The COVID pandemic has shaken up property markets across the globe across various assets classes. The residential market in the US and other established market has seen wild upswings. Whereas the commercial market has witnessed a crisis with heavy lease cancellations. Even as we emerge from the uncertainty about the global pandemic, the future of the property market is still cautiously optimistic. In such a scenario it becomes important to leave no stone unturned to evaluate every means to gain the best value from your property.
Attract the Right Profile of Clients
The COVID pandemic has brought the global tech giants to the forefront of real estate acquisitions in every destination across the globe. In the face of closure of leases and office premises during the pandemic, tech companies have been aggressively acquiring and leasing office spaces. With most other sectors still emerging from the setback of the COVID pandemic and grappling to return to normalcy, tech companies provide the most lucrative clients for real estate players.
With office vacancies at an all time high, tech companies have the option to cherry pick premises from an excess supply from vacancies in the market. In such a scenario, providing amenities that resonate with the needs of the tech industry and its employees often becomes a mandatory requirement. What may have been considered as an option before can today become a bare minimum requirement in the current scenario. There is also a considerable overlap between tech employees and the early adopter of new technologies like electric vehicles. The extremely low cost of running and maintaining electric cars also provides an impetus for more rapid adoption among consumers than was previously predicted. This allows developers and owners of commercial, retail and residential properties to attract the right profile of clients.
Meet your Net zero targets
With a growing focus on climate change and sustainability, governments and corporations across the world have begun to encourage the management of carbon footprints and sustainability practices. Climate change has become a non-negotiable issue for both government policy and market regulations. Leading corporations have already taken voluntary initiatives to drive the reduction of their carbon footprint under the EV100 initiative. ESG has also become a critical decision point in the investment process at any major financial institution. Increasingly, the compliance to Environmental, Social, and (Corporate) Governance regulations has grown to become an eliminating factor for transactions and selection of partners.
Employee commuting is an integral element of the carbon footprint calculations for any major organization. Providing charging infrastructure and additional support for employees to use Electric Vehicles can be one of the easiest and cheapest methods for organizations to reduce their carbon footprint.
Various state governments have been proposing and promoting their individual policies for electric vehicles over the 5 years. The state government of Delhi has taken the lead in this regard and mandated 5% of all parking space in new buildings to be dedicated for charging EVs. Recent policy announcements by the state governments of Gujarat and Maharashtra in July 2021 are also extremely encouraging. This also is expected to gain momentum in the future with various state governments competing for manufacturing bases in their states by offering the most forward thinking policy frameworks. The mandates for electrifying parking spaces are confined not only to future buildings. There are significant proposals underway to mandate electrified parking in existing buildings also. The seriousness of the various state governments in India is also shown by their initiatives to completely electrify their own fleet of government vehicles
The development of public charging stations and mandates for converting parking spaces for EV charging is an integral part of the EV policy across the policy documents. It is expected that by 2025, every state in India will establish and notify their own EV policy. Along with the state governments, local municipal bodies are also enforcing EV chargers to be mandated for passing building plans and other permissions.
Future-proof your premises
As the price of batteries and, therefore, electric cars collapses over the next 3 to 5 years, the Adoption of EVs is inevitable. It is only natural that the push for more parking spaces to be converted to electric will be accelerated over the next 3 years across the globe. It would merit players to work on plans for provisions
Norway has been the global leader for the adoption of Electric Vehicles with almost 90% of all new car sales being electric. The country has also been a leader in the provision of charging infrastructure also. From the current 12 % penetration of charging stations in all parkings in the country, it has set a target of making half of all parking spaces to be electric. Going forward, most nations are expected to follow these best practices and trends. The standards being set overseas are expected to eventually trickle down to the Indian market.
The Indian automobile sector has already witnessed a shift. Manufacturers who are slow to adopt EV technology are losing market share despite their massive heritage and market share. Similarly, in other sectors such logistics and real estate, a similar trend is expected to follow. The early adopters of the EV revolution stand to gain a more preeminent position in the market. Whereas the laggards will watch their positions erode as time goes by. The time to focus on adopting EVs as part of real estate begins today, rather than in the future