According to CBRE Asia Pacific Occupier Survey 2018, close to forty-five percent of multinationals are planning to expand their corporate real estate portfolio in the Asia Pacific region in the next two years. The survey also says that India, China and Singapore will be the preferred locations for portfolio expansion by these multinationals. This is good news for the commercial real estate in the country, which is finding its way across the various laws and reforms introduced by the government, in particular - demonetization, RERA and GST.
CBRE Asia Pacific Occupier Survey 2018 predicts that there will be a huge demand for built-to- suit office spaces in the Asia Pacific region in the coming two years. Leasing space in the existing buildings is another upcoming trend. There will be a significant increase in co-working spaces, with almost a third of corporates showing an inclination towards flexible office solutions.
The survey further reveals that in order to grow, the companies today are looking at better space utilization, technological innovations and introducing new-age workplace concepts. The modern corporates expect that the landowners should be proactive in creating and managing a productive workplace. They are highly concerned about the health and security of their employees, and hence, air purification technology is one of the two topmost features that companies today expect the landowners to provide in the office spaces. Biometric authentication comes a close second.
Rather than regular office spaces that were seen in the past, the corporates today are focusing on collaborative workspaces that promote innovation and creativity. Activity-based Working (ABW) will be much in vogue in the coming two years.
The landowners on their part are taking the initiative to develop smart buildings. The survey reveals that as much as eighty-four percent of the landowners in the Asia Pacific region are implementing new technological initiatives and providing much-coveted features like solutions for mobile apps and sensors. The landowners are taking all the needs of potential occupiers into consideration and incorporating the same at the project planning stage itself. For instance, they are implementing space utilization analytics for more refined space planning. Landowners are also structuring flexible lease terms to offer convenience to the occupiers.
India has established itself as one of the most preferred locations for multinationals to expand and grow their business. Various surveys and reports reveal that not only the major cities of the country, but the emerging ones also are expected to see a big boom in the commercial real estate sector. Across the world, automation, robotics and artificial intelligence technology driven companies are driving the demand for real estate, and this trend can be seen in India too. Automobile, IT sector and start-ups are increasing the demand for medium and large-sized office spaces in the cities. Office-retail complexes (ORCs) are coming up in a big way across the Asia-pacific region, including India.
JLL has predicted that the real estate sector's contribution to India’s GDP is expected to become more than 11 percent by 2020. In other words, the commercial real estate expansion predicted by the CBRE Asia Pacific Occupier Survey 2018 will have a hugely positive impact on the Indian economy in the future.