India's commercial real estate has grown and is a great place for investors.
Thinking about investing in commercial real estate abroad? Even if you are not but your into domestic commercial real estate, this is a good article for you. If you are an investor in commercial real estate then you should stay up to date with international commercial real estate markets as well.
India in the post liberalization period has witnessed rapid economic development. This has initiated the growth of the real estate market in the country. The high demand for office spaces has led to the construction of high-end tech parks all across. In fact, for the past 5 years, the commercial real estate has picked up significantly and now has transformed architecture to major extent. Let us take a note of some of the highlights related to commercial real estate sector.
A Note on Commercial Real Estate Sector
India enjoys a competitive edge in the commercial real estate as it has vast pool of intellectual capital and cost effectiveness. The 496.4 million work force of India indeed serve great potential for real estate investments.
The real estate investment has indeed good future prospects as the sector has a growth of 30% per annum as well as a 30% average rate of return.
According to the latest investment, there would be an increase of about $ 14 billion to $ 102 billion revenue in the next 10 years. Even though the NRI section has not even tapped 20% of the market, they still find investment in India ensures returns that go more that expected profit.
Much of the growth of the commercial real estate sector is initiated by the government of India. Due to the relaxation of rules for FDI investments and Tax incentives for NRIs, the inflow of foreign capital has been encouraged to great extent. In fact, in India, the global investors can certainly look out for 25% ROI.
Another very important reason behind the growth of the commercial sector is the organized retail. The shift in the pattern of luxury goods along with the increase in the purchasing of the consumers have led to the big ventures in the real estate. For example, the RPG Spencer’s has huge presence in south India. Others include FoodWorld, MusicWorld and Health and Glow and majors like Birlas, Tatas and Reliance.
The urban concept of entertainment, fun and leisure has also undergone major transformation. Structures like multiplexes and 5 star hotels are now spotted in all cities of India.
India has turned to be a highly popular destination for investments as its commercial real estate itself yields more than the global real estate.
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Aadi Sharma
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