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CRE Matrix Attends Midday BDA Expo 2022

CRE Matrix was proud to attend the Midday BDA Expo 2022 which is currently ongoing from 15th to 17th April 2022. Our CEO, Abhishek Kiran Gupta was invited as a special guest to speak on the importance of data analysis in the real estate sector at the first-panel discussion at the conclave on Day 1. 

Abhishek Kiran Gupta

Key Highlights from the Panel Discussion: 

  1. Abhishek Kiran Gupta opined that data is central to decision-making for better project design, improved project development, enhanced broking by advisers, better lending opportunities by banks, higher-quality investments by investors, and so forth. 
  2. Abhishek Kiran Gupta shared that the youth in the real estate industry have multiple choices to shape their career from development to broking to research & advisory to finance to fractional ownership and so on. 
  3. Abhishek Kiran Gupta advised all young entrepreneurs with start-up ideas to focus on building sustainable and profitable businesses and not pursue valuations and quick exits. 

Key Highlights from the Expo:

CRE Matrix visited over a dozen developer booths and spoke extensively with key sales representatives. 

  1. The event showcased housing sales of 15 apartments on day 1 till 4 pm. 
  2. The majority of the projects highlighted at the expo were from the Western Suburbs Macro-markets between Andheri to Dahisar. 
  3. Most projects were redevelopment or slum rehab projects. The event demonstrated a couple of FREEHOLD land projects as well. 
  4. It was very promising to witness the JDA/JV/Joint projects between developers. The Western Suburbs market developers appear to be very cordial with each other and display healthy competition with each other. 
  5. There has been a slowdown in housing inquiries and housing sales post a rise in stamp duty rates by 1% in Mumbai. However, the sales team believes home buyers will have to adjust to this new reality.
  6. Developers humbly articulated that they are most likely increasing home prices in mature projects citing a rise in raw material prices. 
  7. We were extremely impressed to witness that several developers have opted to tie up with brokers on Mandate sales wherein brokers exclusively market these projects directly through social media or mobilizing channel partners.

Our CEO Abhishek Kiran Gupta was honored to attend the real estate conclave and be able to share his wisdom. The 3-day Midday BDA Expo 2022 will conclude on 17th April. So, if you haven’t visited yet, now is the time to check it out! 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Co-Working Spaces – The New Work Culture Gripping the Nation

What is co-working? As remote work and hybrid work continue to increase in popularity, more and more people are asking the question, what exactly is a co-working space? Generally speaking, co-working is when several people from different companies share an office space, thereby allowing for cost savings and convenience via the use of common infrastructures, like equipment, utilities, receptionists, and custodial services. 

Co-working spaces deliver the same amenities you would find in a conventional office, along with a lot more. A chief differentiator is basically the flexibility since you don’t have to sign a long-term lease in a co-working space. 

Decoding the Immense Popularity of Co-working Culture 

Over time, co-working has been slowly but surely revolutionizing the work culture across the globe and has become popular in India as well. As the demand for shared office spaces rose throughout the country, it was felt more significantly in category A cities as compared to other cities in India. The rise of start-ups and a new generation of workers who favor a flexible work environment led to the trend for a co-working culture in these cities. 

Here are a couple of reasons why a co-working work environment is trending in India:

Cost-Effective Alternative to Renting and Leasing 

Thanks to the rapid rise in the rates of commercial spaces across India, it has become extremely expensive for a company of any size to lease a conventional office in an urban area. In such a scenario, co-working works as a breath of fresh air. To lease a conventional office, you will have to fork out a fixed initial amount that comprises a refundable deposit, advance maintenance charge, and other expenses for necessary entities. 

But if you choose a co-working space in Mumbai, all you will need to do is pay for a small monthly rent for your seat. This rent will be significantly lower compared to the monthly rent of your conventional office. Moreover, you will be able to use many amenities such as meeting rooms, printers, and so forth, at a reasonable rate or no additional cost. 

Preference of Flexibility

In recent times, there has been a change in the way office-goers are expected to go to work. Flexible timings and a more laid-back work environment have more or less become the norm. Offices that are able to offer such a setting are succeeding at keeping their attrition rate low. 

A simple and effective way to attain this goal is to choose co-working spaces. Just stroll into any co-working space in India, and you will witness vibrant colorful interiors that will give you a welcoming feel. Usually, a bright environment can lead to a rise in productivity and efficiency on part of the employees. 

Scalability Issue 

One of the major reasons why conventional offices are not as popular anymore is because of problems related to scalability. If you rent a conventional office in India, you will not be able to increase or downsize your team as per your will. On the other hand, co-working space in India delivers the perfect solution to this problem. 

You can easily increase or downsize your team based on your requirements. All you have to do is rent out a couple more seats to accommodate your expanding team or let go of some seats to downsize. 

CRE Matrix is India’s most preferred authentic data analytics platform that offers accurate and authentic data of co-working spaces that can help in competitive analysis.

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Rise and Shine of Commercial Office Spaces in India

There is no denying that the Indian commercial real estate market is enormous and is witnessing a healthy rise in demand in 2022 and this momentum is projected to continue for the rest of the year. 

Although the pandemic had a significant impact on the country’s increasing office segment with occupiers cutting back on spaces, surprisingly, the market has bounced back in 2021, with essential occupiers returning to the office. There is an immense belief that a strongly recovering economy and powerful progress in India’s startup ecosystem are going to help advance the growth trajectory upwards.

According to a joint report released by CRE Matrix and Colliers ‘Startups Scale Up’, startups are estimated to lease approximately 29 million sq. feet between 2022 to 2024, a 1.3 times surge from the 2019-2021 duration. The rise in entrepreneurship and the fast development of startups has been one of the most fascinating trends in the office space market in India. 

Startups are believed to be the fastest developing occupier growth among other occupier groups, and presently take up 10% of commercial office spaces. This has led to many openings for office space providers to reconsider and reposition their workplace offerings to draw a variety of occupiers. 

According to the India Office Report Q4 CY’21 by CRE Matrix, the past year has witnessed a rising demand for office leasing, an increase in office stock, stabilization of office vacancy, a rise in rentals, and sustained job growth in the startup space. Thanks to increased digital adoption across all businesses and the rise in vaccination numbers, there is hope that office demand in 2022 may return to pre-Covid levels. 

Increase in demand from Various Sectors 

More than 8,100 digital companies have been set up across the metro cities in recent times. These companies have generated around 6 lakh jobs in India. Increased availability of office space in India has propelled demand from banking, financial services, insurance (BFSI), manufacturing, and consulting sectors. 

For instance, Noida and Gurgaon alone have almost 8.5 million sq. ft. of commercial space in the pipeline. According to the India Office Report Q4 CY’21 by CRE Matrix, the majority of the demand for office leasing continued to be Tech (startups and IT/ITeS majors), BFSI, and Co-working segments. They added almost 58% to office demand in 2021 and 63% in the last quarter.

Factors Propelling Growth in Commercial Office Space Post Pandemic 

  • Co-working spaces are increasing rapidly in the top urban cities of India
  • The economy recovered fairly quickly and numerous companies reopened offices
  • Reverse migration to tier-1 and tier-2 cities and the requirement for office infrastructure in developing locations thereby drove commercial realty development in these cities. 
  • Companies are now providing improved facilities, digital integration, health, and safety features.
  • Infrastructure has improved a lot in smaller cities with numerous initiatives by the Government.
  • There has been a rise in the flexible office space in India. The businesses are planning to continue with alternative work models to maintain flexibility at workstations and enhance business profitability. 

According to the India Office report by CRE Matrix, there has never been a more significant period for the increase in demand for commercial office space in India, particularly after the damage inflicted in the economy thanks to the pandemic. Thanks to digitization across all industries, there will most likely be huge chunks of development in commercial office demand this year. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Real Estate vs. Other Investments

When you think of investing, you can do it in a variety of ways including real estate, bonds, stocks, CDs, or even gold. Thanks to the array of options, it often happens that one investment choice is more lucrative than the other. Based on current market conditions, it is also important to be aware of the type of investment to avoid and when? 

Let’s take a look at real estate investment vs. other investments to help you narrow down the options that are suitable for you.

Real Estate vs. Stocks 

Stock prices are deemed to be more unpredictable as compared to real estate. The rates of stocks can fluctuate quicker than real estate prices. The instability can make you apprehensive unless you plan to purchase and hold stocks, despite the unpredictability. 

Investing in real estateissimpler and better to understand than stocks. The housing sector in India is enormous which makes the home-buying journey multifaceted. But despite the complexity, the basics are quite simple. Moreover, owning a tangible asset can make you more in control of your investment when compared to purchasing slivers of ownership in firms via shares of stocks. 

Real Estate vs. Bonds

Despite their low-risk nature, investors may realize that bonds do not deliver the same profitability when pitted against other investments, particularly real estate in India. In numerous cases, the returns could be considerably affected by the rate of inflation. On the other hand, you will observe significant real estate growth and development during inflation. 

As material and labor expenses rise, rent typically follows, resulting in real estate investors achieving greater profits during this period. Bonds are not known to deliver the best returns as real estate. Across the board, rental properties generally outperform bonds thanks to their capability to produce cash flow, even during inflation or low-interest rates. 

Real Estate vs. CDs

Despite the low-risk investment opportunity, Certificates of Deposits (CDs) typically have lower profit margins when pitted against real estate. The potential for profits in CDs is directly affected by interest rates. When they are low, investors will not be able to get a high return on investment. 

It could take approximately 5-10 years for CDs to mature. Investors will not be able to use their funds during that period. But real estate showcases more liquidity. Even if investors are not able to sell a property, you can still tap into the current equity in many ways. 

Real Estate vs. Gold

Investing in gold may be a simple process but it is a long waiting game as compared to real estate investing. Thanks to the concept of price appreciation in real estate market, you can earn revenue as you wait for an asset to escalate in value, thereby leading to a higher overall cash flow. 

In a nutshell, while stocks, bonds, CDs, or gold are solid forms of investment and each of them has its own pros and cons, real estate delivers cash flow that is directly connected to the decisions you have made. Overall, investors may observe that real estate signifies the likelihood to produce yearly cash flow and profit from appreciation over time. 

At CRE Matrix, we have assessed vital real estate data comprising residential, commercial, retail, and warehousing, across different industries in India. CRE Matrix’s product IndexTap helps in making real estate investments with its extensive catalog of residential properties in MMR. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Importance of Data Intelligence in the Real Estate Market

Nowadays, data is changing the way businesses operate all over the globe by delivering rapid, valuable, and key insights. The most vital ‘raw material’ pushing the real estate market is data. It helps in unraveling new potential levels, from lead generation to work, efficiency, and ultimately reporting the findings. From evaluating a plethora of surveys and assessing products to developing future policies and solutions, data collection in real estate has slowly evolved into a distinct field of study. 

Let’s take a look at how data can contribute to the ever-developing real estate market:

Location

For both commercial and residential real estate, data can prove to be immensely useful. Real estate data providers in India offer their clients significant insights into the existing market patterns and trends. They ascertain the viability of various locations that are contingent on rental income, investment return, ratings, traffic, and occupancy. 

Customer Trends 

It is vital to have an in-depth understanding and awareness of the market trends when you’re investing in a residential or commercial property. Real estate developers must realize and comprehend the requirements of the customers, and this is where the significance of data enters into the picture. Developers can invest better if they understand basic factors such as competitors, the need for amenities, affordable housing, and so forth. 

Evaluating Competition 

If you’re the best real estate data analytics company, you would help in assessing the performance of the competitors. The data analytics firm offers comparable data for you to measure where you stand in the market. After a comprehensive analysis, you can come up with strong strategies to combat the competition and improve your position. 

Investment Performance 

Similar to two peas in a pod, no two properties can be identical. The different variables of every property are unique. It also applies to two separate properties in a single building. As time passes, these values also go through modifications. This is why it has become taxing to trace the sub-market performance of the properties. This is where data intelligence from a cutting-edge real estate analytics platform can assist in scrutinizing the fluctuating rate of the assets over time. 

Simpler for Home Buyers

Data intelligence is not just to benefit brokers and real estate developers, but it can also make it easier for those who wish to purchase or rent homes. It also helps in simplifying the research process to zero in on your dream house. The rates of various real estate properties can differ, thereby ascribing numerous factors such as neighbourhood quality, connectivity, available transportation modes, and so forth. In this scenario, real estate data analytics India can aid in accelerating the decision-making of the buyer, about the location.

At CRE Matrix, we have evaluated crucial real estate data of several companies across India. CRE Matrix is India’s most preferred authentic data analytics platform that allows stakeholders from various industries to evaluate and compare leasing data and more. 

For more such exciting analysis and details on real estate, visit CRE Matrix.