The pandemic had adversely affected the need for new office spaces. The long-term closure of offices and working spaces had driven the commercial real estate industry into a loss. However, commercial real estate in India has sprung back to all its glory with respect to growth.
With people returning to offices, commercial real estate gained massive relevance. Another reason for the elevated demand for CRE was the popular concept of innovative coworking spaces, impressive amenities, and customized office space options.
Commercial real estate is predicted to have a steep growth because of Hub and Space working models. The net absorption of the office market in tier 1 cities across the country was recorded to be 38.25 million sq ft in 2022, according to JLL India.
The Future of Commercial Real Estate
The real estate industry of India has faced steady and rapid growth. It is predicted to increase to US$ 1 trillion in 2030, which makes it third largest in real estate world. The sector is also expected to contribute 13% of the total economy by the year 2025. The rise has also led to a rise in construction costs. However, they will lead to benefitting the existing assets in a profitable manner.
The commercial real estate sector in India has been showing steady growth. This is despite the tough blow it faced during the pandemic. The real estate sector is a great opportunity for commercial estate investors. It is well-positioned to provide high returns and commendable growth in the coming years.
Commercial real estate investing, no doubt, is a highly profitable investment choice. However, before investing in a commercial property, investors should properly research, read the documents related to the investment thoroughly, and then make an informed decision. Having a clear idea about these factors can help one get investment opportunities that would match their expectations.