What’s in store for the coworking segment in India in 2020? Let’s identify the coworking trends that will push this exciting real estate segment.
Category: Commercial Real Estate
The real estate sector's performance - a reliable barometer of India's overall economic health - painfully reflected the macro-economic state of affairs in 2019.
Anuj Kejriwal, MD & CEO – ANAROCK Retail
The tragic debacle around CCD’s debt-ridden founder may be indicative of a larger malaise
- Rentals can eat away almost 15-20% of the overall revenue an Indian coffee shop generates
- Corresponding costs in countries like the US is just around 5-6%
- many indigenous coffee shops are unable to survive more than 18 months into the business
From the early morning dose to business deals closed over a cup of java, coffee keeps us charged; the millennial coworking culture is often incubated and based in cafés. As a consequence, there has been a stupendous rise in the number of coffee chains and concept bistros across the country.
It all started with Café Coffee Day – popularly known as CCD – which gave the country its first coffee shop way back in 1995, long before global giants arrived.
Today, places like Café Coffee Day are no longer just hangouts or meeting joints, and certainly not just about coffee. They offer a unique ambiance, music and free Wi-fi to youngsters and entrepreneurs alike.
As per ANAROCK data, despite increasing vacancy levels nearly 13.6 mn sq. ft. of new mall space is likely to come up in the entire MMR by 2022.
ANAROCK's latest retail report states that Indian mall developers are looking to add over 65 mn sq. ft. of new mall supply across the country by 2022-end.
The new concept of 'cloud kitchens' - which involve low operating costs and high-profit margins - is gaining increasing traction among F&B players.
Kolkata’s new launches recorded a massive drop of 85% during the period with merely 1,000 units being launched in Q1 2019.
If we compare commercial real estate yields to those for residential properties, it becomes evident why many HNI NRIs prefer investing in the former.
Although investors are eyeing commercial properties and warehousing, the inherent demand for housing in India is beyond question.
Prashant Thakur, Head – Research, ANAROCK Property Consultants
Developed by the Bangalore Development Authority (BDA) decades ago, HSR Layout – home to upper-crust residents and even some ministers – is strategically located between major IT hubs including Electronic City, Outer Ring Road and Sarjapur Road.
Not surprisingly given these excellent location antecedents, HSR Layout has transformed into a major residential-cum-commercial hotspot of Bangalore.
This micro-market is largely defined by sizeable bungalows, small builder-floor apartments, wide roads, several small parks and well-established retail options. It is also one of the most self-sustained localities in the city.
A Unique Lifestyle Quotient
Its proximity and easy connectivity with major IT hubs make HSR Layout a preferred residential destination for IT professionals working in nearby Infotech hubs.
There is no dearth of rental options here which are more affordable than in HSR Layout’s neighbouring IT/ITeS-dominated markets.
Its well-planned layout includes parks, schools and hospitals at a convenient distance in every corner of the locality.
HSR Layout’s well-developed social and physical infrastructure also makes it a desirable residential option, both from a purchase and rental point of view.