Future of Commercial Real Estate in India

Future of Commercial Real Estate in India

When it comes to investments Indians have traditionally preferred gold and real estate. However, real estate till now was limited to residential peripherals. Changing times have, however, changed the equation. Commercial real estate is now finding favour with the masses which makes its future bright in the country. Let’s find out a few compelling reasons that work in favour of commercial real estate in India.

Real Estate Investment Trust (REIT)

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REITs, acknowledged as investment instruments across the world, just about a couple of years ago. The idea of monetizing rent-rich commercial assets won over many in the real estate sector. Successful establishment and operations of some REITs further strengthened the value of the commercial real estate and attracted investors who found the idea too tempting to resist.

REITs offer fabulous financial options for investors and developers. It can explore the true worth of real estate assets. With a very promising capitalization growth, REIT can come in very handy in assisting builders in setting their liabilities.

Receding COVID Cases

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The global pandemic had a crippling effect on many sectors around the globe and real estate was no different. It witnessed nationwide lockdown which led to the closing down of offices and markets which hampered the demand for commercial real estate. However, with the situation fast returning to normal and the government relaxing the restrictions the charm is back in the sector as workplaces continue to open steadily reviving the office leasing activities.

Recovery in Tier-I Cities

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Tier-I cities, which also form the bulwark of the country’s real estate activity, are fast returning to normal. However, smaller towns and tier-II cities are also expected to power the sector’s recovery and development in future. Work-from-home culture, which the country has adopted, is the reason behind this projection.

Growing Demand for Co-Working Spaces

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One of the biggest gains of the pandemic is that it has made distance irrelevant as companies adapted work from home culture and gave their staff the liberty to work from home. JLL report has suggested that by 2023 India’s co-working market would cross 50 million sq. ft. It is also believed that adaptable office space is going to increase further in the coming 3 to 4 years which strengthens the case for commercial real estate in India.

Trust SMC Real Estate Advisors to help you fetch top real estate deals from the most reputed developers in the country at the most competitive rates.


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