Residential buildings with EV charging stations may see price rise of 2-5%: JLL

NEW DELHI: New residential buildings with installed electric vehicle charging stations may see price appreciation between 2- 5%, according to JLL. According to JLL, the EV industry will grow at a CAGR of upwards of 40% 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, according to JLL, all new residential planned developments will have at
least 5% of parking lots reserved for common charging facility. “There will be a premium of at least 1% 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. In 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,” said A Shankar, head (Strategic Consulting and Valuation
Advisory), India, JLL.

In office markets, the landowners will create this facility with a user fee or lease the land to charging service provider or earn through regular revenue share model, however, the challenge being the non-availability of vacant parking lots.
JLL estimates that this is to create a huge demand for the space and location, trigger more real estate asset classes and ultimately command premium over spaces which do not provide such facilities.