siliconindia | | APRIL 2024 19EMERGING TRENDS IN THE COMMERCIAL REAL ESTATE SERVICES IN INDIAAnshuman Magazine,Chairman & CEO - India South-East Asia, Middle East & AfricaCBREWith over three decades of experience in the real estate industry, Anshuman has been instrumental in formulating efficient business strategies for CBRE that have led to the company reaching the pinnacle of success. In a recent conversation with Siliconindia, Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE shared his insights on various aspects surrounding the commercial real estate sector in India. Below are the excerpts from the exclusive interviewTell us about the evolution of the commercial real estate services segment in India in recent times.Despite global challenges, the Indian commercial real estate landscape in 2023 was characterized by significant growth, resilience and transformative trends. The office sector saw a 4-year high in office leasing activity, with a gross absorption of 61.6 million sq ft in 2023 across nine cities, registering a growth of seven percent YoY. Owing to the growing focus of developers and occupiers on sustainability, green-certified office stock in India has increased by over 36 percent since 2019 to about 342 million. sq ft across the top six Indian cities as of 2023. The retail sector too has demonstrated significant vitality in 2023, and there has been a trend reversal post-pandemic, with domestic retailers accounting for almost 75 percent of the overall leasing during most of 2023. Interestingly, this leasing is spread across many segments and not limited to only the F&B segment.In the Industrial and Logistics (I&L) sector, 3PL players dominated leasing with a share of 45 percent, followed by engineering & manufacturing players in a major part of 2023. Balancing occupier demands for flexible working models and sustainable practices, the sector has proven its enduring strength and is likely to reach a 5-year high absorption mark of 36-38 million sq ft in 2023 across top eight cities in India. Supply addition too is expected to outperform and will touch 35-37 million sq ft in 2023, driven by the completion of pent-up projects.How is the real estate industry using virtual technologies such as AR/VR to their advantage?Technology is changing how investors and occupiers experience spaces in recent times. For example, occupiers can now tour sites worldwide instead of relying on physical site visits. Evolving AR/VR technologies will make these experiences even more immersive, allowing spaces to be dynamically altered and enabling consumers to instantly assess different layouts and patterns. Real estate developers who are enhancing customer experience by introducing key elements of touchless surfaces, smart homes, and visualisation through VR or metaverse are in the long haul for creating differentiated value among consumers. Not only has this allowed for wide geographical reach, but is also expected to give the benefits of real-time remote monitoring, predictive maintenance, accelerated risk assessment and production time, and better team collaboration, enabling effective financial decision-making.Innovations in AR/VR, blockchain, and AI-driven property management are streamlining operations, improving decision-making, and enhancing the customer experience. Advanced security systems with AI and ML are making properties safer through facial recognition systems, CXOInSIGHTS
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