Post-COVID Value of Commercial Real Estate in 2021
Here is Why Commercial Real Estate is the Best Investment this year!
The Indian real estate sector is linked to over 220 sectors and represents 6-7% of the Indian Economy. It is predicted to contribute to 13% of the economy in 2025 with commercial real estate being a key part of its growth.
2020 saw a rise in Foreign Direct Investment (FDI) and the country’s oath to be ‘self-reliant’ adds up in favour of commercial real estates’ progress. According to a report, commercial real estate increased from 41.6 to 58.6 million sq. ft. in leasing activity at a CAGR of 12% over 3 years.
Even though India was hit hard by the pandemic, the end of September quarter saw commercial space’s absorption hit up to 58%. Post relaxation, businesses are trying to get back to office expecting new workspaces with higher safety standards, hygiene measures and dedicated captive amenities.
The recent amendments in Real Estate Investments Trust (REIT) are favourable for investors, making commercial real estate a constant spot on their radars. Indian REIT schemes are now more attractive than global, which has made way for grade A commercial real estate investments in India.
In 2021 commercial complexes and high street stores are predicted to be a trend more than shopping malls. After the pandemic, the IT sector is rapidly looking for ways to heal increasing the demand for commercial spaces. The Indian market is also going to be hit by 5G soon creating an expansion in IoT enabled products. Technological expansions are so massive that the country needs more cloud computing services and data centres in 2021.
With startups and foreign companies hitting the Indian market, commercial real estate is in a position to do extremely well in 2021. A never like before project in Mangalore, Rohan Square at Pumpwell, features commercial spaces with high-end amenities and corporate design, making it perfect for an investment or any business looking to set base!