The Indian real estate sector, which has focused on apartments and villas since the beginning, is gradually changing its contour towards commercial options like office spaces, retail spaces, and serviced apartments The high rate of urbanization in Tier 1 and Tier 2 cities , continuous infrastructural advancements, and traction from institutional and NRI investors have given way to the popularity of commercial real estate. Noida and Gurgaon are among the top markets for commercial property.
Here is some information on what the future of commercial real estate might hold for individuals who are considering investing.
Rising Demand from MNCs and Indian Startups
The service sector has been expanding, and the most employment comes from the foreign companies that have setup bases in Indian cities MNCs are also outsourcing their background operations to Indian agencies, which again leads to the demand for more office spaces in the country. Every year, several startups begin operations in India, thus adding to the demand for office spaces. The coming years are also going to be good for commercial investors owing to the demand.
Regulatory Reforms Make Dealings Transparent
Over the last two years, the government has made several changes in the rules and regulations that guide the Indian real estate market. Successful implementation of the Real Estate Regulatory and Development Authority across several cities has brought about more trust and transparency in the operations. Common investors were reluctant to invest a significant amount of money in offices or retail establishments, but now that RERA-approved projects have improved investor sentiment, the trend is likely to continue in the near future.
Real Estate Investment Trusts (REITs)
REIT s have been finally introduced in India and they will make the real estate market more capable. These will assist the builder in raising funds and will make commercial property investment more accessible to the average investor as opposed to HNIs. Additionally, the manufacturing and IT sectors will have increased real estate demand, which would undoubtedly improve the situation.
Mixed-use Projects And Hybrid Spaces Are The Future
After the trend of co-working spaces in the country, mixed-use creations have already started by the builders. These hybrid work spaces encourage work-life balance and a flexible work environment. Commercial real estate development will be fueled by a rising demand for these types of properties. Apart from office spaces, retail shops and spaces in malls are also attracting many investors. Retail space can be a hero for the Indian real estate market. Overall, things are going to turn out great for the commercial real estate market in the coming months.