Notwithstanding the work from home trend emerging for most tech companies during the Covid-19 pandemic, information technology (IT) companies continue to be among the largest consumers of real estate space during the September 2021 quarter, according to a new report.
The report, titled Real Estate Industry: Outlook and Challenges released by Infomerics Valuation and Rating Pvt Ltd, said IT remains the largest consumer of space during the quarter, occupying 34 per cent of the space transacted.
Overall, the commercial segment, which is relatively a more formal segment (with big players involved), has seen an influx of investment. Among dominant markets, Bengaluru, Chennai, and the National Capital Region (NCR) recorded largest recovery in the September 2021 quarter.
No going back to the way we worked
The report mentions that post-pandemic, the real estate industry has been witnessing drastic change over the past two years. While the Covid-induced ‘work from home’ model reduced the demand for commercial spaces, it increased the demand for residential spaces.
However, commercial investments augur well, given the scope of business activity in India and this can be clearly witnessed with the on-going developments in the Indian business space; more companies are being formed as they touch greater heights of expansion with need for working spaces. Moreover, about 88 crore people are expected to live in urban areas in India by 2051 as against the current 46 crore people. Therefore, this trend-setting pattern is sure to be salubrious for the real estate industry along with government interventions and new schemes rolling in, in urban house spacing.
Growth drivers
Factors driving the growth of the real estate industry in India include low interest rates, favourable government policies, revised circle rates in Delhi, more ready-to-live projects, etc. The report also highlights the fact that more than 58 per cent of people consider property as a mode of safe investment, with a notion that the prospects for real estate are likely to get an upswing once the pandemic recedes.