Good days ahead for commercial real estate

The cautiously optimistic days for commercial investments have finally ended. Though we can primarily summarize the blossom period of commercial real estate with the economical growth, the factors behind it are multiple. Here is an analysis of how the upswing of commercial sector was possible in India and how it has contributed the economy of India.

Start up world

The startup world has emerged rapidly in India. They have grown multifold attracting a lot of foreign capital. This peculiar culture is vastly disruptive to rule out the traditional businesses. Provided the human resource and immense talent pool of the globe’s second most populous country, start up world will scale to great heights. This has proved as a factor for the robust demand for commercial sector.

Impact of global investors

Lured by the potential market, business friendly status and the relatively inexpensive labour costs, global entrepreneurs and tech professionals are widely targeting to put up business in India. Also with the hike of opportunities in India, the once migrated talent pool of our country is also vastly retrieving back to India. These potential groups have also proved their contribution in commercial real estate boom.

100 % FDI in e-commerce

By now, India is the breeding ground of many significant global e-commerce players. In a futuristic perspective, the 100 percent FDI will aid notably for the commercial boom as office spaces are prerequisite to perform their business. In a second place, the warehousing and logistics real estate will also witness a growth. Since a valuable amount of the clients are residing in the Tier II and Tier III cities, the growth will further peep into more hinterlands across our country.

Market statistics

Commercial real estate is marching through its brightest of times. With the present analysis and trends, it would only gain more thresholds in the future years. Here is some statistics that underline the golden days of commercial realty.

  • Last year saw the highest ever leasing of office spaces across 7 major cities of India. The graph touched an all time high of 38 million sq ft, where as in 2014 it was 33 million sq ft.
  • Lease rentals have scaled up in central business districts in NCR, Bengaluru and Pune.
  • In what will affirmatively script the fortune of real estate, a survey has revealed that an investment over $1 trillion is likely to enter the global realty market.
  • In case of the commercial real estate, a survey has unfolded that the available capital targeting commercial realty has reached $443 billion in 2015, the highest ever since the records began.

So it seems like real estate boom is unstoppable. It is well placed to only boom in the forthcoming days. With the flourish of startup culture, the housing segment will also witness a notable growth parallel to the spurt of commercial segment. So stay with real estate- the timeless and best asset class of investment and attain financial prosperity.

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