Diversifying a business gives a businessperson the same protection as a diversified portfolio gives to an investor: less exposure to risk. You never know when an audience will shift its interest from one product type to another. In other words, Diversification is important. because you can never be 100% sure whether an investment will work out, it is prudent to spread our bets.
Diversification in general, is a good idea. But do ensure you don’t use it as a crutch to not do your homework, Advices Corporate Guru and Business Strategist Hirav Shah.
Importance Of Diversification
The past year was one like no other. We faced a global pandemic which served as a major write-off for most industries, including The Real Estate Sector.
The most tried-and-true strategy has therefore become diversification, which may result in more modest gains, but can lead to lower risk, Says Hirav Shah, Famed Business Strategist.
Again, do ensure you don’t use it as a crutch to not do your homework, Reiterates Hirav Shah, India’s Most Influential Business Real Estate Strategist, Consultant, Adviser & Mentor.
Next, Hirav Shah throws light on diversification of The Real Estate Sector Below-
1.Backup & Alternate Segments
a.Flexible Workspaces: Flexible workspaces have been gaining traction in India since last two months. The coming months are likely to witness occupiers adopting a service-oriented role, leading to the growth of space-as-a-service model. Providing customised end-user experience is also likely to gain more ground, especially in the wake of the pandemic. This could give a fillip to managed workspace providers.
b.Data Centres (DC): The rise in usage of smart devices, coupled with increasing amounts of data consumption post COVID-19, has led to a surge in data storage and processing requirements in India, which has further widened the role of DCs. It is being forecast that occupier demand for data storage is likely to increase in the coming quarters, with the country’s DC capacity expected to cross 600 MW during 2020-21.
Supply addition in the coming years is expected to be dominated by the cities of Mumbai, Chennai, Hyderabad and Delhi-NCR.
c.Cold Storage (CS): Following the pandemic outbreak, the demand for CS facilities is now being further fuelled by a huge omni-channel distribution of Food & Grocery (F&G) across tier I and II cities in the country. Currently, the overall cold storage (CS) capacity in India stands at about 37-39 million tonnes. CBRE expects the overall CS real estate stock to rise to 1,400 -1,500 million sq. ft. and the overall CS capacity is expected to reach 70 – 75 million tonnes by 2023.
The post-COVID-19 new normal has been characterised by the evolution of work patterns, which has altered the way both occupiers and developers have operated so far.
While concepts such as wellness, workplace strategies and agility have been around for some time, their enforcement is expected to strengthen and advance further in the coming years. In addition, as operations have commenced in a phased manner, companies could in the future prefer a more distributed workforce. Therefore, it would be reasonable to believe that the workplace would be less centralized and have more widely distributed teams that are appropriately linked through technology. A growing inclination towards a hybrid work model, wherein, a portion of the workforce would be able to work-from-anywhere (WFA) with the option to operate out of remote locations on certain day/s of the week, is also being witnessed.
Hirav Shah’s Vision –
Green Movement Needs To Be Incorporated:
The concept of sustainable development traces back to the 1970s. As part of the United Nations Environmental Program, contractors must create environmentally friendly and resource-efficient structures, from sitting to design, construction, operation, maintenance, renovation, and deconstruction.
According to Hirav Shah, new technologies crop up to complement the emerging trends, but there is a constant objective; “To reduce the overall impact of buildings to human health and the environment.”
To have a secure future, one of the most essential assets to have is real estate, for sure.
But, today the market has taken a hit, in light of changing trends towards renting rather than owning.
This has posed a big threat to the sector with a huge amount of unsold inventory and so, it has become difficult for developers to roll over the funds, in order to begin new projects. But, the good news is that the implementation of a Real Estate Business Strategy / Real Estate Astrology can foresee market outcomes, thereby curbing this concern.
Introducing Leading Real Estate Business Strategist & Astrologer, Hirav Shah as part of your Real Estate Strategy team can help you reap the benefits of certainty in your business strategy.
You now possibly know asto, where to “Ask” and it’s just a matter of a few clicks.