If you are thinking of how to invest in commercial property, then you must be aware the facts about the growth and future of Commercial Real estate in India. Commercial real estate in India is expected to grow at a rate of 13% annually between 2022 and 2027.
This growth is set to contribute significantly to the real estate industry, reaching an estimated value of $1 billion or 8100 crore INR by 2030, with a major portion being held by commercial real estate. Investing in commercial real estate can be quite rewarding now, given India’s growth and the expansion of brands into smaller markets, especially Tier 2, Tier 3, and Tier 4 cities.
What is Commercial Property
Commercial properties are buildings or spaces used for business purposes. These include places like offices, banks, hotels, Showrooms, company outlets, shops, restaurants, factories, warehouses, malls, and more.
In simple words, any property located in markets or along main highways that can be used for business activities is called a commercial property. Sometimes, older properties registered for residential or agricultural use can also be converted for commercial use based on local development authority regulations.
Type of Commercial property we should invest
Investing in any kind of commercial property is beneficial, but putting your money into retail spaces is especially valuable and preferred because there’s always high demand for leasing. Besides retail spaces, you can also consider investing in other types of properties such as malls, warehouse lands, office spaces, SEZs for factories, school lands, and hotel lands.
Investing in pre-leased commercial property is in high demand because it ensures immediate returns without having to wait for the completion or handover of the project.
- How to find Pre Lease Property in India
- Lease Property Meaning in Hindi
- How to lease Property in India
How to invest in commercial property
Investing in commercial property is often a smarter choice compared to other real estate investments. Nowadays, there are several options available for investing in commercial properties:
- Direct Investment: You can search for properties for sale in the market within your budget and close the deal using your own funds.
- REITs (Real Estate Investment Trusts): You can own shares of REITs, which are traded on the stock market. By investing in REITs, you can earn returns in the form of dividends and share value growth.
- Group Investment: This is quite common in India, where people form smaller groups to buy properties with higher budgets. These groups can consist of family members, friends, or business partners.
- Private Equity Groups: Property management companies now allow groups of retail investors to invest in large commercial properties with smaller individual investments. These groups can vary in size, ranging from 100 to 1000 people.
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