M3M 65th Avenue / Promising Future of Commercial Real Estate in 2023
Market sentiments show that the commercial market is all set to make a steep leap in the coming year. Continue reading to know more about the current trends...
The real estate sector including both residential and commercial has undergone a phase of stagnant growth hampered by the pandemic. For an interim period, the industry was overtaken by the digital mode of work which resulted directly in commercial real estate. However, this wave seems to have taken a sharp turn in the post covid time. The exponential growth of the commercial real estate sector is axiomatic with the influx of corporate giant office space in India. The drivers of the corporate world MAANG (Meta, Amazon, Apple, Netflix, Google) are choosing India as their base to introduce offices. Now the third largest startup ecosystem in the world is experiencing a turf war for corporate hubs and Grade A locations for their base.
The growth of economics and pool of employment opportunities also have compelled redefining access to revamp commercial infrastructure and social amenities. Over the recent years, India’s commercial real estate (CRE) has forecast an unprecedented growth trajectory. Coupled with occupier interest and the intervention of real estate developers of small and medium have guided the ballooning of the CRE. Considering Delhi NCR as a variable considered as the most advocated region for positive growth in the CRE segment. As information provided by a report on Commercial Realty Delhi-NCR is undergoing a higher appreciation in CRE returns. The catalyst for these higher returns is taking shape from new leases and store openings, and a new trend for office co-working spaces.
The sudden thrust in the demand and trends of CRE and its growth in the post covid phase is articulated by many forces. Out of the many on the list is the demand for co-working space which is a new age significant. Other reasons are credited to many innovative and high-end features, modern theme office space, eco-friendly initiative, and top-of-the-line amenities.
Every project and expansion of the real estate industry was halted briefly brought about by Covid. But as demands are unprecedented and toppling up all developers of the industry are planning to capitalize on this demand and complete all pending projects. To hit back with more projects and to exploit the demand pressure seems to be completed before any recession or input cost increase. As office space vacancies are also lowering at an alarming rate every developer is strategically moving toward closing all pending developments. This move is to prepare themselves so as to meet the demand as well as to complete all business prior to inflation's impact on cost and supply.
As per data released by JLL, the market for Grade A office market is likely to hit an all-time high of 1.2 billion square feet by 2030, owing to surging demand. This is true to the extent of the study of the CRE industry as Corporate giants only seek to occupy Grade A offices that are also all in prime locations. On this note, small and medium companies are left with lower-end office space. But how is this higher demand projected this is because of the introduction of co-working space in CRE. Co-working space is more cost-effective and efficient and the services are heavenly for a region known as a paradise for start-ups.
The location of Gurgaon in Delhi NCR is a location tailored and curated for new-age CRE with social amenities beyond others. As top-class corporate giants have already intervened in the region the CRE market is expected to grow lucratively every year. For instance, Tata Realty and Infrastructure Limited (TRIL) is constructing grade A+ office space for corporate leasing in Gurugram. Investing in CRE brings a higher return and longer commitment every 3 years; an assured 15% increase in property return is projected.
Located in the city of Gurgaon the newest hotbed for CRE is the M3M 65th Avenue commercial development. Introduced by PropEquity HSBC a brand considered the top Real Estate Developer in North India. The commercial project comes with a plethora of features and modern amenities. It comes with a LED screen in an open-air space which is considered one of the largest in the city. The project location is also blessed with a catchment area of 5000+ HNI families within the vicinity.