New real es­tate trends that are ex­pected to emerge this year

Mint Asia ST - - Otherviews -

hos­tels or lodges work on the ba­sic con­cept of co-liv­ing.

While such co-liv­ing trends have been around for sev­eral years now, they are get­ting more or­gan­ised now. “Co-liv­ing is more than a mere bed-and-break­fast deal. There are pri­vate bed­rooms with ac­cess to com­mon shared ar­eas like the kitchen and liv­ing room. Such spa­ces of­fer con­ve­nience and an en­tirely new life­style for young pro­fes­sion­als,” said Anuj Puri, chair­man, Anarock Prop­erty Con­sul­tants.

How­ever, such co-liv­ing op­tions are largely avail­able only in metro cities. “While it is largely ma­jor cities like Ben­galuru, Mum­bai, Gur­gaon and Pune that be­gan pro­mot­ing this con­cept, the de­mand for co-liv­ing spa­ces is also grad­u­ally per­co­lat­ing to tier II cities like Jaipur and Luc­know where both work­ing mil­len­ni­als and stu­dents are in­creas­ingly opt­ing for these spa­ces,” said Puri.

Ac­cord­ing to a study by Mag­icbricks, a real es­tate por­tal, “Co-liv­ing is a frag­mented in­dus­try with most play­ers be­ing start-ups hav­ing formed in the last 3-4 years. Nest­away, Oyo Liv­ing, Ziffy­homes, Stayabobe, Sim­plyGuest, Pla­cio, YOUROWN­ROOM, Rent­mys­tay, Coho, Co­live, Stanza Liv­ing, Quickr, and Zolo are the key play­ers op­er­at­ing in this space.”

It will have to be seen how this new con­cept emerges and per­forms in 2019 and later.

Co-work­ing spa­ces

As far as com­mer­cial real es­tate is con­cerned, co-work­ing spa­ces are ex­pected to strengthen their po­si­tion in 2019. It was a new con­cept in In­dia a decade ago, but not any­more. In the last few years, co-work­ing spa­ces have wit­nessed a lot of trac­tion and ac­cept­abil­ity. While ear­lier only small busi­nesses and in­di­vid­ual pro­fes­sion­als opted for it, now even larger com­pa­nies are oc­cu­py­ing co-work­ing spa­ces.

“A sig­nif­i­cant change in oc­cu­pier trends has been wit­nessed with a marked in­crease in the col­lec­tive take up of co-work­ing spa­ces,” said Ramesh Nair, CEO and coun­try head, JLL In­dia, a real es­tate con­sul­tancy firm. The share of co-work­ing spa­ces in to­tal of­fice leas­ing in­creased to 10% in 2018 from 5% in 2017. With more sup­ply likely to come in the near fu­ture, leas­ing is ex­pected to in­ten­sify in 2019. In ad­di­tion to strong de­mand from start-ups and small and medium en­ter­prises (SMES), large main­stream cor­po­rates are also ac­tively look­ing at these new-age of­fice spa­ces, added Nair. Ac­cord­ing to CRE Ma­trix, a real es­tate re­search and an­a­lytic firm, dur­ing the year 2018, Smart Work Busi­ness Cen­tre, a co-work­ing space provider rented 18,000 sq.ft to Tata Com­mu­ni­ca­tion. Sim­i­larly, Aw­fis Space So­lu­tions, rented out 21,000 sq. ft space to Hin­duja Global So­lu­tions.

Will Reits be launched?

Many ex­perts also be­lieve that the first Real Es­tate In­vest­ment Trust (Reit) will be launched in the coun­try in 2019. REITS was in­tro­duced in the year 2008 in In­dia, and first draft guide­lines on the sub­ject were is­sued in 2013. But lack of clar­ity on tax im­pli­ca­tion was hold­ing back the REITS to be­come a re­al­ity. But in the last few years, gov­ern­ment has re­moved many hur­dles.

“One of the ma­jor driv­ers for the grow­ing in­ter­est of in­vestors in the com­mer­cial of­fice space has been the gov­ern­ment’s move to bring in pro­gres­sive mod­i­fi­ca­tions in In­dia’s REIT pol­icy in last three years, mak­ing it more mar­ket friendly. As a re­sult, global in­vestors have in­vested sig­nif­i­cant cap­i­tal in ac­quir­ing large of­fice as­sets for build­ing their REIT port­fo­lios in In­dia,” said Sa­man­tak Das, chief econ­o­mist and head - re­search and REIS, JLL In­dia.

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