Recent trends show that corporate India is moving into ‘hybrid’ spaces that are leading to a rise in co-working culture, particularly in metro cities where the start-ups are being provided flexible working options at affordable prices.
Companies with limited space requirement are leasing out their office space, which is giving rise to ‘hybrid’ space. This would help in employee motivation, boosting productivity and, bringing cost-efficiency.
Another trend that is seen is the emerging concept of Affordable Housing Segment, under which incentives are offered to build houses in rural India with the support to cheaper sources of finance.
External commercial borrowings and re-financing of housing loans by National Housing Banks would help in the growth of the sector. For affordable housing the carpet area has been changed from 30 square meters to 60 square meters from the saleable area.
The land prices would also go down in the next few years, as there is limited availability of a high-value currency due to demonetization.
Another trend that can be seen is mergers and acquisition as part of industry consolidation. The merger of different developers is being implemented. Joint developments and joint ventures will give more meaning to the real estate sector.
This will give rise to mergers between small and big developers, struggling developers with strong players, also landowners with new builders. This will attract the investors as the price earnings ratio for this sector will improve.
Real estate companies seeking to develop the office sector would get funding from private equity funds. It will attract the small investors, with minimal risk appetite. They will know that, the money they are investing in is into something that is concrete, and it would not lose its value.