A Catalyst for Modern CBDs

While 2020 was a year of change, 2021 brought along a ray of hope as industries steadily returned to business while adjusting to the new normal. India has been on a path of recovery by re-establishing a firm ground for itself - evident by the nation’s V-shaped recovery curve, owing to the re-opening of its local and export markets.

 With numerous cities undergoing testing times, the competition to attract the right talent, implementation of new tech and capital is at an all-time high. Government lockdowns and accelerated adoption of remote working and hybrid working models are defining how these cities are re-evaluating and strengthening local business districts.

 While the overall realty sector can be expected to recover this year, the growth of Central Business Districts (CBD) will be driven by the resilience and real-time adoption. Stating an example, Mumbai has proved itself as one of the industry’s key growth drivers with its commercial segment having shown a clear redemption in the recent past.

 While the market situation is still evolving, the office segment will continue to be the preferred choice for investors in 2021. The expected demand coupled with the potential re-opening of offices will further boost the sector. With a renewed focus on wellness, safety measures and social distancing norms; there’s also potential for existing tenants also demanding more office space for compliance.

 Taking another example from Mumbai, the city has shifted focus to new modern projects that prioritize flexible office spaces, improved connectivity, and exclusive retail zones. The city’s Lower Parel district, along with other markets is now being developed as one such alternate business district, demonstrating the immense potential for future-ready spaces.

 With the government’s mass vaccination initiative, the latter half of the year can be expected to drive greater demand for such projects. While it remains to be seen how the segment will evolve in the long run, CBRE’s recent ‘The Future is Flex’ report touches upon emerging trends and future expectations in India’s flexible space segment – which are likely to drive demand for modern CBDs and its expansion across cities.