New Buildings with EV charging to Cost 2-5% More
A study says prices of new residential buildings with charging stations for Electric Vehicles may appreciate by up to 5%.
Electric Vehicles or EV are no longer a distant dream for automobile owners in India. Greater awareness about the impacts of climate change, the aspiration or novelty of owning an EV, and the government’s policy and infrastructure support for the speedy rollout of EV will affect a multitude of sectors, from transportation to real estate.
In line with the growing adoption of electric vehicles new residential developments that install EV charging stations are expected to appreciate by 2-5% while the price of existing buildings that install such facilities are expected to appreciate by 1%.
The study conducted by JLL India expects installation of EV charging stations in existing buildings will rise immensely by 2026. On the other hand, all new residential planned developments will have at least 5 % of parking capacity reserved for common charging facilities.
Depending on the type of building, the retrofitting of EV charging installation in existing buildings is expected to create a major impact on residential housing and help in better utilisation of real estate.
Developers are installing charging stations in residential areas with help from service providers. In large residential developments, residential associations who have already installed these facilities are earning from users on a fixed-free model.
A Shankar, Head of Strategic Consulting and Valuation Advisory for India at JLL, said, “There will be a premium of at least 1 percent for spaces in existing buildings with 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. Charging stations are IoT devices, so internet availability and connectivity should also be provided.”
He added, “In the short term, in places where there is high demand or more than 60% of the residents own EVs, this premium can go up to 2-5%, 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 sustainable way of living which will lead to economies of scale for the developers in long run.”
The study expects EV industry in India to grow at a CAGR of 40% given government support and adoption.
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