Emerging trends in Real Estate - 2022

Apr 6

From the start, the COVID-19 pandemic has eluded all economic forecasts. For so many, the real estate industry may seem to remain virtually unchanged since the pandemic, but that is not the case. Are Real Estate investments still considered good wealth management? Here is what we can expect going forward.

In the past few years, a lot has happened and therefore, changes in Real Estate trends were bound to come. The change in trends can be studied under 3 broad categories: impact of COVID-19 directly on the industry, climate change and ESG affecting Real Estate, and finally how we'll do our jobs in the future.

COVID-19: Altering the trend

The next decade will be influenced by the pandemic in ways we have not imagined. This will require a trait that has been abundantly evident thus far: adaptability. Many people anticipated real estate trends to take years to play out, but in the past year and a half, they have accelerated. Rapid change is becoming the norm. Retailers, for instance, will need to improve their e-commerce capabilities to suit customer demand for the convenience of purchase, delivery or pickup.

A seamless transition between a real company and its online platform is required by clients. Permanent outdoor dining facilities are already being examined by numerous restaurants that presently employ temporary ones.

Moreover, a facet that seems to elude everyone is that the number of tenants who migrate from other cities to work might not do so owing to the hazards of the virus' presence and also an option of work-from-home which has become available.

Firms will need to enhance their infrastructure to support remote working. As offices disappear, so do hotels, restaurants and other businesses that depend on the patronage of office personnel.

Climate Change and ESG - Environmental, Social, and Governance

The United States Government's climate change report suggested that countries must act swiftly to save the planet from possibly bigger weather calamities. What does it represent to the property sector? A much.

The industry is the biggest producer of greenhouse gases and global warming. Buildings account for upwards of 40 per cent of global energy consumption and carbon emissions. Sector leaders and investors are perfectly positioned to play a leadership role in muting climate change’s severe repercussions. However, many remain unconvinced. In the middle of the ESG value-driven investing boom, many CEOs remain sceptical that their efforts will pay off in the form of increased stock returns.

Real estate is in a unique position to decrease the consequences of climate change while simultaneously boosting a community's ability to endure it. Setting ESG performance standards is one technique to attain this aim. This can be done with wealth management to maximise the output by keeping the inputs and waste limited.

How we'll do our jobs in the future

Now, as the pandemic lingers on, many businesses confront new issues: How often should workers report physically to work, what types of venues might make employees feel safe and so on.

The uncertainty has taken a toll. Long the cornerstone of commercial real estate portfolios, the office sector suffered the biggest decline in sales transactions of any sector compared to pre-pandemic levels, which was a result of wealth management done in a subtle manner. Many large investors are on the sidelines or have scaled their stakes in office buildings, especially those that are not in favourable locations.

Work from home, on the other hand, has switched views on returning to work. Bosses increasingly acknowledge that many workers can be effective at home, and several organisations are even giving permanent remote working choices. That suggests most enterprises will likely need to lease less space per worker in the future. Many companies might also start preferring the rental model as minimalist offices might become a preference given the less workforce is coming in. Also, the rental model allows companies to now get smaller places to invite the workforce on alternate days as many won't be working at full capacity. Changes will be influenced by tenant preferences as well.

How Indiassetz can Assist?

Indiassetz is India’s first Real Estate banking platform with immense resources to manage your wealth in the most efficient of ways. This is the right time to invest in Real Estate as the industry has started recuperating from the blow that was struck by COVID-19. Real Estate prices are still very low and now is the right time to invest. If you do decide to do so, definitely seek the help of Indiassetz because we