How Technology And Globalization Can Influence Real Estate
The Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) will invest $200 million in electronic manufacturing sector in Greater Noida. The government has promised complete support to TEEMA. The incentives Uttar Pradesh's infrastructure and industrial investment policy and electronic manufacturing policy of the state promises will apply to TEEMA's project. TEEMA plans to facilitate the formation of an electrical and electronics manufacturing cluster in Greater Noida.
Technology and globalization would influence real estate markets in ways we usually do not anticipate.
1. To begin with, technology and manufacturing firms will drive up office rents in Greater Noida, raising real estate prices. Moreover, technological innovation increases wealth in a society, indirectly strengthening the real estate market by raising demand for real estate stock and services.
2. When manufacturing firms produce better, improvised products, space consumption of real estate tenants would be far less. Today's computers are compact, and increasingly compact computers have broadened the range of possible ways in which office space can be utilized. Compact computers like small laptops have also made smaller office spaces an option, though this way not the case not very long ago.
3. Technology also optimizes real estate space consumption by raising efficiency. Improvised products lower human labor that is required in the production process. Technological advancement also lowers the effort required to manage employees engaged in the production process. To understand the broader implications, consider how computers, mobile phones and various applications have made it easier for employees and top-level management to interact with each other and co-ordinate more efficiently, consuming less time and space.
4. When there is greater demand for electrical and electrical goods, there will be greater demand for real estate in India, especially in places where markets exist for new goods.
5. When there is greater wealth among technology entrepreneurs and employees in such firms, this would lead to greater consumption and greater real estate infrastructure to support such consumption. Property in India is likely to get a major boost in this scenario.
People often forget the role technology played in optimization of real estate space. We forget that it was changes in modes of transportation that made suburbanization possible. People were able to move to suburbs and still access the amenities of the city when economies became more car-based. It was the invention of elevators that made skyscrapers possible. Globalization in manufacturing opens up enormous possibilities that we cannot even begin to imagine today.