How real estate players are riding the electric vehicle opportunity Leave a Comment / Electrical / By admin Similarly, a decade ago, no one believed that a vehicle would run on anything that was not fuel. But in the past few years, we have witnessed that vehicles running on electricity outperform those that run on fuel. The Indian electric vehicle (EV) market is developing rapidly. By 2030 India is expected to be the third-largest EV industry in the world. You read that right. There’s a good possibility that every running car or 2-wheeler will be electric. We say this because the urban population is actively moving toward EVs. In 2021, approximately 0.3 million electric vehicles were sold. The sales were 168% higher year on year. Government initiatives like the FAME scheme, PLI-ACC scheme, the battery swapping scheme, and others have boosted the Indian EV industry. A major concern around EVs is the high cost. The starting range for petrol cars is ₹2.5 lakh in India, whereas the most affordable EV starts from around ₹10 lakh. However, it seems that it will change soon. On 22 March 2022, India’s transport minister Nitin Gadkari said, “Rapid strides in technology and green fuel will help bring down costs at par with petrol automobiles in the country.” This will change the game for EVs. This is in line government’s goal of net zero carbon emission by 2070. Thus, the EV revolution will bring several opportunities to the automobile sector that’s for sure. But automobile isn’t the only sector that will be benefitted from this. EV will also benefit the real estate sector. Read on to find out how will EVs impact the real estate sector. The EV impact on real estate sector Developments in EVs will create multiple opportunities for the real estate sector. This is because the development of EVs will create a demand for space. Real estate players have opportunities of building EV manufacturing units, warehousing, EV charging infrastructures, and industrial zones for EVs. According to a report from Colliers, a global property consultant, about 13.5 m sq ft of space will be required by 2025 for EV charging stations. India needs at least 26,800 public charging spots, which is a huge development opportunity. The demand for EV charging-enabled parking spaces is increasing. EV charging stations will have to be developed not only for residential plans but for commercial projects too and also for hospitality. There is also ample scope for developers to develop retail and recreation spaces in proximity to the charging stations, the Colliers report added. In February 2019, The Ministry of Housing and Urban Affairs (MoHUA) amended its Model Building by-laws and suggested at least 20% of the parking space should have EV charging infrastructure. Additionally, MoHUA also suggested that the buildings should increase power load to meet the needs of additional power requirements for charging stations. State governments like Maharashtra are giving property tax breaks for housing co-operative societies. This opportunity will increase the cost of real estate properties. This is because all developments come with the cost of investments. Hence, with an increase in facilities, the costs will also increase. Thus, it can be seen that the development of the EV industry has created a burgeoning need for infrastructure. The real estate sector will receive a major push. Some companies have started gearing up to make the most of this opportunity. How real estate companies are making the most of the opportunity? Real estate companies are acting proactive and have started building EV charging-enabled parking spaces. Kalpataru, a Mumbai-based construction company, offers EV charging-enabled parking in all its new projects. Mantra Properties is also offering EV charging-enabled parking since April 2021 to its commercial and residential buyers. However, it’s important to mention that only including charging spaces is not enough. Real estate players will have to connect with the providers of EV charging infrastructure to provide the facility. EV charging station makers have seen a rise in demand from realtors. EV charging station makers are entering into partnerships with builders to build charging stations, and also build stations for buildings and colonies. EVs and Tata Power When we talk about EV charging station makers, it’s impossible not to mention Tata Power. For EV infrastructure in India, Tata Power is to EVs, what Samsung was to Android. The biggest manufacturer of EV charging stations is Tata Power. It was the first company to set up an EV charging station and it has already installed more stations than 15,000 EV charging station. Tata Power aims to complete the task of setting up nationwide EV charging stations over the next three to five years. This will be a game-changer for Tata Power if the plans turn into successful actions. Real estate companies like Rustomjee group, Lodha Developers, Kolte Patil, among others have already tied up with Tata Power. The ripple effect We all know that necessity is the mother of invention. But we do not truly look at the manifestations of the invention. Whenever an invention takes place, a ripple effect happens. The change starts from the industry that needs change and spreads to various other industries. The effect can be small or industry-altering. The need for an alternatives to crude oil gave birth to the invention of EVs. Ever since the birth of EVs, so many industries have been facing the change. We just saw how the real estate sector sees several opportunities because of EVs. Likewise, many other industries like the EV software developers, auto manufacturers, battery manufacturers, etc. all stand under the roof of a great revolution. Hence, EVs are bringing a change in so many industries. The change is big! It is good! But will it be profitable? Happy Investing! Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from Equitymaster.com Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates. More Less Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter. First article .