MARCH, 202419accelerated 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, smart locks, and automated surveillance. Additionally, Generative AI is transforming the future of commercial real estate by supporting property operations, acquisition strategy, and portfolio planning.How is the commercial real estate sector contributing towards sustainability?The commercial real estate sector is recognizing its ability to influence the way buildings are built, sourced, and managed, leading to a more sustainable and environmentally focused approach. The influence of global and national directives such as the Corporate Sustainability Reporting Directive (CSRD), standardized climate-related disclosures, and India's Business Responsibility & Sustainability Reports (BRSR) are compelling occupiers to opt for next generation, environmentally certified office spaces. By integrating these sustainable practices into their operations, commercial real estate developers, investors, and owners are actively contributing to environmental sustainability.This commitment not only aligns with global sustainability goals, but also results in significant long-term cost savings for stakeholders. Moreover, implementing these practices enhances tenant satisfaction by creating a healthier and more sustainable living and working environment, further reinforcing the value and appeal of such properties in the real estate market.What does the future hold for commercial real estate services in India?Going forward, the commercial real estate sector anticipates cautious corporate expansion plans due to the global economic scenario and evolving hybrid workplace models. While India continues to be a draw for leading corporates' GCCs, domestic companies from sectors such as BFSI and engineering & manufacturing would continue increasing their appetite for offices in the top cities. Hybrid working policies emphasizing the `office-first' model are expected to encourage collaboration and boost productivity. Return to-office planning, marked by experiential workplaces, is a top priority for occupiers, coinciding with improving office occupancies and utilization rates.In industrial & logistics sector, the share of project completions by major developers is expected to rise. Driven by the premium commanded by new investment grade, tech-enhanced, and strategically located assets, rent growth in select micro-markets is anticipated. The 3PL and engineering & manufacturing sectors are expected to lead demand supported by the adoption of `multipolar' supply chain strategies and government pro-investment efforts. Collectively, these factors underscore a promising trajectory for the I&L sector, emphasizing sustained growth and strategic development to meet evolving market needs.Dynamic trends characterize the future of the retail sector, wherein malls transforming into entertainment hubs contribute to rising footfalls in brick-and-mortar stores, particularly those enhancing the shopping experience. Retailers are committed to upgrading in-store experiences through technology, consumer engagement, space optimization, and personalized services. The sector's future hinges on innovation, technology integration, and a dedicated focus on personalized & experiential shopping, reflecting a dynamic and evolving retail landscape.In terms of residential sector, projects in the premium and luxury segment would continue to witness healthy traction amidst a spate of new launches. Affordability will no longer be the sole decisive factor for homebuyers as health & safety, sustainability and integration of smart home technologies have also started to emerge as being core to home purchase decisions. Flexible workspaces provide Startups with the benefit of no upfront CAPEX, cost saving, operational outsourcing, data security, customization & branding, & access to amenities
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