The Indian economy has become the home of the world’s biggest companies like Amazon, Meta, and Google and boastsof being the third-largest startup ecosystem in the world. This has given a push to the Indian Commercial Real Estate industry. The development of robust office infrastructure has led to a growth of economic activity in the country, which has created large-scale employment for the blue and white-collared workforce as well as opportunities for real estate-focused startups.
In recent years, India’s commercial real estate (CRE) market has seen an increasing occupier interest, as well as the rise of small and medium real estate land developers. A segment of institutional capital has acted as acatalyst for the sector.
The supply of commercial real estate is expected to hit new highs. As recession grips, major economies globally and India are the only positives in an otherwise gloomy economic scenario. Several new office/commercial projects are scheduled to be completed in the coming months.
Several developers have put their expansion plans on hold due to COVID-19, and are now looking to capitalise before recessionary fears increase input costs. There has been a strong increase in occupier demand and developers are looking to complete commercial projects before inflationary pressure starts impacting costs and demand.
The two major developments which are expected to transform the investor profile of commercial real estate in Indiaare the launch of Real Estate Investment Trusts (REITs) and fractional ownership. These interventions will allow retail investors to make low-ticket investments in the commercial real estate sector and get good returns. This will enable retail investors to make investments/purchases in commercial properties.
The future of the Indian commercial real estate industry is looking positive and 2023 is going to mark a new era in the country. It will become an ideal market for both domestic and global investors, and present an early mover advantage as the sector slowly becomes the fastest-growing commercial real estate market globally.
