. CRE developers are aligning their vision with that of the occupiers’ desires for thermal comfort, daylighting, and lighting noise and are bringing in innovation to conceive their projects.
Among the key innovations, IoT is the glue that is holding everything together. The commercial real estate sector has always been on its toes to adopt technological innovation and IoT has helped the industry big time to transform. The CRE sector has been using IoT-enabled building management systems to offer a seamless experience and also by increasing operational efficiency and cost efficiency.
3D printing is another area of innovation that CREs across the globe are considering. Though India has a lot to catch up on in this area, this innovation has a lot of future potential, especially for low-rise commercial developments. This technology, which is widely used in the Middle East and China, once employed in India, will drive operational efficiency and will enhance the quality of construction.
Having said this, the retail sector deserves special mention. The rebound story of the retail sector over the last 2-3 years has inspired the entire CRE sector and one of the reasons for this swift recovery can be attributed to the proactive adoption of innovation. By blending the physical and digital aspects the retail sector went ‘phygital’ and created curated experiences to appeal to the fast-changing preferences of consumers.
As a way forward, for the commercial real estate segment, flexibility is the need of the hour. This will not only offer the room to innovate but will also unlock new possibilities that are lying ahead for the Indian CRE sector.