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In today's dynamic business landscape, where environmental concerns are at the forefront of global discussions, the Indian real estate sector has embraced a transformative shift towards sustainability. One of the pioneering Indian sectors – real estate is revolutionizing the industry through Grade A ecosystems of green office spaces while contributing to a thriving economy. India is currently ranked third in the world with more than 752 LEED-certified properties after China in Canada, basis USGBC Annual list.
A holistic, sustainability-driven, Grade A ecosystem is fostering business growth across India, through several initiatives:
Setting Industry Standards for Green Office Ecosystems
The real estate industry’s shift towards sustainability is marked by a growing preference for green office spaces that seamlessly blend eco-consciousness with industry-relevant standards. These spaces are designed with a deep consideration for energy efficiency, resource conservation, and reduced carbon footprint. By incorporating advanced technologies and innovative architectural designs, green office spaces not only promote a healthier environment but also set a new benchmark for industry standards, inspiring others to follow suit in creating sustainable workspaces.
Sustainable Practices at the Core
Getting these green standards in place requires collaboration. Real estate professionals, architects, environmental experts, and regulators need to join forces. They will need to establish clear metrics for energy usage, water management, indoor air quality, and all-around sustainability. Certifications offered by esteemed organizations like LEED & IGBC add weight, serving as a seal of approval for genuine green credentials. As the demand for sustainable workplaces surges, these green office space standards are pivotal. Those who construct and use these spaces are shaping a cleaner and greener future.
Preferred Choice for Organizations and Employees
Grade A green office spaces' success transcends mere adherence to environmental benchmarks; they have evolved into the favoured choice for both organizations and employees. In today's professional landscape, there is profound esteem for spaces that harmonize with sustainability-oriented principles. Consequently, employee preferences for eco-conscious work environments influence organizational decisions significantly. Abundant greenery, natural illumination, and fresh air collectively exert a positive influence on the overall work milieu, fostering heightened creativity, engagement, and job satisfaction.
Fostering Business Growth
These practices have not only resulted in positive environmental impact but also spurred humungous business growth and aided economic growth. The adoption of sustainable practices has led to the creation of jobs in various sectors, ranging from renewable energy installation to eco-friendly construction materials.
The influx of businesses into these spaces has led to increased foot traffic in areas within these ecosystems, benefiting local businesses such as cafes, restaurants, and retail stores around. The growth of these businesses, in turn, generates employment opportunities and contributes to the overall economic vitality of the region.
In conclusion
On the path to sustainability, the Grade A ecosystems within green office spaces adeptly strike a harmonious equilibrium between modern infrastructure and ecological accountability. However, the influence of these spaces extends beyond environmental preservation. Responsible businesses prioritize eco-friendly and healthy workspaces that align with their values, ensuring sustainable growth in demand for these thoughtfully designed environments.
MD & CEO - Commercial Real Estate
K Raheja Corp
The real estate market in the Asia Pacific (APAC) region has shown remarkable resilience and adaptability despite the rapidly changing global landscape. Geopolitical advancements in APAC economies have led to a transformation of the real estate sector, with technology and sustainability integration gaining traction. These changes have also impacted the development of fast-paced projects.
As the real estate industry around the world catches up with technology-led innovations, there is a shift towards environmentally friendly building practices due to rising carbon emissions. This shift is evident in the updated real estate regulations in the APAC region for 3QFY24. Many APAC countries, such as China, Singapore, Australia and Japan have introduced green infrastructure and technology-integrating guidelines to address this challenge.
Further, countries like Australia and Japan have shifted their focus from specialised asset classes, such as data centres and cold storage, to Build-to-Rent asset types. While demand from occupiers has weakened due to tighter liquidity, investors have shown a keen interest in commercial and industrial real estate. Moreover, a new theme of inclusivity and equal housing rights has emerged in economies such as Hong Kong and Japan, which is expected to impact other APAC countries in the coming years.
Despite the ongoing challenges, APAC economies present an attractive opportunity for investors due to regulatory updates across various classes and asset types. These economies are expected to play a crucial role in channelling regional investments and development.
Download the Report Read MoreLike other commercial real estate sectors, the industrial sector globally has been buffeted by a variety of headwinds and tailwinds over the past few years. Notwithstanding these near-term fluctuations, the underlying driver for the sector in Asia Pacific is one of growth and expansion. This is being fuelled by several sources which is driving transformative change across the region and is creating a range of opportunities for occupiers, developers and investors alike. However, at the same time there are challenges that need to be overcome for the sector to reach its full potential in the region.
Cushman & Wakefield’s latest industrial report offers a comprehensive view of these drivers and challenges impacting the logistics and industrial sector, as well as put a focus on the trends and provides strategies for key markets such as Greater China, India, and Southeast Asia to help navigate these conditions.
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Economy
Despite avoiding a recession in 2023, Singapore continues to face external headwinds from weak growth in major economies. Activity in outward-oriented sectors is thus expected to remain subdued in H1 2024. However, sustained recovery in air travel and tourism, and resilient labour market conditions will support growth in the tourism, aviation-related and consumer-facing sectors. GDP is forecasted to grow 1 – 3% in 2024, faster than 2023’s 1.2% y-o-y growth.
Office
While leasing demand from the tech sector fell in 2023, Singapore’s office market has been resilient, with diversified demand drivers such as consumer, private wealth and flexible workspace sectors. Sentiment could pick up in H2 2024 as interest rates and inflationary pressures ease, economy strengthens, and companies regain confidence to embark on expansionary plans.
Industrial
With some 3PLs in consolidation mode, leasing demand is expected to be more diversified in 2024. Life sciences and technology occupiers remain active in seeking quality spaces, while the manufacturing rebound should translate into more leasing activity by electronics, general manufacturing and engineering firms.
Retail
Ongoing challenges could curtail retailers' expansionary demand this year. However, Tourism remains a bright spot on the back of a strong pipeline of concerts and events. Expectations of a full tourism recovery, coupled with limited supply completions in 2024, should lend support to retail rents.
Residential
Rental and price growth moderated in 2023 alongside sluggish sales and ample completions. Growth momentum is expected to ease further in 2024 amid increasing resistance to high price points and as the rental market digests higher supply from peak completions in 2023.
Investment
Despite cautious investor sentiments through 2023, there is ample liquidity waiting on the sidelines. Due to its macroeconomic stability, pro-business environment and political-neutral stance, investors remain confident and interested in Singapore real estate assets for portfolio diversification and wealth preservation.
This report was originally published in https://www.cbre.com.sg/insights/reports/singapore-market-outlook-2024
Download the Report Read MoreThe new PMRE Monitor 2024: An AI User Manual provides assistance and offers guidance on the path to the future. The results of the market analysis have been used to create a handbook - an AI User Manual - that prepares players of the real estate industry for the use of AI.
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