According to industry experts, the commercial real estate sector in India is expected to grow in the coming years. Government initiatives such as Make in India and other reforms in the realty sector such as the introduction of the Real Estate Regulatory Authority (RERA) and GST has enabled this growth in the commercial sector. Given the popularity and demand of commercial real estate, large scale investments are being made by institutional investors. Some of the upcoming commercial projects in Noida such as the Anthurium, I-Thum, etc. are gaining huge popularity nowadays.
Today, we will talk about some of the upcoming trends in the Indian commercial real estate sector and these are as follows:
The advent of REITs:
The advent of Real Estate Investment Trusts or REITs in India provides diversified and secured investment opportunities in the real estate sector. It is bound to minimize the financial deficit in the real estate sector. For a long time REITs has been demonstrating a successful track record providing a high level of current income coupled with long-term share price appreciation, inflation protection, and prudent diversification for investors. Given the better pricing and growth opportunities, REITs are expected to increase demand in sectors such as manufacturing and IT-related institutions. The REITs help developers reduce the stress of elevated capital costs involved in funding projects.
Co-working or Hybrid workspaces
The growing trend of co-working is indicative of the fact that the nature of work culture is evolving. Young startups or small businesses are especially benefitted from the co-working spaces as they do not prefer to work in a corporate environment. All this has driven the demand for co-working or hybrid workspaces, one of the key aspects of the commercial real estate sector in India. Upcoming commercial projects in Noida such as Anthurium offers world-class co-working or hybrid workspaces. The reduced costs and the flexible work environment, have attracted several entrepreneurs, freelancers, and start-ups to adopt the model.
Rising demand for Indian office markets
The “Make in India” initiative has encouraged many people to start their own business. This has led to the emergence of various start-ups in the country and as more and more industries are getting established in the country, the demand for office spaces is also increasing rapidly. Major reforms combined with initiatives such as REITs have pushed developers to provide good quality workspaces in the service sector in order to adequately meet the needs of the workers. All this makes India a good choice for making an investment in the commercial real estate sector.
Expansion of the warehousing and logistics sector:
The expansion of the warehousing and logistics sector has offered multiple benefits to the commercial real estate sector in India. The increasing rates of foreign direct investments have significantly boosted the industrial sector. If the current macroeconomic factors, as well as policy reforms, are maintained, the warehouse and logistics sectors are expected to maintain current growth rates in the upcoming years. Thus, we can say that the warehousing and logistics sector plays an indispensable role in the growth of the commercial sector.
So, these were some of the upcoming trends in the commercial sector in India. These trends encourage real estate developers to deliver world-class projects that meet the needs of the future generation. Some of the best upcoming commercial projects in Noida are Anthurium, I-Thum, etc. that are designed to meet all the needs of the clients. The commercial real estate sector is expected to prompt the real estate market due to the shifting attention of the high net worth individual segment to the sector due to higher returns on investment and better capital appreciation.