Voices From India How Will People Live - Work - Shop in The Future

Adaptive Spaces
Voices from India:

How will people live,
work and shop in the
future?
LOCAL India
RESPONSE Live-Work-Shop
Survey
CBRE RESEARCH
FEBRUARY 2023
Adaptive Spaces Voices from India: How will people live, work and shop in the future?
Executive Live Work Shop
Summary Perception shift in ‘generation rent’
70%
Greater appetite for flexibility
69%
Omnichannel is omnipresent
90%
Nearly six years after CBRE brought to the fore the
aspirations of the millennial generation in terms of how of millennials now prefer to buy over rent, a of the respondents prefer to work at least three of the respondents shop across multiple
they live, work and spend their money, we went back to complete reversal of the trend in our 2016 days from office. Gen Z and early millennials channels
the drawing board to track how each generation has survey show greater inclination for this schedule
evolved since then. Our Live-Work-Shop survey,
conducted late last year, polled more than 20,000 Homebuying sentiment remains robust Workplace quality matters Upbeat outlook for personal finance
people worldwide, from Gen Z to baby boomers. The
72% 80% 80%

aim again was to understand how they will live, work
and shop in the future, and how the shifting dynamics
would impact the real estate they use.
The survey featured around 1,500 respondents from
India, and its findings revealed fresh insights for real of the respondents who are planning to move of the respondents put greater importance on of the consumers are confident about their
estate occupiers, developers and investors. We believe in the next two years want to purchase a house COVID-19 safety measures and sustainability personal finances for the coming years.
these stakeholders can harness our survey findings to features in workplaces Millennials and Gen X are more optimistic
make informed decisions and strategies to ensure that
our real estate spaces are positioned to meet users’ Convenience on their minds Need for speed Towards a green planet
evolving needs.
The adjacent graphic identifies and summarizes the
key conclusions from the survey for India. Below is a
link to an interactive data dashboard that features
70% 75% 70%
dynamic delivery of key survey result.
of the respondents prefer better of the respondents prefer to reach work more of the respondents stated that they have opted
transportation infrastructure with a shorter speedily i.e. a shorter commute not exceeding for environment-friendly products in the past
commute time. 30 minutes. This is a shift from the previously
Link to Dashboard ► cited 45 minutes in the 2016 survey
2 CBRE RESEARCH © 2023 CBRE, INC.

1
About the Survey Survey Size
21,000 Global respondents
Introduction
9,000 Asia Pacific respondents
1,500 Indian respondents
The survey is designed to understand how Definitions

people want to live, work and shop in the future.
Insights from the survey will be used to inform

real estate occupiers, investors and developers
to ensure real estate is positioned to meet Gen Z Late Millennials: Early Millennials Gen X Baby Boomers
users’ evolving needs.
Age 18–25 Age 26–33 Age 34–41 Age 42–57 Age 58+
18% of respondents 12% of respondents 15% of respondents 33% of respondents 22% of respondents

01
Live
1
LIVE On the move:
Indians display more
flexibility towards
moving or relocating
as compared to global
counterparts

1.1
LIVE Almost half of respondents Figure 1.1: Have relocated in the past two years Figure 1.2: Planning to relocate in the next two years
want to move; centralised
area remains most popular
YES YES
• India’s residential sector witnessed unprecedented growth in the
past two years. This was owing to strong policy push and 31% 44%
incentives such as stamp duty waivers, lower home mortgage
rates coupled with attractive discounts and schemes rolled out
by developers. The past two years have seen a realignment in
homebuyers’ priorities and the need for owning a house has
been further accentuated due to the uncertainty that the NO NO
pandemic ushered. Corroborating with this, almost 1/3rd of
respondents moved to new homes in the previous two years. 69% 56%
• As the pandemic wanes, this confidence reverberates amongst
homebuyers as they are more comfortable in planning for their
future. The survey found that respondents displayed a stronger Where? Where?
intention to move to a new home in the next two years (44% vs 53% 49%
31% in the previous two years). This is significantly higher when Closer to city centre Closer to city centre
59% (same / different city) 59% (same / different city)
compared to both global and APAC respondents. 52% 49%
• In contrast to the widely held belief that most people are seeking 31% 35%
More remote location More remote location
to move out of urban areas as flexibility at the workplace 34% (same / different city) 31% (same / different city)
emerges as a dominant theme, areas close to the city centres 42% 41%
still remain the most sought after among those planning to 16% 17%
move. At the same time, it is interesting to note that as most 7% A different country 10% A different country
cities in India swell to the beam, the definition of a true city 6% 10%
centre continues to evolve. Most leading cities, especially Delhi-
NCR, Mumbai, Bangalore, Pune are witnessing the emergence of India APAC Global India APAC Global
suburbs that in many ways redefine the erstwhile “city centre”. Source: CBRE Research, 2022.

1.2
LIVE Gen Z and millennials Figure 1.3: Respondents planning to move Figure 1.4: Preferred location of Indian respondents
display stronger intention to
move; locations near the city Gen Z
45%
54%
54% 29% 18%
centre preferred amongst

most age groups Late millennials
55%
54% 34% 13%
42%
• More than half of Gen Z respondents plan to move to a new
home in the next two years, compared to only 29% of baby
boomers. This indicates that upcoming housing demand will
47%
primarily be driven by the younger generation. Early millennials 52% 32% 15%
35%
• In our 2016 edition where the survey focused on millennials, 82%
of the millennial respondents at that time lived with their parents.
This could be one of the reasons why this age group has one of 44%
the highest shares of respondents that plan to move from their Gen X 37% 42% 21%
29%
current accommodation.
• In contrast to the APAC region, almost half of early millennials
and Gen X respondents were actively planning to move in the 29%
Baby boomers 58% 31% 11%
next two years, compared to 35% and 29% across the APAC 21%
region respectively.
India APAC Closer to city centre More remote location
• Except for Gen X, all other generations displayed a higher
(Same / different city) (Same / different city)
preference for locations near the city centres. Gen X displayed a
slightly stronger preference for remote locations and a greater A different country
desire to move to another country as more experienced Source: CBRE Research, 2022.
professionals seek overseas opportunities. In fact, across age
groups, the preference to move to another country is the highest
in India (when compared to global or APAC respondents).

1.3
LIVE Affordability not the sole Figure 1.5: Reasons to move in the next two years, India
driving factor while choosing For better quality property 52%
a home; respondents also 42%
want a better quality
For
For aa bigger
biggerhome
home
Home
environment 30%
property and surroundings For outdoor space (e.g., balcony, yard, or rooftop)
For a space to accommodate remote working 26%

• As incomes levels rise, better quality properties and
surroundings were cited as the main reasons to move in the 52%
next two years, replacing housing affordability and saving For better surroundings / community
money in the previous two years. However, home Move to a place with more relaxed distancing / travelling 28%
affordability continues to figure amongst the top three restrictions
Neighbourhood
factors to consider while looking at moving to a new house. Move close to transport hubs 25%
In fact, affordability was one of the major factors why
Move close to retail and leisure amenities 23%
millennials chose to stay with parents in the 2016 edition of
our survey.
47%
• Gen Z displayed a significant shift in attitude when deciding Affordability of housing
to move to a new home. In the previous two years, most Financial
To save money 44%
moved to save money. As pent-up savings and lifestyle
quality come into play, the main motivations over the next
two years include better surroundings and more attractive For better / new job opportunities 42%
job opportunities.
To be closer to where I work 36%
• In the previous two years, the top priority for millennials was Work
related I'll have fewer days spent in a formal
affordability as a key parameter to move to new homes. workplace 19%
However, the survey indicates that those planning to move
Lost job 6%
in the next two years would be willing to pay a premium for
better quality properties and surroundings. Source: CBRE Research, 2022.

2
LIVE Homebuying
sentiment
remains robust

2.1
LIVE Of those planning to move, Figure 2.1: Planning to move in the next two years, India
more than 70% want to buy
• The shared economy was a concept that gained significant momentum across various RE
categories before the pandemic hit. However, the pandemic has in many ways altered
homeowner needs and priorities, with ownership being preferred over the uncertainty of
renting/short-term leases.
• More than 70% of respondents planning to move in the next two years preferred to buy a
house than rent. While India has always been an economy where home purchase is preferred
over renting, the uncertainty around the pandemic has further amplified the need for
homeownership and security.
• The pandemic highlighted the benefits of community living, which has prompted a shift in
consumer preferences from standalone houses to gated communities. This change in
sentiment was notable in the survey as more than 60% of the respondents already owned a
home and were planning to relocate for better quality properties and surroundings.
• Homeownership in India remains one of the most basic, yet aspirational needs. However,
due to lower disposable income levels; coupled with high capital values, a majority of
homebuyers opt for a mortgage. As per the Reserve Bank of India (RBI), home loan disbursal
witnessed a growth of almost 20% y-o-y1. Corroborating with this, about 61% of the
respondents planning to buy a house planned to use mortgage, although the coming year
may pose some hindrances due to rising interest rates and limited market stimuli.
• While the survey indicated that a recognizable proportion of respondents do require a
mortgage, late millennials (45%) and Gen X (56%) dominated this space.
• Almost 50% of the respondents planned to switch from renting to buying. The absence of an
organised and transparent renting market has further accelerated the demand for home Buying Renting shared Renting shared Student Others/
purchase. accommodation accommodation accommodation short-lease
1 RBI: Sectoral deployment of Bank credit – November 2022
Source: CBRE Research, 2022.

2.2
LIVE People across generations Figure 2.2: Buy vs rent sentiment for those planning to relocate, by age group
prefer to buy than rent a
home; significant shift in Gen Z 59% 20% 7% 11% 3%
millennial attitude towards

home purchase
Late Millennials 67% 23% 5% 1% 4%
• When compared to other global markets, respondents in India
displayed the strongest preference to buy than rent. The survey
found that renting properties in urban cores was popular among
younger generations and migrant/expatriate workers, while other Early Millennials 71% 24% 2% 3%
age groups preferred to purchase a home.
• The survey cited a greater appetite (at least 59%) for buying a
house across age groups that were planning to move in the next
two years. Among all age groups, Gen X respondents displayed the Gen X 84% 13% 3% 1%
highest preference (84%) towards home purchase.
• On expected lines, baby boomers was the only age group that
displayed no preference for renting a shared accommodation. Baby boomers 74% 17% 3% 6%
• While a majority of Gen Z respondents preferred to buy in the
coming two years, more than 40% still wanted to opt for various
Buying Renting private accomodation
types of rental accommodation.
Renting shared accomodation Student accomodation
• Our 2016 survey indicated that millennials were the generation rent Other / short - lease
– 68% of our respondents at that time not living with their parents
had chosen to rent. However, in a complete reversal of trend, Source: CBRE Research, 2022.
almost 70% of both early and late millennials would prefer to
purchase when planning to relocate.

2.2
LIVE
Figure 2.3: Buy vs rent sentiment amongst respondents, by market
30
~72% 25 PLAN TO RENT

Indians looking to move in the Finland
Denmark
% of respondents that plan to rent

next two years wish to buy a
20
house - the highest among all
Sweden
surveyed countries United States
Australia Italy
15 Germany Canada Norway
France Korea
Mexico Brazil
Japan Spain India
10 Hong Kong SAR
United Kingdom
Netherlands
Singapore
5
Mainland China
PLAN TO BUY
0
0 5 10 15 20 25 30 35
% of respondents that plan to buy Bubble size represents GDP of each country

2.3
LIVE Indians spend a lower Figure 2.4: Rental or mortgage expense as a percentage of gross household income, India
portion of their income
on housing Global
• While home ownership is considered as one Asia Pacific

of the most basic needs in India, saving
continues be the overarching theme for
most households with low appetite for high India
debt levels - 73% of respondents in India
spend less than 30% of their household
income on housing (rental accommodation).
Did not move
Moved in the past two years
No plan to move
Plan to move
0 10 20 30 40 50 60 70 80 90 100
10% or less 11 – 20% 21 – 30% 31 – 40% 41 – 50% More than 50%

3
LIVE Paradigm shift
in home selection
criteria since the
pandemic’s onset

3.1
LIVE Health & safety, workspace at Figure 3.1: More important home selection criteria since the pandemic’s onset
home and sustainability are 86
increasing in importance. 66
76
Quality of property on health and safety
54
Dedicated space for work at home
• With the pandemic having raised the importance of health and
76
safety, the demand for professional property management 54
Sustainability feature of the property
services, particularly in apartment buildings has been on the 75
rise. 58
Transportation infrastructure
• There is also an increasing need for a dedicated office space at 75

Pricing of property
60
home as hybrid working becomes more widespread.
71
• In section I, we indicated that a majority of the respondents 53
Commute time to workplace
preferred to relocate closer to the city centre. With an increase 70
Outdoor space within the property
in the number of employees returning to the office (RTO) and 49
occupiers opting for a hybrid style of working, more than 70% 70
43
Fitness and sports facilities
of the respondents wished to relocate to a house with better
transportation infrastructure and shorter commute time. 67
Smart home technology
46
• Furthermore, the survey found that respondents displayed a 65
stronger inclination for sustainable projects and preferred 47
Dedicated area to support remote working in the community
properties with features such as solar rooftop, EV charging 64
Support parcel / food delivery
stations, water management, waste recycling, etc. However, 51
this would vary across cities (tier I / II), income levels, 64
Quality if retail/ leisure in the catchment are
understanding of sustainable practices and availability of such 51
projects as the penetration of sustainability practices across 59
Housing rent
projects, especially those in the affordable and mid-end 50
category remains low. Source: CBRE Research, 2022.
India Asia Pacific

04
LIVE CBRE’s
recommendations
for investors /
developers

4.1
LIVE Cater to the younger generation;
location and facilities hold the key
• The survey reflects that majority of the respondents, notably Gen Z and late
millennials (aged 33 years or less), intend to relocate in the next two years.
This was underpinned by the strong sales witnessed in 2022; we thus expect
the housing demand to remain healthy in the coming years too.
• While a majority of the respondents intend to purchase a house, we should
not discount the remaining cohort looking for rental accommodation – 40%
of Gen Z would prefer to rent rather than purchase. While 20% of Gen Z
would prefer a private rental accommodation, 18% look at student housing
and shared accommodation as an option. Since this is the age group that will
drive rental accommodation, developers must outline strategies to
understand and tap demand well in time.
• When it comes to location preferences, across generations, Indians have
displayed a greater affinity towards urban areas. However, as cities evolve,
new core nodes are created, resulting in older business districts becoming
non-core / obsolete. As these new nodes become the focal point of
employment opportunities, we usually witness a rise in preference towards
the ‘new city centre’. Therefore, we believe that developers must develop the
foresight to identify these pockets and align themselves with the evolution of
their focus cities and the changing definition of city centres.

4.2
LIVE Focus on upgrading the quality of
property and surroundings, emphasis
on physical and social infrastructure
• The Indian house hunters’ priorities have changed since the pandemic – in
addition to affordability, better quality property and surroundings have
emerged as the key reasons for relocation. Families are now laying equal
emphasis on a property’s quality and surroundings as on the unit itself.
Therefore, attractive and thoughtful interior designs, well-planned outdoor
areas and surroundings must now be complemented with remote working
infrastructure.
• Furthermore, working from the comfort of the house has significantly
reduced the average commute time, and most employees have now become
habituated to this. This is evident from the fact that more than 70% of our
survey respondents stated that they preferred a shorter commute with good
transport infrastructure. CBRE thus believes that the new housing demand
will be centred around localities with good physical as well as social
infrastructure.

4.3
LIVE Strengthen wellness and safety
features; focus on sustainability
• Subjects that remained on the peripheries of the homebuyers' decision-
making matrix are now increasingly becoming core to these conversations.
These include wellness & safety as well as sustainability. Residential projects
with a healthcare element are increasingly finding more takers due to
heightened importance of health & wellness. This might provide an impetus
for developers to set up healthcare centres on their own or tie up with third-
party players.
• While the topic of sustainability is slowly gaining traction in India, a disparity
still persists amongst homebuyers mostly due to their income levels. While
76% of our respondents place importance on sustainability factors while
choosing a property, this number will vary across categories and income
groups. Low to mid-income individuals continue to give more importance to
home ownership and affordability over sustainability, whereas the high-
income group is finding value-add in sustainable projects. Nevertheless the
survey is a precursor to the type of facilities end users look at while
evaluating projects; developers looking to target both segments must strike
the right balance between these differing opinions and design projects as
per the catchment area.

02
Work
1
WORK Flexibility

1.1
WORK A desire for greater Figure 1.1: Current and preferred split between office and remote working
flexibility globally
Current Preferred
• Working in office at least three days per week
would continue to remain the norm in India with Fully office 29% 15%
69% of the respondents preferring this setup.
Working in office
• Preference for working in office under the pure Hybrid – office first
37% at least three
(4 or 5 days per week) 34%
hybrid working* model is likely to increase from days per week
current 67% to 78% in the future in India - in
line with global and APAC trends. Hybrid – office first
(up to 3 days per week) 14% 20%
Hybrid – remote first

(At home / remote - up to 3 days per week) 8% 13% Hybrid
working
Hybrid – remote first
(At home / remote - 4 or 5 days per week) 8% 11%
Fully remote 4% 8% Remote working

Source: CBRE Research, 2022
*Hybrid working excludes both ‘fully office’ and ‘fully remote’ categories
Please note all values in the charts denote the percentage of respondents.
Percentages may not total 100 due to rounding

1.2
WORK Employees in India Figure 1.2 (a): Alignment with work guidelines Figure 1.2 (b): Expectation gap between company and employee
are relatively more – India vs APAC
aligned with their

employers’ current Fully office
15%
18%
work guidelines At least
Mostly at the office 34%
three
• Nearly 57% of respondents in India (four or five days days a
per week) 35%
were fully aligned with their week from
employers' current work guidelines office
as compared to 42% in APAC (refer Equal mix 33%
(three days per
figure 1.2 (a)) week) 38%
• A comparison of these findings with
the results of India Office Occupier Mostly remote 11%
Survey 2022 highlights that the (four or five days
per week) 6%
employees and employers were
largely aligned with working in the
office at least three days a week 8%
(refer figure 1.2 (b)) Fully remote
0%
Fully – Partially – Partially – Not at all –
my own I am I am required there is a
preferences required to to work at clear Employees Employers
and company be in the home / mismatch
guidelines are office more remotely
entirely than I would more than I
consistent like would like
Note: Percentages may not total 100 due to rounding Please note all values in the charts denote the percentage of respondents
Source: Source:
CBRE Research, 2022 CBRE Research, 2022
2022 India Office Occupier Survey 2022 India Office Occupier Survey

1.3
WORK Salary is the most important job Figure 1.3: Primary factors in assessing future job opportunities
selection factor; trust in the
management of the company is also 72%
key for new jobs 64%
61%
59%
• Compensation remained the overriding factor in job selection; more than 60% 57% 57% 57% 57%
of both sets of future employees (office and hybrid) across generations 52%53%
indicated this preference. This is in line with the results of CBRE’s Millennial 47%
Survey conducted in 2016 wherein 75% of the respondents had chosen 43%
compensation as the top priority while considering a job.
36%
• The second priority has seen a rejig compared to the Millennial Survey as L&D 33%
and training has moved from the second to the fourth position. However,
hybrid workers continued to place more importance on this factor, possibly
due to limited opportunities for face-to-face interactions with colleagues.
• As we increasingly move to a “phygital” world with limited physical
interactions, trust in the management of the company has emerged as an
important factor for both sets of future employees (office and hybrid*).
• With employees accustomed to the comfort of remote working during the
Salary, Trust in the Workplace with Learning, Company Flexibility around Flexibility over
pandemic, there is significant focus on the amenities that companies offer in compensation, management of good services development, commitment to where I am when I am
order to bring employees back to offices. The same was reiterated by the and HR benefits the company and amenities and career healthy work-life allowed to work allowed to work
that provide progression balance (home, office, (hours, days)
survey as more than 50% of both sets of workers (office and hybrid) placed value to me in opportunities other)
importance on workplace services and amenities. the office
• Hybrid workers placed a higher importance on when and where they can work Office employees Hybrid employees
while considering a new job.
Note: %=Top three choices of importance Please note all values in the charts denote the
*Hybrid excludes both ‘fully office’ and ‘fully remote’ categories percentage of respondents

1.4
WORK Office and hybrid workers Figure 1.4: Statements on work-related aspects post the pandemic
indicate improvement in Productivity Wellbeing

personal productivity, wellbeing, 80%78%
74% 77%
82% 68% 69% 66% 70%
connectedness and attachment to 69%

57%60%60%
53%
the employer post the pandemic 47%
• Productivity: Compared to the pre-pandemic years, office and

hybrid workers mostly reported improvement in both individual and
team productivities. However, remote workers found relatively
marginal improvement in their team over individual productivity.
This could be on account of a combination of factors such as My personal productivity My team's productivity I want to reduce the My level of job satisfaction has increased The stress I feel while working has
has improved has improved overall amount of time I increased
increase in virtual connects, online team collaboration initiatives and spend working
overall digital transformation of operations. Office employees Hybrid employees Remote employees
Office employees Hybrid employees Remote employees
• Wellbeing: Most of the three types of workers - office, hybrid and
remote - reported an increased level of job satisfaction post the Connectedness Attachment to employer
pandemic. However, office and hybrid workers felt relatively less
stressed than remote workers. This reiterates the importance of in- 83% 75% 79%78%
76% 71% 74% 69% 68% 69%
person interactions in workplaces. 68%69% 64% 62% 64%
59%
55% 52%49%
• Connectedness: Office workers felt the highest levels of 48% 51%
connectedness with their own and other teams and also reported
improved relationships with their colleagues
• Attachment to the employer: Hybrid workers reported a
strengthening in their level of trust with their employer post the My relationship with I feel connected to the I feel connected to the The trust I ha ve in my I want to change my I pay more at tention I am more lik ely t o
pandemic. Remote workers reported relatively higher willingness to colleagues has improved work of my immediate work of other teams curre nt em ploy er ha s ca reer pat ter n (part - to t he va lues and leave m y c ur rent job if
team str engthened time or por tfolio et hics of my employe r I beca me dissat isfied
change to part-time or portfolio work and a greater inclination to work ing et c.) with my work sit ua tion
leave if the current job conditions became less favourable. Office employees Hybrid employees Remote employees Office employees Hybrid employees Remote employees
Please note all values in the charts denote the percentage of respondents

1.5
WORK Job functions, preference Figure 1.5: Top reasons for different work styles
for connectedness and I am more effective in the office 39%

personal concerns largely
influence work styles Reasons for
Prefer face to face contact with colleagues 35%
preferring I feel disconnected when working from home/remotely 28%

• Top three reasons for employees to visit office office-based
included more effectiveness in working, work Technology/workspace is not set up to support flexible work 26%
preference for in-person interactions and more
connectedness while working in office. My home working environment is not suitable 23%
• About 39% respondents preferred hybrid /
remote working patterns in India as their My role can be fulfilled without being in the office 39%
physical presence was not required for their
roles. This was also due to their personal Concerned about health risks 39%
responsibilities and the reluctance to commute.
Personal / family responsibilities at home make going
Reasons for to the office difficult 35%
• About 39% of the respondents cited health preferring
concerns as a reason to not visit office, mainly Reluctant to commute regularly
hybrid / 28%
delaying RTO – resulting in employers
introducing health & wellbeing programmes. remote work
Quality of office environment is poor 21%
Colleagues rarely in the office 19%
Source: CBRE Research, 2022 Job function Connectedness Work environment

Personal Commute

2
WORK Location

2.1
WORK High employee satisfaction Figure 2.1: Overall satisfaction with office attributes
facilitated by overall work

environment across locations 82% 83%
79%
83%
77%
80% 79%
76% 75% 75% 75% 75% 76%
73% 74%
• Across all locations employees reported high levels of 69%
satisfaction in terms of quality of work environment, office
amenities, accessibility and employee programmes. It is to be
noted that in India, large scale office operations are generally
undertaken in emerging districts or suburbs while front office
operations are mainly located in city centres / established
districts with a few exceptions.
• Post the pandemic, developers and occupiers in order to
boost occupancies have strived to improve both building and
office amenities, while also in certain cases partnering with
local authorities to build infrastructure facilities.
Overall quality of work Office amenities Transport and accessibility Employee facilities & programs
environment
Office in city centre Office in established districts
Office in emerging districts Office in suburbs

2.2
WORK Employees Figure 2.2: Gap between actual and preferred commute times
prefer reduced Average time difference
commute time ( in minutes)
3.8 9.6 11.5 11.0 7.7 11.6 4.0 6.8
• Nearly three-fourths of the 42

respondents preferred a one-way 39
Global APAC
travel time of not more than 30
minutes, but only half of the 6.3 7.3 32
35 35
32
respondents currently have such a 31
commute. This is a clear departure 29 29
from the 2016 millennial survey India Hong Kong SAR 27 27
25 25 25
wherein 73% of the respondents
were willing to travel beyond 45
5.6 9.2 22
24
minutes to reach their place of work.

Australia Japan
• The average gap between actual
and preferred commute time was the 4.8 6.5
shortest for those living as well as
working in the city centres (3.8
minutes). Korea Mainland China
• The overall average gap is lesser in 9.5 5.5

India (5.6 minutes) as compared to
City centre to city City centre to City centre to City centre to Suburb to city Suburb to Suburb to Suburb to
APAC (7.3 minutes) and global (6.3 Singapore centre established emerging suburbs centre established emerging suburbs
minutes). This could be because
employees in India consider 11.4 business districts business districts business districts business districts
Current commute time

commute time to office as a key Source: CBRE Research, 2022
Preferred commute time
criteria while choosing their jobs / Note: These results are limited to those respondents who chose to answer this
*all the above values denote Time difference
question and may differ from individual employees on a case-by-case basis
residences. time difference in minutes

3
WORK Quality of office

3.1
WORK More emphasis on Figure 3.1 (a): Desirable factors for more frequent office visits
workplace ‘health &

wellness’ post the
pandemic 80%
76% 76% 75%
• Health & wellness was the most important factor 69%
drawing people to the office, followed by
technology, space design, location and services
& amenities (refer figure 3.1 (a))
Health & Wellness Technology Space Design Location Services & Amenities
Note: %=Top three choices of importance


3.1
WORK Figure 3.1 (b): Workplace features that can encourage more regular office attendance among employees
• More than 80% of the overall respondents mentioned
better COVID-19 safety measures and environmental Better quality workplace in terms of design and aesthetic 80%
features in workplaces as the most desirable factors
encouraging them to visit the office more frequently. Greater variety of working environments within the office 79%
This is aligned with corporates’ desire to occupy ESG- Availability of focus space for concentrated work 79%
friendly buildings.
Availability of car parking 75%
• Overall office location, quality of workplace, improved
Physical
technology and variety of working environments in Availability of social space 72%
office were the most important factors for 84% of My own private office 68%
office-based employees.
Free food and beverage options 67%
• A comparison of these findings with CBRE’s India Office
Better COVID-19 safety measures 82%
Occupier Survey 2022 revealed that both employees
and employers prefer more sophisticated buildings and Environmental features (natural daylight, better air quality, acoustics, etc.) 81%
workplaces that are ‘futureproofed’ via a combination
More wellness / relaxation opportunities 76%
of leading-edge physical, human and digital elements
(refer figures 3.1 (b) and 3.1 (c)). Occasional social / entertainment events 74%
Human On-boarding / orientation programs 73%
Daycare facilities 64%
Hotel accommodation or living space within the office building 59%

Improved technology in the office
(Contact less entry system, Personalized lighting system, Visitor management system etc.) 80%
Digital Easy means of understanding when my collogues and partners will be there 77%
Workplace experience apps (booking desks and receiving notifications from the company) 72%


3.1
WORK Figure 3.1 (c): Most sought-after building attributes among occupiers as per CBRE India Office Occupier Survey, 2022
~80%
Flexible / reconfigurable open space 74%
Shared meeting space 59%
Physical Flexible spaces such as coworking 56%

mentioned that a combination
Space for private phone calls / web meetings
of physical (workplace quality, 47%
focus space), human (safety Access to public transport 41%
measures, environmental Sustainable building features & operations 68%

features) and digital (improved Indoor air quality 62%
technology) features were key On-site café / F&B 47%
encouraging factors for them Human Fitness facilities 44%
to be more regular at office, a
Outdoor amenities 35%
fact corroborated by our
Concierge services 26%
India Office Occupier
Survey 2022. Connected technologies / building apps 56%
Touchless technologies 53%

Digital
Digitally enabled building operation systems 53%
Digitally enabled tenant experience applications 44%
Source: CBRE India Office Occupier Survey, 2022


4
WORK
The Gender
Perspective

4.1
WORK Preferred working Figure 4.1 (a): Preferred split between office and Figure 4.1 (b): Primary factors in assessing future job opportunities
model remote working – male vs female employees – male vs female employees
About two-thirds of the respondents, across

both genders, prefer to work at least three
days from office. However, a slight variation 56% 57%
in trend is visible as female employees place
a greater emphasis on flexibility (refer figure 49%
47%
4.1 (b)) when evaluating potential job
opportunities, as they may have higher 70%
family commitments and strive for a better
work-life balance by preferring to work 66%
remotely.
Preference to
work at least three
days from office
Female employees
Flexibility around where I am Flexibility over when I am allowed
Male employees allowed to work (home, office, to work (hours, days)
other)
Male employees Female employees
Source: CBRE Research, 2022 Source: CBRE Research, 2022


4.2
WORK Alignment with Figure 4.2 (a): Alignment with work guidelines – Figure 4.2 (b): Statements on work-related aspects post the
employers’ work male vs female employees pandemic – male vs female employees
guidelines
3% Male
More than half of both genders are fully
11% employees 58%
aligned with their employers' current work
5% 54%
guidelines. However, the slightly higher 8%
alignment displayed by female employees
46%
may be due to a heightened focus on 44%
diversity and inclusion by corporates,
which have implemented HR policies
Female
tailored to their needs in recent years.
27% employees
Additionally, most leading corporates are 55%
offering a wider range of amenities for 31% 60%
female employees, such as day-care
facilities, nap rooms, fitness centers and
beauty salons, further demonstrating their
commitment towards promoting a more
inclusive workplace culture.
Due to the higher need for flexibility
I want to change my career pattern I am more likely to leav e my current
amongst female employees, they are more Partially aligned- Partially aligned- (part-time or portfolio working etc.) job if I became dissatisfied with my
likely to pursue alternative career paths I’m required to be I’m required to work Not al all aligned- work situation
Fully in the office more remotely more than there is a clear
that offer a greater degree of workplace aligned than I would like I would like mismatch
flexibility. Male employees
Male employees Female employees
Female employees


5
WORK The Generation
Perspective

5.1
WORK Preferred working Figure 5.1: Preferred split between office and remote working – the generation difference
model
A relatively higher proportion of Gen Z and
early millennials prefer to work in office
The Generation Perspective:
minimum three days a week. This may be
due to the fact that Gen Z comprises
mostly of entry-level individuals who are Generation Age group 61%
new to office settings and therefore seek

exposure to the corporate environment. On Gen Z 18-25
the other hand, early millennials may be in
the process of transitioning from mid to 69%
67%
senior management positions, which often Late Millennials 26-33
Preference to 72%
necessitates a higher frequency of office
visits to ensure a smooth transition. work at least
74%
three days from
Early Millennials 34-41
office
Gen Z
Gen X 42-57
Late Millennials
Early Millennials
Baby boomers 58+ Gen X

Baby boomers


5.2
WORK Alignment with Figure 5.2: Alignment with work guidelines – the generation difference
employers’ work
guidelines
About 60% of the Gen X, millennials and The Generation Perspective:
57%
baby boomers feel that their employers'
work policies are fully aligned with their Generation Age group
personal preferences as compared to 61%
60%
only 45% of Gen Z indicating a complete Gen Z 18-25 58%
alignment. 45%
Late Millennials 26-33

Fully aligned
with employers’
Early Millennials 34-41
work guidelines
Gen Z
Gen X 42-57
Late Millennials
Early Millennials
Baby boomers 58+ Gen X

Baby boomers

Note - Fully aligned indicates employee preferences and company guidelines are entirely consistent

5.3
WORK Primary factors in Figure 5.3 (b): Primary factors in assessing future job Figure 5.3 (b): Employee satisfaction levels across
assessing future job opportunities – the generation difference generations
opportunities
60% 60% 90%
L&D is relatively more important for most generations, except
84%
baby boomers. This reflects the need for additional training and 55% 56% 81% 81% 83%
77% 78%
support for the younger generations, who have primarily worked 49% 49% 74%
47% 71%
remotely since the onset of the pandemic. It is possible that Gen X 45%
69%
may also require training to adjust to their new mid/senior 41%
management roles.
The higher emphasis placed on quality social infrastructure by
younger generations highlights their preference for a 28%
collaborative work environment and proximity to leisure amenities
such as malls, restaurants and F&B outlets.
In terms of employee satisfaction across generations, baby
boomers are the most content, largely due to a difference in
reference points – their exposure to world-class office spaces and
an open culture is fairly recent. On the other hand, Gen Z has been
exposed to these spaces pretty early in their careers and hence
they expect more in terms of workplace amenities, employee Learning, development, and Quality of social, leisure, Office amenities Employee facilities &
career progression cultural opportunities in area programs
facilities and programs. (refer figure 5.3 (b)). opportunities surrounding the office
This expectation level has only been accentuated by co-working
spaces, that provide world-class office spaces and amenities to Gen Z Late Millennials Gen Z Late Millennials
much smaller firms/start-ups, something which may have been Early Millennials Gen X Early Millennials Gen X
Baby boomers Baby boomers
only possible for top tier, leading companies (with significant
investment levels in office spaces) a couple of years ago.

5.4
WORK Statements on work-related Figure 5.4: Statements on work-related aspects post the pandemic – the generation difference
aspects post the pandemic
Baby boomers sense relatively higher improvement in both
personal and team productivities post the pandemic, leading to 83%
lower stress levels for this generation. This has resulted in baby 79%
76%
boomers displaying better trust in the management and lesser 73%
likelihood of changing career patterns. 67%
The lower personal productivity and elevated levels of stress 60% 59% 60%
observed among the younger generations, particularly Gen Z, may 54% 54% 54%
56%
be attributed to the requirement for more in-person training and 51% 52% 52% 51%
48%
collaboration with colleagues. This in turn may cause a sense of
instability and increased likelihood of career changes.
36%
In terms of job satisfaction, millennials as a group are most likely
31% 31%
to leave their jobs in case of dissatisfaction. This age group tends
to be critical from an organization standpoint as they would
generally transition to mid/senior management roles and may
have already entailed significant investments in terms of L&D and
trainings. Hence, it is imperative that the senior management and
HR teams pay importance to the interests of this age group while
formulating policies.
My personal productivity has The stress I feel while working ha s I want to change my career I am more likely to leav e my
improved increased pattern (part-time or portfolio current job if I became dissatisfied
working etc.) with my work situation
Gen Z Late Millennials Early Millennials Gen X Baby boomers


5.5
WORK Commute time across Figure 5.5: Employees with short commute time (<30 minute) – the generation difference
generations Current Preferred
Nearly 67% of Gen Z has a shorter commute time Gen Z 67 69
(<30 mins) compared to about 50% of millennials
and Gen X; however, the share dropped to 40% for
baby boomers. This is due to the fact that almost Late Millennials 53 72
40% of Gen Z in India prefers to rent (refer to the
LIVE section). These rental accommodations are
closer to their workplace, whereas baby boomers, Early Millennials 53 70
who are more economically stable, tend to live in
well-established residential areas that may be
further away from their place of work. However, it Gen X 50 70
is to be noted that almost 70% of employees
across generations preferred a commute time of
less than 30 minutes. Baby boomers 40 71

67%
of Gen Z has a shorter commute time, which can
explain their preference for rental accommodation
as they wish to stay closer to their workplace

6
WORK Recommendations
for occupiers,
developers and
investors

6.1
WORK Occupiers
• Prepare to accommodate flexibility: A majority of respondents intend to
work in a hybrid setup in future as they strive for greater flexibility. CBRE
believes that companies should prepare for a bespoke policy that strikes a
balance between office and hybrid working.
• Prioritize accessibility and wellness: Occupiers should give greater priority

to buildings with proximity to public transport and adequate parking
facilities. As ‘health & wellness’ in workplace is a key factor driving
employees to offices, companies should focus on ESG-compliant buildings as
well as ensure natural daylight, better air quality and acoustics in workplaces.
• Invest in upgrading offices to improve employee experience: Occupiers

are advised to assess the appeal of their office locations and make necessary
adjustments to satisfy the needs of hybrid and younger workers. Also, as part
of talent retention and recruitment initiatives, companies should improve the
quality of work environment through better workplace designs, technologies,
services and amenities.

6.2
WORK Developers / investors
• Future proof buildings: The emphasis on amenitized workplaces would
continue to drive flight to quality leasing in the coming years. To ensure a
competitive edge, developers and investors are recommended to facilitate
features such as reconfigurable open spaces, flexible workspaces,
customised building amenities and connected technologies / building apps.
CBRE also believes there is scope for greater cost and risk sharing between
developers and occupiers in the design, development and management of
office buildings.
• Ensure accessibility: Developers should explore opportunities to build closer

to transit stations or enhance connectivity services to facilitate easy
accessibility to tenants.
• Focus on sustainability: As occupiers continue to prioritize employee health

& wellness and their sustainability goals, developers should focus on energy
efficiency, resource management & waste reduction, incorporating renewable
energy and conducting regular audits for better property management.

03
Shop
1
SHOP Shopping
Habits

1.1
SHOP As boundaries between offline and online Figure 1.1: Shopping pattern of Indian consumers
retail blur further, savvy Indian shoppers 2% 1% 1% 1% 4% 4%
leverage both e-commerce and in-store
experience
38% 39%
42% 46%
Omnichannel is omnipresent 44%
48%
Easy access to internet and growing number of internet subscribers have led to a
tremendous advancement in online retail over the past few years, with the growth
accelerating further during the pandemic. From 2015-2019, gross merchandising
value of online retail grew at an average CAGR of 25%, while an average CAGR
growth of 38% was recorded from 2019-2021.1 However, as the cities started to
reopen after the pandemic, many shoppers went back to physical retail and since
then have adopted ‘hybrid commerce’ – offline + online. According to a survey of
more than 1,000 Indian shoppers conducted by Criteo, nearly 45% respondents 56% 56%
52%
50% 49% 42%
agreed to browsing products online but purchasing them in a store and also making
purchases online after seeing a product at a store.2 CBRE survey respondents have
also indicated strong preference for offline + online as more than 90% of
respondents stated that they shop across multiple channels.
The survey profile not only covers respondents across all generations but also 4% 5% 4% 6%
3% 4%
geographies - in addition to respondents residing in central, secondary, tertiary and India Gen Z Late Millennials Early Millennials Gen X Baby boomers
suburban areas of main cities, a small portion of them also represent small towns and
rural locations.
Pure Online Mainly Online Mainly Offline Pure Offline

1 Ground Zero 6.0, The Golden Age of India Internet, Redseer Strategy Consulting, Feb 2022 Source: CBRE Research, 2022.
2 Shopper Story 2022: Consumer Trends and the Future of Commerce, Criteo, January 2022

1.1
SHOP Online shopping habits vary across Figure 1.2: Shopping preferences across categories
categories
• After the COVID-19 pandemic, the retail sector
Luxury / jewellery
witnessed a sharper than anticipated recovery
trajectory, which can be attributed to pent-up
demand among consumers who had been DIY (Do-It-Yourself) A DIY shop is one that
forced into isolation for almost two years. sells tools, paint, and other equipment
needed for home improvements
• The Indian urban diaspora has been quick to
adopt online shopping, especially in gifts, Homeware / home decorations and
cosmetics, clothing & footwear and electronics furnishings etc.
segments. A significant portion of shoppers
have also started to explore online channels Children's clothing & footwear
for essential items (grocery & toiletries) and
children’s clothing & footwear.
Essential items (grocery & toiletries)
• For gifts, cosmetics, clothing & footwear along
with essential items (grocery & toiletries), 60- Specialist / hobby items
65% of city centre residents preferred to shop
online. Although more than 55% of small town
residents preferred online shopping for gifts, Electronics
clothing & footwear and electronics, only 31%

of them preferred to shop online for essential Clothing & footwear
items (grocery & toiletries).
• Millennials have shown flair for online Cosmetics
shopping across clothing & footwear,
electronics, cosmetics, gifts and essential
Gifts
items. In fact, more than 70% of late millennials
preferred to buy their clothing & footwear and
cosmetics online.

1.1
SHOP Figure 1.3: Shopping preferences across generations
100
90
80
70
60
50
40
30
20
10
0
Early Millennials
Early Millennials
Early Millennials
Early Millennials
Early Millennials
Early Millennials
Early Millennials
Early Millennials
Early Millennials
Early Millennials
Baby boomers
Baby boomers
Baby boomers
Baby boomers
Baby boomers
Baby boomers
Baby boomers
Baby boomers
Baby boomers
Baby boomers
Gen Z
Gen Z
Gen Z
Gen Z
Gen Z
Gen Z
Gen Z
Gen Z
Gen Z
Gen Z
Gen X
Gen X
Gen X
Gen X
Gen X
Gen X
Gen X
Gen X
Gen X
Gen X
Late Millennials
Late Millennials
Late Millennials
Late Millennials
Late Millennials
Late Millennials
Late Millennials
Late Millennials
Late Millennials
Late Millennials
Footwear
Clothing & footwear Children's
Children'sClothing
clothing&& Homeware
Homeware//Homehome DIY (Do-It-Yourself) Electronics Cosmetics Luxury//jewellery
Luxury Jewelry Specialist // Hobby
Specialist hobby items Gifts Essential itemsitems
Essential (Grocery &
Footwear
footwear decorations
decorations and
and furnishings Toiletries)
(grocery & toiletries)
furnishings
etc . etc.
Source: CBRE Research, 2022. Online Offline I don't shop this product

1.1
SHOP Retail stores retain their relevance
• Added advantages of online shopping such as ease and convenience,
price comparisons and better choices in terms of stock were greatly
illustrated when consumers were forced to shop online during the
COVID-19 pandemic. However, physical stores remain relevant owing to
the layer of experience that they offer.
• In line with APAC and global trends, more than 65% of consumers
across all generations have shown a strong preference for shopping in
brick-and-mortar stores for big ticket purchases such as luxury
products and jewellery, irrespective of their location (city centre /
suburbs / small towns, etc.). Consumers want to see such products in
store and may require sales staff assistance for making a purchase.
• A significant portion of shoppers in India especially those residing in
suburbs and small towns also prefer to buy homeware / home
decoration and furnishing products from stores. APAC and global
shoppers have also shown a higher preference for offline shopping in
this segment.
• Brick-and-mortar stores remain a prime retail channel for DIY (Do-It-
Yourself) and essential items (grocery & toiletries) at the APAC and
global level. Indian shoppers residing in cities and suburbs have
adopted an omnichannel approach, while small town and rural shoppers
~70%
of respondents stated
prefer physical store purchases across these two segments. that they preferred brick-
• Preference for offline shopping across some of these segments in small
and-mortar stores for
towns and rural areas can be attributed to the fact that some of these
areas may not be serviceable by certain online channels and shoppers big-ticket purchases
may also desire to examine / research some of these products before such as luxury products
making a purchase.
and jewellery

1.2
SHOP Reasons for in-store or online shopping
preference will continue to evolve with
the changing retail landscape
Product remains key for in-store shopping
• Consistent with APAC and global sentiments, preference for in-store shopping
among Indian consumers of all generations corresponded with their desire to try
on an item before buying. Examining the products remained the top reason
driving people to brick-and-mortar stores across most categories with the
exception of essential items where immediate availability of products took
priority. Ready availability of products across homeware / home decorations and
furnishings, etc., DIY, luxury / jewellery and cosmetics segments was rated as
the second most important reason by Indian shoppers.
• This was also in line with the CBRE 2016 Millennial Survey where more than 20%
of millennial shoppers demonstrated a strong preference for physical retail as
they were able to experience goods first hand and collect their purchases
simultaneously.
• Although online platforms hold extensive inventory, adoption of store-within-a-
store partnerships, flagship stores, customisation, presence of statement brands,
etc. have enabled select retailers to compete with online brands in terms of
variety. Consumers believe that they are also able to find better product
assortment in brick and mortar stores, especially when customisation /
56%
of respondents listed
personalisation takes precedence. The experiential element also becomes a product tangibility as the
differentiating factor during in-store shopping.
most important reason
• Support provided by a salesperson was the second most common reason in the
electronics segment as immersive and interactive product demonstration plays for their preference for
a key role in the decision-making process. shopping in stores.

1.2
SHOP
Figure 1.4: Reasons for preferring to purchase products offline
Homeware /
Reasons for preferred Children’s Essential items
Clothing & home decorations DIY (Do-It- Luxury/ Specialist/ hobby
in-store shopping clothing & Electronics Cosmetics Gifts (grocery &
footwear and furnishings Yourself) jewellery items
experience footwear toiletries)
etc.
I can see/ try the
63 62 57 53 57 57 64 47 50 45
product first
Products are
38 39 44 40 40 39 39 36 39 50
immediately available
More variety in-store 43 44 40 34 34 36 39 37 42 41
Help from salesperson/

more product 31 30 32 30 42 34 35 30 27 25
information
Overall in-store
experience 31 35 30 30 34 27 37 36 26 35
Easier price comparison 33 28 32 30 34 27 31 29 31 38
Better offers/
27 24 26 24 31 27 25 29 28 31
promotional deals
Products
Source: I want
CBRE are2022.
Research, only
22 20 27 26 23 26 25 27 23 27
available in-store

Low High

1.2
SHOP
Figure 1.5: India vs APAC vs Global – reasons for preferring in-store shopping
56%
60% I can see / try the product first
60%
41%
41% Products are immediately available
40%
39%
27% More variety in-store
24%
33%
28% Overall in-store experience
25%
32%
28% Help from salesperson / more product information
26%
31%
24% Easier price comparison
21%
27%
20% Better offers / promotional deals
19%
25%
15% Products I want are only available in-store
12%
Source: CBRE Research, 2022. INDIA
India APAC GLOBAL
Global

1.2
SHOP Wide range of options and better deals drive online sales
• India has added 80 million online shoppers in the last three years alone to reach 130
million in 20203 and the online retail market in India is projected to reach USD 350
billion by 2030 compared to an estimated USD 55 billion in 2021.4 In the last two years,
deeper penetration of fast internet, low-cost smartphones, adoption of digital
payments and pandemic-induced restrictions have led to a sharper growth in online
shopping.
• Similar to the APAC and global respondents, Indian shoppers have stated a wider
choice of products as the number one reason to shop online across most segments.
CBRE 2016 millennial survey was conducted when online shopping in India was at an
incipient stage, but even then, nearly 47% millennials had indicated that they were
planning to shop more online over the next three years (2016-2019). The primary
reason was convenience and a larger inventory of products.
• Social distancing and stay-at-home restrictions during the pandemic fuelled the
growth of e-commerce channels and led to the emergence of several new retail
categories (e-medicine), concepts (BOPIS, contactless checkouts, offline-to-online)
and delivery models (instant delivery, meal kit delivery).
• Presence of larger inventory has led to more competition among online brands,
causing them to introduce promotional offers and discounts to differentiate
themselves and encourage sales. The wider breadth of offers provided by e-commerce
channels was stated as the primary reason for online shopping in categories such as
electronics, luxury / jewellery and essential items.
>50%
Stated that variety in
• Owing to a plethora of e-commerce channels in India, shoppers can also take time to
research and easily compare price points across different channels which was
terms of inventory as well
highlighted as the third biggest reason for shopping online. Flexible payment modes, as offers and deals was
cash on delivery, reverse pick up of returns, EMIs across ticket sizes and free shipping
on minimal shopping value has resulted in e-commerce gaining acceptance faster.
what drove them towards
3 https://www.avendus.com/india/avendus-eye/direct-to-consumer-d2c-brands-the-next-wave-of-shopping-in-india
online shopping
4 India Brand Equity Foundation (IBEF), Nov 2022.

1.2
SHOP
Figure 1.6: Reasons for preferring to purchase products online
Homeware /
Reasons for preferred Children’s Essential items
Clothing & home DIY (Do-It- Specialist/
online shopping clothing & Electronics Cosmetics Luxury/ jewellery Gifts (grocery &
footwear decorations and Yourself) hobby items
experience footwear toiletries)
furnishings etc.
More variety online 60 64 57 52 54 54 50 54 60 48
Better offers /
57 52 50 46 60 52 51 47 49 55
promotional deals
Easier price comparison 45 43 45 36 51 45 47 39 43 45
More product
44 41 41 40 44 42 44 39 40 39
information online
I know the product and

27 25 27 29 27 36 25 30 27 42
no need to see / try
Products I want are only
33 32 32 31 30 29 33 34 32 28
available online
Concerns over COVID-19 29 34 31 30 26 29 30 30 30 38

Low High

1.2
SHOP
Figure 1.7: India vs APAC vs Global – reasons for preferring online shopping
56%
48% More variety online
46%
52%
46% Better offers / promotional deals
44%
44%
43% Easier price comparison
39%
41%
36% More product information online
31%
31%
23% Products I want are only available online
20%
30%
28% I know the product and no need to see / try
28%

INDIA
India APAC GLOBAL
Global

1.3
SHOP Re-imagining the offline + Figure 1.8: The next-gen store
online retail network amid Customer 360°
altering consumer behaviour As the endemic stage begins, many shoppers are feeling increasingly safe to venture out and explore offline formats.
This is evident from the rising footfalls across malls and high streets, with many retailers reporting pre-pandemic sales
E-tailing will continue, but store to remain the heart levels. Nearly 50% shoppers agreed that they would shop more in-store as the pandemic-induced restrictions have now
of business operations been lifted. Retailers are focusing on elevating the in-store experience to close the gap between the digital consumer
and the retailers’ ability to deliver as per their expectations.
More than 70% Indian shoppers agreed that they have
shopped more online since the COVID-19 pandemic and will
continue to do so going forward. On the other hand, Phygital Integration
consumption via offline channels will be driven directly by
More than 50% of the shoppers agreed that they would like to see the product before they place an online order. Brands
product and in-store experience. and retailers have recognized that the future of retail is a blend of brick-and-mortar stores and online platforms. Stores
are being retrofitted for a digital and technological transformation that would help shoppers in their decision making.
Buy online, pick-up in store (BOPIS)

Although BOPIS is yet to gain traction in India, more than 55% shoppers who work in office all the time prefer picking up
their orders in-store rather than getting them delivered. Office workers who are seldom home and do not have a drop off
facility at their residence find curbside order pickups and collection at parking lots or at a storefront more convenient.
Supply chain solutions

For the final ‘50 feet’, which remains one of the most expensive legs of the logistics process, physical stores will take on a
greater role and stores will make it easier for consumers to return goods, offer refunds and expand return locations. More
than 45% shoppers agreed that they would prefer returning online orders in-store, instead of by post.

1.3
SHOP Experiential retail to remain key Figure 1.9: Focus on offline in the past six months
• Online retail alone is not enough to satiate shopping needs –
an outing, an experience and leisure are critical factors
needed to balance the retail equation. Nearly 46%
respondents indicated that they were dining out more and I am spending more time on
almost 60% respondents agreed that they were spending 24 13 17 25 7 5 9
cultural activities
more time on leisure and cultural activities.
• This was also consistent with the findings of the CBRE 2016
Millennial Survey where nearly 50-60% millennials agreed to
dining out, shopping and hanging out at shopping centres
and attending live events more than 3 times in a month. I am spending more time on
26 16 18 24 6 4 7
leisure activities
I am dining out more 20 12 14 20 10 8 17
Strongly agree
Agree Somewhat agree
Agree Agree Neither agree nor disagree
Disagree Somewhat disagree
Disagree Strongly disagree
Disagree

2
SHOP Personal
Finance

2.1
SHOP Indian consumers remain Figure 2.1: Share of confidence on personal economic situation – region-wise
optimistic regarding personal
finance
Consumers likely to adopt a cautious shopping India 77% 15% 8%
behaviour despite general optimism
• Despite global headwinds and rationalisation in growth
projections for India, there has been encouraging news on
several fronts. Retail inflation (measured by Consumer price
Asia Pacific 53% 26% 22%
Index, or CPI) eased to a one-year low of 5.72% in December
2022. Although inflation inched up to 6.52% in January
20235, the near term outlook on inflation remains
constrained due to volatile food prices and sticky core
inflation6. However, the impact of any slowdown on retail Americas 49% 23% 28%
sales growth and private consumption is likely to be diluted
by an overlap with the festive season in H2 2023.
• Therefore, despite the global headwinds, Indian consumers
remain confident about their personal economic situation Europe 38% 24% 38%
compared to other developed economies. And while
household spending has held up so far, we do believe that
consumers are likely to remain watchful of the looming
recessionary pressures and its impact on commodity prices Confident Neutral Not Confident Source: CBRE Research, 2022.
going forward.
5 Ministry of Statistics and Program Implementation (MoSPI) Press Release, January 2023
6 Oxford Economics, January 2023

2.1
SHOP
• The oldest and youngest demographics amongst the Figure 2.2: Confidence on personal economic situation – generation-wise
respondents felt a little less optimistic about their
personal finances – which can be related to their limited
ability to find well-paying jobs and dependence on their 5.9 5.9
family for finances.
5.8
5.6 5.6
5.2
Total Gen Z Late Millennials Early Millennials Gen X Baby boomers

Note: Respondents were asked about their confidence level regarding their personal economic situation. The options given to them were, very confident; somewhat
confident; confident; neutral; not confident; somewhat not confident; and not at all confident. The above number for each bar indicates the mean of percentage share
of responses in these categories.

2.2
SHOP Cautious approach from Figure 2.3: Change in spending habits –where respondents are feeling optimistic about personal finances
consumers likely to impact I spend more on personal services like haircut, massages etc.
discretionary spending I dine out more

I travel the same amount, but to more expensive holiday
destinations
Uncertainty around personal economic situation likely to
I buy the same amount, but from more expensive brands
drive cutbacks in leisure activities and direct focus towards
familiar, cheaper brands I spend more on leisure activities like going on a holiday
• In a scenario where respondents are optimistic about their I buy more from the brands that I usually buy from
personal finances, they are likely to focus on non-discretionary
I spend more on my groceries
spending. Nearly 28% respondents have expressed that they
would spend more on their family and kids. With a share of 34%, I spend more on family and kids
this sentiment was more prominent among late millennials.
Source: CBRE Research, 2022. 0 5 10 15 20 25 30
• Gen X and baby boomers spent more on groceries, followed by
late millennials who have been focusing more on their health and
Figure 2.4: Change in spending habits –where respondents are feeling pessimistic about personal finances
well-being. On the other hand, discretionary spending on familiar
brands has continued among young shoppers (Gen Z and late I travel the same amount, but to less expensive holiday destinations
millennials). Younger respondents (Gen Z) also continued to dine
I spend less on personal services like haircut, massages etc.
out more.
I dine out less
• As the confidence of respondents in their personal finance wanes,
their priorities have changed significantly with the focus moving I buy less from the brands that I usually buy from
from experiences to taking care of basics and scouting for
I eat out the same amount, but use cheaper grocery options
discounts and cheaper alternatives for everyday use products.
I go away on fewer holidays
I spend less on leisure activities
I buy the same amount of products, but from more discount brands
Source: CBRE Research, 2022. 0 5 10 15 20

3
SHOP Sustainable
Consumerism

3.1
SHOP Consumer awareness on Figure 3.1: Awareness about environmental and social issues
sustainability / environment
issues picked up in the endemic All 58% 32% 8% 2%
stage
Baby boomers 50% 35% 12% 4%
• Consumers, especially millennials in India are keen to make
sustainability-focused choices and have demonstrated
awareness on environmental and social issues. Nearly 68%
early millennials and more than 60% late millennials and Gen X 55% 35% 9% 1%
Gen Z respondents have expressed that their awareness
regarding these issues has increased since the pandemic.
Early Millennials 68% 26% 4%1%
• However, the awareness and exposure to sustainable
brands and products varies across income categories and
locations. While in city centres and tier I locations the
awareness and ability to pay a premium for making Late Millennials 62% 31% 6% 1%
sustainable choices will be higher; the same is likely to be
much lower in tier II and tier III markets.
Gen Z 60% 30% 8% 2%
Yes, I feel a lot more aware than pre-pandemic Yes, to some extent
No, I was already aware of these issues pre-pandemic No, I am
amnot
notaware

3.2
SHOP Sustainable consumerism in Figure 3.2: Actions taken in past 6 months
India driven by a number of
factors I have chosen to buy environment-friendly products, even if they are
more expensive
70% 25% 5%
• More than 70% of survey respondents stated that they have

chosen to buy environment-friendly products despite the I have purchased more from locally sourced / produced products 70% 21% 9%
additional cost associated with it and the sentiment is stronger
among the older generation - early millennials, Gen X and baby I have chosen purchased more from smaller / independent brands 67% 23% 10%
boomers. This demographic includes mostly high income
earners residing in city centres and home owners with a
certain sense of security and they are thus in a position to I am trying to consume less 58% 29% 13%
make sustainable choices while buying any product.
I have stopped shopping at a particular brand because of their
• About 65-70% of respondents, especially late millennials 43% 38% 18%
environmental or societal stance
stated that have purchased more locally sourced products and
smaller / independent brands. Social media has played an I have shopped less frequently online because of environmental waste
41% 35% 23%
important role here as the young shoppers are captivated by from packaging
these brands through social media platforms where most of
these brands engage young audiences and broaden their I have brought second-hand products, instead of buying items from new 31% 29% 40%
reach through influencer marketing. Social media outreach has
enabled them to compete with not only big domestic brands
but also international ones. I have rented products, instead of purchasing 29% 30% 41%
• Shoppers have also indicated their attempt to reduce

consumption not only in a bid to be sustainable but also frugal. Yes, I have acted Not yet but I plan to do so I have not, and do not plan to take this action Source: CBRE Research, 2022.
High price points of certain products and a desire to have
varied options has led many of the young respondents to rent
instead of buy.

4
SHOP Recommendations

4.1
SHOP Occupiers
Invest in upgrading store layouts: In-store expectations have changed
drastically after the pandemic with heightened focus on customer
experience. Keeping in view the ever-changing consumer behaviour, CBRE
believes that retailers should adopt an agile design that continues mapping
a customer’s journey within a store and adjusts the visual merchandising
and store layout to emphasize high-interest categories.
Use technology as an enabler: Since technological advancements require
significant investment, retailers should assess technology needs specific to
their brand and its ROI (return on investment) as a first step towards
digitisation. Post evaluation, touchless experience, voice capabilities, virtual
reality and other features can be integrated into store design.
Optimise supply chain operations: Consumers increasingly expect to be
able to shop anywhere, anytime across multiple channels. CBRE
recommends that apart from investing in omnichannel capabilities, retailers
should also offer real-time inventory visibility, facilitate seamless returns /
pickups and transform in-store supply chains to be more adaptive and
resilient to customer needs.
Omnichannel retail can be a precursor to physical retail: It is important
that omnichannel retail be considered as complementary and not a threat to
physical retail. Retailers who have an online presence are able to convert
actionable insights from customer data such as age profiles, average ticket
size of purchase, type of products purchased, geospatial analysis of zip
codes, etc. This data can not only be leveraged to develop more targeted
online sales and marketing strategies but also create offline store expansion
strategies.

4.2
SHOP Developers / Investors
Focus on placemaking: As consumer behaviour is fluid in
nature, placemaking continues to remain relevant. It is thus
imperative for developers to adopt a layered, holistic approach
to create a compelling, competitive destination that
emotionally resonates with consumers. It not just about brands
or the right tenant-mix, but is about creating an authentic
environment that keeps diversification, convenience and
experience in mind.
Focus on sustainability: The survey has indicated heightened
environmental consciousness among several respondents;
thus, sustainability should remain one of the key themes for
developers going forward. CBRE believes that developers
should not only promote sustainable initiatives (recycling,
waste management, etc.) across their assets but also
reconfigure their tenant mix in favour of tenants with strong
environmental credentials.

Contacts
Live India Research Asia Pacific contacts
Vineet Sharma
Abhinav Joshi Henry Chin, PhD. Cynthia Chan
General Manager Head of Research, India, Middle East and Global Head of Investor Thought Leadership
[email protected] Director, Asia Pacific Research
North Africa Head of Research, Asia Pacific [email protected]
[email protected] [email protected]
Liz Hung
Work Vidhi Dheri Ada Choi, CFA Director, Asia Pacific Research
Pradeep Nair Head of North and West India Operations Head of Occupier Research, Asia Pacific [email protected]
[email protected] Head of Data Intelligence and Management,
Senior General Manager
Asia Pacific Tony Lai
[email protected]
Priya Verma [email protected]
Manager
Karthiga Ravindran Deputy General Manager [email protected]
[email protected] Jonathan Hills
Deputy General Manager Senior Director, Asia Pacific
Mohamed Atif Khan
Senior Manager
Shop [email protected]
Uttara Nilawar
Senior General Manager
[email protected]
© Copyright 2023. All rights reserved. This report has been prepared in good faith, based on CBRE’s current anecdotal and evidence based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this presentation, they are subject to
significant uncertainties and contingencies, many of which are beyond CBRE’s control. In addition, many of CBRE’s views are opinion and/or projections based on CBRE’s subjective analyses of current market circumstances. Other firms may have different opinions, projections and analyses, and
actual market conditions in the future may cause CBRE’s current views to later be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change.
Nothing in this report should be construed as an indicator of the future performance of CBRE’s securities or of the performance of any other company’s securities. You should not purchase or sell securities—of CBRE or any other company—based on the views herein. CBRE disclaims all liability for
securities purchased or sold based on information herein, and by viewing this report, you waive all claims against CBRE as well as against CBRE’s affiliates, officers, directors, employees, agents, advisers and representatives arising out of the accuracy, completeness, adequacy or your use of the
information herein.
Business Line Contacts
Advisory & Transactions Consulting & Valuation Global Workplace Solutions Project Management
Ram Chandnani Rami Kaushal Rajesh Pandit Gurjot Bhatia

Managing Director, Managing Director, Managing Director, Managing Director,
Advisory & Transaction Services, India Consulting & Valuations, India, Global Workplace Solutions, India & Project Management, India,
[email protected] Middle East & Africa Property Management, India, SE Asia, Middle East & Africa
[email protected] SE Asia, Middle East & North Africa [email protected]
[email protected]
Capital Markets Capital Markets Operations
Gaurav Kumar Nikhil Bhatia Rajat Gupta

Managing Director & Co-Head, Managing Director & Co-Head, Managing Director, Operations, India
Capital Markets, India Capital Markets, India [email protected]
© Copyright 2023. All rights reserved. This report has been prepared in good faith, based on CBRE’s current anecdotal and evidence based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this presentation, they are subject to
significant uncertainties and contingencies, many of which are beyond CBRE’s control. In addition, many of CBRE’s views are opinion and/or projections based on CBRE’s subjective analyses of current market circumstances. Other firms may have different opinions, projections and analyses, and
actual market conditions in the future may cause CBRE’s current views to later be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change.
Nothing in this report should be construed as an indicator of the future performance of CBRE’s securities or of the performance of any other company’s securities. You should not purchase or sell securities—of CBRE or any other company—based on the views herein. CBRE disclaims all liability for
securities purchased or sold based on information herein, and by viewing this report, you waive all claims against CBRE as well as against CBRE’s affiliates, officers, directors, employees, agents, advisers and representatives arising out of the accuracy, completeness, adequacy or your use of the
information herein.

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Adaptive Spaces

Voices from India:

Executive Live Work Shop

Summary Perception shift in ‘generation rent’

72% 80% 80%

2 CBRE RESEARCH © 2023 CBRE, INC.

The survey is designed to understand how Definitions

Insights from the survey will be used to inform

3 CBRE RESEARCH © 2023 CBRE, INC.

5 CBRE RESEARCH © 2023 CBRE, INC.

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centre preferred amongst

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For a space to accommodate remote working 26%

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1 RBI: Sectoral deployment of Bank credit – November 2022

Source: CBRE Research, 2022.

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millennial attitude towards

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~72% 25 PLAN TO RENT

% of respondents that plan to rent

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• While home ownership is considered as one Asia Pacific

Moved in the past two years

Source: CBRE Research, 2022.

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• There is also an increasing need for a dedicated office space at 75

category remains low. Source: CBRE Research, 2022.

India Asia Pacific

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Hybrid – remote first

Fully remote 4% 8% Remote working

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aligned with their

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indicate improvement in Productivity Wellbeing

connectedness and attachment to 69%

• Productivity: Compared to the pre-pandemic years, office and

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for connectedness and I am more effective in the office 39%

preferring I feel disconnected when working from home/remotely 28%

Colleagues rarely in the office 19%

Source: CBRE Research, 2022 Job function Connectedness Work environment

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facilitated by overall work

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• Nearly three-fourths of the 42

minutes to reach their place of work.

• The overall average gap is lesser in 9.5 5.5