Page 43 - Construction Vision Sep-Oct 2017 issue

Developers will revamp their business existing business models if they want to gearing up for their maiden innings in real
models remain in business at all. Market watchers estate development. Institutional funding will
who had despaired of the Indian real estate increase.
Throughout 2016, the number of new market ever shedding its tainted image have Co-working: More of India Inc. will move
residential project launches was lower than every reason to perk up now. into 'hybrid' spaces
units sold. With all states staring at the
approaching deadline to implement their Currently, the residential property market is Co-working spaces are popping up across
versions of the Real Estate Regulation & dominated by end-users - speculative Indian metros as well as Tier-II cities,
Development Act (RERA), most of them will investors are making a beeline out of real providing start-ups with flexible working
definitely fall in line. This landmark law will estate as an investment category. options at affordable rents. At last count,
enforce hitherto unprecedented transparency Residential demand is expected to pick up there were more than 100 operators in this
and accountability requirements for only towards the end of 2017 - but the space across India, though there is still very
developers into the system, and do a lot to recovery will be sustainable and based on limited supply of co-working spaces
increase consumer confidence. Consumer much sounder market fundamentals than available. However, this segment is slowly
activism, which has already been making transient sentiment. but surely moving into boom mode across
news in recent times, will increase in India, given the many advantages that such
distressed ongoing projects. The commercial office space sector will get a spaces offer:
strong shot in the arm with REITs. Real *Cost-efficiency
And it's not only RERA that the Indian real Estate Investment Trusts will have an *Employee motivation and retention
estate sector anticipates with bated breath. important and long-term impact on *Boosted productivity
developers and present them with the choice *Firms focused on agility who house their
The Goods and Services Tax (GST) and the of either 'corporatising' or risking take-over innovation teams in co-working spaces can
Benami Property Act will also have a major by their bigger and better-organised induce a quicker learning curve to integrate
impact on how many developers run their counterparts. The pressure from funding them into the entrepreneurial ecosystem
businesses. Demonetisation shook up the agencies will simply be too strong to ignore. *The perfect option for companies who need
older ways of working, but did not affect self- their client servicing teams close to their
governing developers with the right products Corporate developers like Tata, Godrej, L&T, respective client sites in locations with low
targeted at the working masses. The rest Bharti, Mahindra, etc., will acquire more office vacancy .
have realised it is time now to revamp their projects, and corporate houses like Birla are

SEPTEMBER - OCTOBER CONSTRUCTION VISION 41