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Mumbai

Updated on: Saturday, October 30, 2021, 02:31 AM IST

Mumbai: New bldgs with EV charging stations may be costlier, says JLL

The property advisor expects the price appreciation to be in the range of 2 - 5 per cent
Representative pic

Representative pic

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The prices of new residential buildings with EV charging stations is expected to rise between 2 per cent to 5 per cent, while the price of regular existing buildings may rise upwards of 1 per cent, according to a recent report by JLL.

The report states that the EV industry will grow at a CAGR of upwards of 40 per cent by 2030 given the government policies and massive EV adoption rate. This will surge the demand for EV charging stations in buildings, thereby driving the need for such spaces. It is expected that the installation of EV charging stations in existing buildings will go up drastically by 2026. Depending on the type of buildings, these retrofit projects will have a major impact on the pricing of residential asset class and it will also help in the efficient utilisation of real estate. Currently, the owners are installing stations with the support of service providers in residential areas.

In many other large-scale developments, associations have installed these facilities and in turn earning from the users on a fixed fee model. According to JLL, going forward all new residential planned developments will have at least 5 per cent of parking lots reserved for common charging facility.

Head – Strategic Consulting and Valuation Advisory, JLL India, A Shankar said that there will be a premium of at least 1 per cent for spaces in existing buildings with the retrofit of charging points given the challenges pertaining to high installation costs of charging units for large residential complexes/multi-storey buildings and limited power supply capacity.

“In places where there is high demand or more than 60 per cent of the residents own EVs, this premium can go up to 2 per cent - 5 per cent, especially in new green residential complexes. This surge of EVs in India is due to increased demand, government incentives and the considerable population moving towards a sustainable way of living which will lead to economies of scale for the developers in long run," Shankar added.

Metro stations and malls parking lots are also being promoted to tap this demand. Many petrol stations are also added with these facilities. Either the public authority develops the charging infrastructure and lease it to the operator or lease the land to the service provider for the long term. This will create a huge demand for the space and location, trigger more real estate asset classes and ultimately command a premium over spaces that do not provide such facilities, the report further stated.

Moreover, government-led initiatives are playing a pivotal role in improving the entire EV ecosystem. As the world is shifting towards sustainable and renewable forms of energy in all walks of life, EVs are considered the future of the automobile industry. With added incentives and policy support from the government, the demand for EVs will be only go up.

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Published on: Saturday, October 30, 2021, 02:31 AM IST
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