Here’s Your Buyer’s Guide of commercial properties in India

There’s a very famous proverb saying that says- “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

Known as the safest investment in the world, real estate has surely hit the right chords among investors. The real estate in India has been enjoying a relaxed phase as there is a steady development with new properties and government initiatives. With increasing annual sales in the market, this sector is poised for more profits in years to come. As compared to residential property market in India, commercial sector stands a chance for more business. Currently, there is a scope of higher demands in commercial realty sector as prices have come down since last year.

Here are a few pointers to keep in mind before taking a decision of buying commercial property-

New Business Enterprises

Rise in entrepreneurship opportunities with new enterprises have paved way for more constructions in commercial realty sector. When we talk about the last five years, there has been a sudden boost in new businesses, which has marked a marginal increase in commercial sector. Not just business owners, there are also some independent professionals who are in need for new office spaces such as doctors, lawyers and property consultants. These factors are collectively affecting the growth of Indian economy and real estate in India.

Evaluation in Prices

Before jumping to any conclusions about buying, it is essential to note that there is always a difference in the residential and commercial real estate. People who are involved in a regular business of their own are showing interest in buying office spaces rather than a residential property. This is the reason that since 2015 there has been a sudden growth in this sector and residential sector needs to catch up subsequently. Given that this sector has shown an impressive escalation, it would not be wrong to say that it is the next big thing in terms of real estate dictionary.

Professional Policies

India has been building strong on the commercial real estate sector with new government policies and Real Estate Investment Trusts (REITs). Similar to mutual funds, real estate business is also going to be handled by the certified asset management company. Till the time government finds a right pace, property market is going to become more transparent with REITs. Once refined further, REITs will make sure that you are provided with a property that you are satisfied with.

If investors are looking for a safe bet in real estate property, it is always advised to opt for commercial property rather than a residential one. A steady economic growth and corporate development, commercial market is set to become one of the most profitable ventures for both buyers and developers. Both direct purchases and leasing of office space have been on a rise, creating more market investment opportunities for many. Hence, if the trend continues then placing your money on the commercial market is going to yield more returns in the near future.

India’s real estate business: A closer look

There have been many theories and market studies about India’s real estate property and its impact on the business. There are a very few of them that are able to explain the current demands of consumers as well as realtors at the same time. When we compare Indian buyers to the other countries, they need higher degree of diligence before making an informed decision regarding their investments. A few of the factors such as price comparisons, developer ratings, project completion certificate are examples of what people should expect before making a big decision.

Talking about Indian realty market in particular, it has displayed a certain amount of volatility before 2010. However, when we bounce back on the present scenario, the real estate market looks bright and shining. The road to this recovery was led by the residential sector, which suddenly became talk of the town by projecting astonishing growth. Let’s take a closer look at different cities, which are currently dominant in the market.

• Noida/ Greater Noida

Right after Gurgaon, Nodia and its regions are considered to be the IT hub of the country. The city was traditionally introduced as an industrial area, but after a few years and with the advent of urbanization; the city soon became the IT destination. With improved connectivity to other parts of Delhi, Noida & Greater Noida is considered to be extremely favorable to invest money these days.

• Mumbai Metropolitan Region

Among other cities in the market, Mumbai has always been a dominant one. It witnessed almost a same situation as that of Noida and is now known as the IT sector of India. Growing demands of office and commercial properties has made this city an attractive stop for the real estate professionals. Thane in particular, has been the most lucrative area of Mumbai with constant growth and interesting deals.

• Bangalore

The Whitefield area of Bangalore, which was formerly known as the residential collective of the city has now become a great spot for IT companies to establish themselves. Within the reach of almost all modes of transport and serene surroundings, Whitefield has never failed to impress investors. Much as the residential investors were interested in this location, it also lured many occupiers to take up large office spaces. Therefore, absorption of commercial India property in this area of Bangalore has never disappointed due to its ready-to-occupy and urban infrastructure.

• Chennai

Chennai with its southern suburbs has become a hotspot for those who are in awe of nature and serene surroundings. Realtors who were looking out to invest in large and well-planned office spaces have made some remarkable decisions by going with a property in Chennai. The neighbouring locations such as Medavakkam and Keelkattalai have turned out to be a spot for people to find entertainment with the help of retail developments.  

Besides these cities, there are also many small and large scale areas of the country that have never failed to stay behind in the development process. With more number of cities adopting urbanization, the country is going to ride high on the real estate forefront.