Realty & Market Reality Beyond Covid
NO MATTER WHAT WE DO TO SCALE BACK NOW, THE COVID YEAR IMPACT WILL BE FELT ON THE PLANET WELL PAST 2050,” HARIHARAN CHANDRASHEKAR, MENTOR, ALTTECH FOUNDATION AND ECOL INDIA
“DECENTRALIZATION, REDISTRIBUTION AND RESTRUCTURING WILL BE THE KEY THEMES OF THE TRANSFORMATION FOR MANAGEMENTS ACROSS ALL BUSINESSES, REALTY BEING NO EXCEPTION. THERE ARE NO SET FORMULAS. INNOVATION AND ANTICIPATION IS THE NAME OF THE GAME. “
The challenge the realty sector faces, pales in comparison with the complete shake down such natural disasters hold into the decades ahead of us. The vital question is, can successful builders of the past look to pursue similar models into the years ahead? To foretell what’s before you at least 5-7 years ahead is part of the challenge business leader’s today face. The good news for India is that the long-term housing demand trend remains stable due to a young population which continues to enter the workforce in large numbers. Decentralizing resource use by solving solve water and energy needs with systems that reduce dependence on city infrastructure by 70-90 percent, at costs that are cheaper than the old conventional connections to the grid, is clearly the way forward.
Demonetization of services such as calling on Apps, or finding places in city with Google maps and online conferencing has led us to the future of de-densification. The shift from emerging cities to the satellite mini-metros is something that’s in line with the government’s plans to develop infrastructure in tier II and III towns. Smart City projects already are charting such large agglomerations with deurbanizing.
“OUR LONG TERM BUSINESS STRATEGY HAS TO RECOGNIZE THAT THE PLANET DOES NOT NEED PEOPLE. PEOPLE NEED THE PLANET. SO THE TWO ESSENTIAL CONCEPTS OF SUSTAINABILITY AND INCLUSION HAVE TO FIND PLACE IN EVERY BUSINESS PLAN.”
The future will see smaller commercial buildings offering “independent offices”. Smaller strip malls and outlet centers in the suburbs will gain prominence. Retail would mean food service, wellness, leisure and entertainment, with a diminished focus on shopping. Warehousing is a big market with multiple asset classes within this segment being innovated as buyers move to online buying and agriculture gears up to backward integrated business opportunities.
Excerpts from a Special Address at 12th Realty+ Conclave & Excellence Awards 2020- South