A Bull Run for Commercial Real Estate in India

India's commercial real estate industry is highly competitive and well-organized. The demand for commercial real estate space has increased as a result of the growing economy, digitization, expansion in the IT/ITeS industry, and various government reforms (industrial corridors, FDI policy, RERA, REITs). As the government loosened FDI regulations, foreign money flooded in, encouraging the construction of malls and other structured retail areas. At the same time, the need for collaborative office spaces, smart storage, and logistics hubs was driven by the digital economy and e-Commerce.

Similar to other Asian cultures, a sizable share of overall investments in India is made up of real estate. It has long been regarded as a dependable, secure, and risk-reduced investment. The value of real estate as a safe haven to save your money has been further emphasised by the recent collapse in the cryptocurrency and financial markets. In contrast, home was once the preferred investment in terms of time. The shift toward housing was influenced by a number of things, including the accessibility of options, general recommendations from friends and family, the ease of management of the property, and a lack of understanding of commercial real estate.

However, during the past five to six years, trends have begun to change as Indian investors increasingly recognise the value of commercial real estate as a sophisticated asset class that can generate above-average rates. There is increasing interest in office stocks, retail spaces, stores, and related, to generate consistent rental income in addition to favourable capital growth.

India's economic Bull Run over the past ten years has contributed to its transformation into one of the world's fastest-growing emerging economies. When the South Asian economy came under worldwide scrutiny, people in India began to see the value of commercial real estate as a sound investment choice. The ability of commercial assets to outperform residential assets in terms of ROIs began to dawn on buyers and investors.