Commercial Real Estate In India: Future Prospects ?

Up to a few years ago, Commercial Real Estate was considered a sector meant only for business-class persons. The salaried class used to choose mainly residential properties even for the purpose of investment also. But, gradually things have changed and now salaried people are also taking equal interest in commercial properties.

Commercial Real Estate means any construction or space that can be used to earn money. It has a vast canvas on which a wide range of options are drawn. From office spaces to Retail Outlets, Hospitality to Healthcare services, Hotels to Eating Kiosks, Industrial properties, etc. all need to be understood for self-use or investment purposes.

Office Spaces/ Complexes One of the most popular forms of Real Estate is Office Complexes where large spaces for corporate use or small units for individual working can be bought. Small units are more in demand as they are easily manageable for renting and selling purposes. Investment can be made in large spaces also through Fractional Ownership Schemes. Office spaces can be bought in raw form or with all fittings and furniture. The office property market in India has recorded a huge high of 10.37 million sq. ft. in the last quarter.

Retail Spaces This is another highly preferred commercial type of property comprising mostly of shops or retail outlets in residential complexes, malls, street strip outlets, kiosks, etc. Like office spaces, retail outlets also come in different sizes and are available in raw and furnished forms. No doubt, nowadays people use e-commerce portals very frequently, but this hasn’t restricted the footfall of customers in malls, eateries, and local shops for daily needs and specialized services. As per Kearney's research report, the retail sector in India is expected to grow at a CAGR 9% from 2019 to 2030. Hospitality Succeeding the pandemic period, the tourism industry has taken a good jump. After three years of restrain people are now leaving no occasion to go away from their regular, monotonous lives. This has given a boost to hotels, resorts and other recreation sectors. In many commercial complexes, malls and other social places- eateries, games and recreation are given separate spaces. From large platforms to small kiosks many options to carry out such activities are available. One can expect good returns from such spaces either by creating one’s own set-up or by renting them out. The hotel industry is expected to grow at 4.73% during the period of 2023 to 2028.

Industrial Industry does not necessarily means large factories fitted with big machines. Small and medium manufacturing units, packaging and filling units and warehouses etc. also fall under the industrial real estate. The sector is growing at a fast speed. With the flourishing e-commerce activities the demand for warehouses and distribution centres is increasing. Impetus from Govt. schemes have further encouraged the setting up of more manufacturing and related units. A similar growth pattern can be seen in health care and para-medical sectors also. Stipulated spaces for Yoga, aerobics, physiotherapy, dietary, and other health care services are in high demand nowadays. Any need that is created by the populace never fades away. is its shining example. The government’s aspirational plans of Make in India, Start-up India, Mudra, and other MSME schemes have further encouraged people to look towards Commercial Real Estate Development for the fulfillment of their dreams.

For Sale/Purchase/Leasing of Commercial Properties please contact Gitin Suri @ 9810150047