Buildings with EV charging stations to see 5% price hike

Hyderabad: The real estate for residential asset class with installing electric vehicle (EV) charging stations is expected to see 2-5 per cent price appreciation in newly constructed buildings and upwards of 1 per cent in regular existing buildings, says JLL report.

According to JLL, 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 installation of EV charging stations in existing buildings will go up drastically by 2026. Depending on type of buildings, these retrofit projects will have a major impact on pricing of residential asset class and will also help in efficient utilisation of real estate. Currently, the owners are installing stations with the support from service providers in residential areas.

In many other large-scale developments, association has taken up the activity, installed these facilities, in turn earning from the users on a fixed fee model. However, going forward all new residential planned developments will have at least 5 per cent of parking lots reserved for common charging facility. There will be a premium of at least 1 per cent 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.

"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," said A Shankar, Head – Strategic Consulting and Valuation Advisory, India, JLL.