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Innovation led opportunities – CII Report
Tue, 06/29/2021 - 00:00
In an ecosystem with finite resources, innovation ensures optimal utilisation and helps reduce the scarcity gap. The concept of a ‘shared economy’ is one such innovation to utilise resources to their full potential in a sustainable manner. Sharing in itself is not a novel concept, however, it has become a part of consumer behavior over the years. With technology and digitalisation, the concept has flourished and percolated across various aspects of our daily lives. Today, it shapes the way we live, work and play. Shared economy has created a world of disruption, increased ambiguity and at the same time presented unprecedented opportunities. Co-living and co-working are an offshoot of this trend of a shared-economy. Importance given to experience over ownership is leading to the growth of shared living and working spaces. The share of co-working in total office leasing spiked up to 15% in H1 2019 from 8% in 2018 and 5% in 2017. The cumulative space take-up by this segment from January 2017 to June 2019 is at a whopping 10.1 mn sq ft.
The coliving market in the country is expected to grow at a CAGR of 17% over the next five years to touch nearly INR 1 trillion. Other than the emergence of new asset classes, technology has changed the way in which real estate is being transacted and experienced. In earlier days, technology helped only as a back-end tool, as it facilitated maintaining records. Post the dot com boom, technology provided an aggregator model for residential markets and a number of online residential properties platforms for purchase of homes came up. Now, technology has spread across every sphere of the real estate lifecycle. From innovative construction technology, which helps create more affordable housing, to technology led workspaces where space usage is measured by sensors, technology has made its way.
The gap between unlimited human wants and limited resources is a common phenomenon today. The tussle to bridge this gap has resulted in various innovations. These innovations are aimed at ensuring that optimal utilisation of resources is made while narrowing the scarcity gap. With technological innovation and digitalisation, these innovative concepts have flourished and percolated all aspects of our daily lives. It is shaping the way we work, live and play. It has created a world of unprecedented disruption, which presents immense opportunities, though it throws up ambiguities as well. The concept of a ‘shared economy’ is one such innovation. It tries to utilise resources to their full potential in a sustainable manner. From sharing rides and high-end equipment to sharing workplaces and even living spaces - this is truly an age of owning experiences over assets.