COMMERCIAL REAL ESTATE – MAGNET FOR INVESTORS

The commercial real estate segment includes offices, retail, hospitality, warehouses, logistics and industrial parks/units. All of them have a different flavor in itself, for investors. The demand from segements like manufacturing, E-Commerce, BPOs, KPOs, electronics, auto and allied industries, ITeS is gaining momentum under various supporting incentives of Government of India. Various policy reforms like RERA, GST etc has ultimately worked in favor and have bolstered the demand of commercial real estate in India.   Because of this, the commercial market is expected to grow at 14% during 2022-2027.  In the world of real estate, this can be termed as a positive impact in short timelines. 

After the prolonged lockdown due to the pandemic, the increase in footfall towards malls, shopping, back to office, campuses was expected which has in turn increased the demand for good rated commercial assets.

This positive trend fuelled by introduction of amazing infrastructure development across India is also going to boost the demand for commercial assets across the country. The members of CREDAI-MCHI and the most prominent developers of MMR are betting high on selling and leasing aspects of commercial real estate and it is well supported by the increased transaction volumes with upsurge in demand and enquires for the commercial real estate class. Commercial real estate is historically known to earn better yield due to increase in rural to urban migration and increase in the lifestyle standards of urban areas in India. Because of these reasons, the idea of investing in the commercial real estate is picking up amongst even the wealth managers. 

The said uptick in commercial real estate is further fuelled by the entry of REITs which is gaining a lot of investment attention as of now. Though it is an emerging concept, CREDAI-MCHI is confident of its growing positive impact as a trustworthy and convenient investment tool. Commercial real estate is becoming one of the preferred investment destinations for individual as well as institutional investors and is witnessing a positive trend. 

Commercial assets continues as a strong investment option and is maturing along with a structured financial system in India as well as MMR.

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