The commercial sector of real estate is getting strong, while the residential sales have been down since 2013 which is why the inventory segment is still high.
According to a report, Commercial real estate is boosting up currently with a healthy demand in the market, precisely in the office space segment. The gains in office leasing are recorded as 15% at 33 million sq ft across the top 8 cities of India. The demand of office space has been increased during January-September.
In NCR, which includes Noida and Gurugram has the highest vacancy of office segment at about 29 million sq ft. As there is an adequate supply, for now, that is why the rentals are in check, but in future, there will be more demand so the supply will pace up in the vacant area as well.
The report says that in all India real estate there was the launch of 7.9 million sq ft in July 2018, but the sales across the major cities were only 22.2 million sq ft. Moreover, in July 2017, the inventory has consequently dropped from 1 billion sq. ft. from 1.1 billion sq. ft., which is 10%.
The confidence in the residential sector is very low but the trust in commercial is boosting up day-to-day because of the rental value and the property appreciation as well. This is the ideal time to invest in commercial property.