Exploring the Benefits of Investing in Commercial Real Estate in India

Commercial real estate invesment advantages

Investing in commercial real estate in India offers numerous advantages such as higher returns, value appreciation, and diversification of investments. As the sector witnesses a significant upturn, an increasing number of investors are turning their attention towards commercial properties. This article delves into various options available within this segment, highlighting their unique features and providing essential insights.

Office Spaces Dominating the Landscape

Office spaces, particularly in major cities like Mumbai, Pune, and Bengaluru, are the preferred choice in the commercial real estate segment. These spaces, often located in skyscrapers and high-rise buildings, come equipped with modern amenities such as elevators, service lifts, cafeterias, conference rooms, CCTV surveillance, and round-the-clock security services. Dhinesh Subramanian, a broker, mentioned that investments in office spaces tend to be more liquid compared to retail spaces and commercial plots.

Retail Investment Opportunities

Investing in retail properties, such as shops within malls or commercial complexes, presents a viable opportunity, especially when these properties are rented out. 

Mohan Patel, a senior executive at a real estate consultancy firm, highlighted that location is crucial for retail properties. Retail tenants generally favor prime market areas or properties situated near residential and commercial complexes.

Commercial Land Dynamics

Commercial land, while experiencing relatively limited demand compared to office and retail spaces, attracts specific buyers. These buyers typically aim to develop facilities such as cold and regular storage spaces, manufacturing units, or sorting facilities. 

Mohan Patel added that such plots are particularly sought after in areas close to national highways to facilitate easier logistics for businesses.

Attractive Returns and Strategic Investment

When investing in commercial real estate, it is important to monitor current market trends and understand the demand-supply dynamics. Ganesh Prasad recommended assessing one's budget and financing options since these investments usually require significant capital. He also advised identifying opportunities that align with individual requirements, whether they be office spaces, retail units, or industrial properties.

Pradeep Rathod, a senior lawyer, emphasized the importance of conducting thorough due diligence. This includes inspections, legal checks, financial analysis, and risk assessment to ensure a profitable investment. With careful planning and strategic investment, commercial real estate can significantly enhance an investor's portfolio and offer substantial returns.