As per the current scenario, investing in a commercial property is one of the safest options to keep your hard earned income secure & earn for the future. With an increase in the flexi working cultures, hybrid models and increasing demand for more emphasis on employee health has further led to a boom in the real estate market. The commercial property investments, although a bit higher than the residential investment, serve to be a long term asset and yield high returns for future.
It is a low risk investment against the volatile market investments which have higher risk & uncertainty. With a positive outlook for the upcoming uncertain conditions, an owned commercial property is surely one thing that is going to keep you stay calm and feel secure. Over the last few years, the post pandemic effect has made the commercial real estate market interesting and attractive for the investors for a varied number of reasons.
Benefits of Investing in Commercial Property
Most of the businesses felt the burn of paying rent during the pandemic which led to closures in some cases as well. Since then, having an own space for office use has become an essential part for small business owners. Also, for those who have the potential to invest, it surely adds on to the passive income with the rise in the number of people starting their own venture every day. The government’s initiative for mass vaccination drives and other inputs have made the people confident in getting back to the office culture with even better grades. As per one of the reports from the real estate market, it is assumed that the office space consumption will cross 60 million sqft in metro as well as non – metro cities by 2023. These trends make it even more lucrative for the investors to put their hands in the commercial projects.
Co-working culture & Rise of Start-ups
With the increase in the number of startups and the co-working culture, the demand for commercial spaces is sure to rise. There has been a demand for seats for co-working offices in tier 2 and 3 cities. The constant growth in this sector is a promising aspect for investors in commercial real estate.
Data Centres & Warehousing demands
With the rise of the e-commerce industry and growing digital platforms, the demand for their backend is sure to increase. The E-Commerce platforms have a constant need for data centres & warehouses to manage their inventories and other units, which serve as the backbone of their business model. As per the statistics, the industry is further predicted to grow exponentially. The Warehousing segment has emerged as a promising opportunity among investors. With the rising growth of the E commerce sector, 3Pl & manufacturing units, the warehousing demand in the smaller cities has taken a leap. The shift in the buying behaviour & more usage of internet among these tier 2 & tier 3 cities has led to the growth of e-commerce manifolds, thereby, resulting in increased warehousing demands. Third party logistics has also increased the demand due to the specialised service for the storage & distribution of goods.
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Apart from these, few other factors will play a pivotal role in making the commercial real estate market as one of the first choices for the investors. The current trends and statistics ensure a good return on investment for the Ahmedabad projects in 2022-2023. The coming years are surely going to be a golden period for the real estate market.