By: Mr. Pankaj Kr. Jain, Director KW Group.

The ongoing pandemic has changed the face of Indian economy. While we all know that the economy is going through a tough phase, there is a positive side of it too, which is often being neglected by many of us. One of the industries, which is making good news for consumer is commercial real estate. According to experts, this is the right time to invest in the commercial real estate market for many reasons. Let us tell you more about it and you might end up planning to invest in one of the most promising industries.

Low cost and high returns

You will be surprised to know that due to slowing down of the economy, the rates of commercial spaces have gone down drastically and market players are selling them at attractive prices. Not only this, they are also offering different discounts and offer to allure the target audience. Also, it is expected that once the situation becomes normal these spaces will give your higher returns, as the rates will spike right after the economy shapes back.

Social distancing and larger areas

The very basic of social distancing talks about keeping distance and in the commercial space, lack of space often creates chaos. To remove this hurdle, you can always opt for a better and bigger place that comes at an affordable price and extra utility space for business purposes.

NRIs and demand

It’s not just that Indian economy is suffering at the moment, even the global market is highly affected by the pandemic and it is expected that once the international airlines smoothen their functioning, many NRIs will fly back and start investing in commercial spaces to get the life back on track. At that time, due to demand, market rates might spike at a higher rate, thus this is the best time to plan for future and invest in commercial spaces from investment perspective.

Alternate investments

Real estate investment trusts (“REITs”) allow you to invest in large-scale, income-producing real estate. REITs provides you a way to earn a share of the income produced through commercial real estate ownership – without actually having to go out and buy commercial real estate. Keeping the present time in view you can invest in commercial buildings, shopping malls, apartments, hotels, resort to gain maximum benefits.  

Fractional real estate investment

Adopted from US and Europe, this trend of investment is highly popular in commercial real estate market. In this, ownership of property is the combined ownership of a single asset by multiple investors. This is being done to minimize the burden of investments in commercial real estate and attract more and more customers.