Increasing demands of affordable real estate in India has been on a rise
since past few years. People want to buy a property and keep it as a long-term investment.
Same is the case with the demand of commercial properties in the country. Due
to increasing urbanization and work opportunities, entrepreneurs and
multinational companies have been investing in luxurious commercial properties.
Huge offices with plush surroundings have become a plus point while hiring in
different new work places. Not only this, job seekers are also giving
priorities to the companies with comfortable and lush offices.
Rise of Commercial Property in India
Real estate gurus have always predicted that the market
predictions for commercial and residential property are quite different. It is
because of the fact that the potential returns and maintenance costs are
directly associated with it. Moreover, absorption of commercial property has
vastly improved since the past 5 years and the trend is likely to continue.
Given that a commercial property could be anything from a small
office, a shop or a commercial space in a residential complex. Talking about
the recent changes in the real estate sector, it would not be wrong to say that
commercial properties offer a flicker of hope for investors. The same could not
be said for residential properties as the demands have been a little sluggish.
Apart from that, commercial properties have been gaining traction due to its
availability as many new builders prefer it over residential properties. Hence,
with this renewed demand, rental and capital values are showing definitive
signs of development.
According to Colliers International, a real-estate consultancy, since the first
half of 2013, companies and owners have rented 30.44 million sq ft of office
space across India. Presently, the number has risen by 17 percent to 35.62
million sq ft. With this remarkable increase, putting your money into commercial
real estate business is a safe bet.
The Way Forward
When we talk about offices in commercial properties, a lot of
companies in India are already in an expansion mode and spreading out into
bigger spaces. The second quarter of 2015 proved out to be a safe period for
investors as there was a quarter to quarter increase of about 70%. On top of
all these factors, location of a property plays a vital role in its business.
Therefore, people who are a little skeptic about their investment plans should
opt for ready commercial office properties as it would give them a steady cash
flow for the future.
An important aspect of commercial real estate is that one has to
keep in sync with the economic cycles, which helps in planning out new
developments. Also, if you are planning to rent the property, then being
updated about rental structures is always a good option. If you’re the owner of
the complete India property, then it is
also advisable to maintain it from time to time in order to keep it up-to-date.
The ideal investment horizon for commercial properties is calculated out to be
between 5-7 years and one has to take care of financial capabilities, market
knowledge and holding power while making the final choice.
