Property management takes a new approach
After facing two COVID-19 waves and with the Omicron strain surfacing, properties management services have developed. From being a mere hospitality service provider to empowering agents of ideas like secure and efficient residential complexes and workspaces. Others are shifting their focus from private property management to institutional and commercial activities.
A lot of property management offices are thinking about moving from overseeing private buildings to commercial towers, as the collection of management charges for commercial property is regular and sustainable. Plus, there are fewer intricacies and more focus on overseeing these properties.
Some developers rope in global management firms once their housing project is ready in light of the fact that it builds up their effort to sell.
Some proceed with their service even after handover to the resident’s welfare associations or RWAs. Of late, there have been instances of certain developers delaying on their expenses with dues amounting to crores of rupees. Frequently, RWAs think that it is hard to collect fees from homebuyers who either don’t pay on schedule or are reluctant to bear any hike in upkeep charges.
HOW THIS AFFECTS PROPERTY VALUE
Commercial property owners are serious with regard to paying maintenance charges on schedule as they are aware of the fact that a well-maintained complex has an immediate bearing on property valuation. hence, experts say that collecting from commercial property owners is more regular. Employing facilities management resources in commercial properties is right now lower in contrast to private properties.
Regardless of organizations asking employees to return, footfalls are still pretty much 7-10%. Deployment of labour is right now greatest in retail and residential projects.
SPIKE IN DEMAND
Demand for residential property has picked up over the last few months and it is just a matter of a few months before demand for commercial spaces also gains momentum. The need for offering integrated facilities management solutions is increasing across sectors such as healthcare, education, and government institutions in addition to commercial spaces. This will lead to higher investments in these sectors over a few years. Moving on there will be more investments in ‘technology’ as firms are looking to automate various aspects of the business process.
While the major business comes from global organizations, other customers incorporate information technology (IT) and IT-empowered services, banking and financial industry, pharmaceutical organizations, manufacturing enterprises, shopping complexes, and private buildings, among others. The Facilities Management (FM) business in India incorporates a blend of entities- Global companies, more modest, localized, single service providers like housekeeping or security, and corporate firms who deal with the facilities in-house.
FUTURE OF PROPERTY MANAGEMENT
Experts say that due to the nature of the business, it is hard to put a base number on the industry’s size. A report by technology research organization, ‘Technavio’ says the facility management market size in India is anticipated to grow by $13.43 billion, advancing at a yearly rate of around 14% during 2021-2025.
Industry research proposes that 66% of structures that will exist in 2040 are yet to be built and the demand for strong management of these structures from an energy efficiency perspective and from an occupant experience viewpoint will produce a gigantic potential in the upcoming years.
Research by JLL India says that this industry represents almost 40% of carbon emission and gives an opportunity for facility management specialists to build efficient, sustainable projects around green building and renewable energy.
SHIFT IN EXPECTATIONS
Coming out of two covid-19 waves, the nature of workforce in India have changed completely and individuals are expecting a new experience from their workplace. Which would mean more focus on employee centric planning to give them new and better employee experience.
Post-pandemic change in how businesses operate, have created an opportunity for every company to change how it functions and provides its services to others. Similarly, this unlocks various opportunities for the facilities management industry beyond providing the traditional services it did over a few years ago. This would mean that, facility management is going to grow tremendously over the next few years.
With technology getting more advanced and efficient, each and every aspect of a building can now be made much better, sustainable, and efficient. A lot of development has already taken place like virtual work environment, introducing automation to facilities management and efficient operations of amenities.
we also found a great article about facilities management on money control
