Trends That Will Reshape The Real Estate Market

2. Co-working spaces finding favour with independent consultants and freelancers.  With the growing start-up ecosystem across India and the central government creating an enabling environment for entrepreneurship, demand for office spaces matching such firms’ requirements has gone up in the last few years.  Also, due to the rising number of freelance professionals or consultants in today’s globalized workforce, office communities or co-working spaces are gaining popularity.  Co-working spaces are popping up across Indian metros as well as tier-II cities, and are helping many start-ups get flexible working options at prices they can afford. These spaces offer desks at cheaper rentals and some also allow a rent-free period to tenants apart from utilities and an office-like look-and-feel to potential start-ups.

3. Crowdfunding beginning to take hold  Crowdfunding helps innovators and inventors raise money for launching their products or services through the Internet. The practice involves raising small amounts of money online, from many people across the globe, to finance a project or venture. While other industries have seen the emergence of a more dynamic crowdfunding scene, real estate’s popularity still has a lot of catching up to do.  Some experts have pointed at the maturing crowdfunding scenario in the U.S., where the amount of money raised and the size of deals, as well as the speed at which they occur, have all steadily increased. In China, the real estate industry is no longer the exclusive preserve of big investors, and property developers have turned to crowdfunding to help finance the construction of commercial and residential projects.

4. Transparency to increase and help attract more funding.  Two-thirds of the real estate markets globally have shown progress in their levels of transparency over the past two years, according to JLL’s Global Real Estate Transparency Index (GRETI) 2016. India too made improvements in overall transparency scores by moving up four places, and its Tier-I cities are expected to break into the transparent category in the 2018 rankings.  Out of 109 countries, the top 10 highly-transparent markets alone corner 75% of global investment into commercial real estate (CRE), highlighting the extent to which transparency drives real estate investment decisions. At a time when capital allocations to real estate are growing globally, investors are expecting transparency standards in real estate to be at par with other asset classes.

5. Retailers looking favourably at office-retail complexes.  For quite some time now, retailers have been road blocked by a lack of available quality retail space. At such a time, office- retail complexes (ORCs) are emerging as alternatives to high streets, and even malls, for some categories of retailers such as F&B (quick service restaurants, coffee shops, fine dining, pubs, etc.) or BFSI (bank branches, ATMs, broking services, etc.).

6. Technology transforming real estate requirements across the globe.  Tech-enabled workplaces are becoming more common across the globe. In U.S., research on the budgets of clients’ interior build- outs are showing very interesting results, with IT costs as a proportion of overall construction budgets increasing rapidly. Earlier, they were around 5% of the overall construction budgets over the last decade.  More recent build-out budgets show the expansion of IT services from cabling and wiring to more than a dozen items for technology, including access devices, infrastructure, mobility, connectivity, data security systems, wireless connections and upgrades, business-specific apps, company-specific conferencing and presentation capabilities. All of these items can add up to 35% or more of a budget for a truly technology-focused company.

7.  KUL Kumar Builders aim to incorporate all these concepts in their projects ensuring clients are handed over keys to an up-to- date, sustainable and ultra-modern home and office. This commitment lands us the top spot as one of Pune’s best builders.