2016 saw India’s growing reputation as an attractive investment destination. The global capital flow into Indian real estate in 2016 stood at $5.7 billion. According to an Economic Times article, India is attractive to both global and Indian investors, owing to increased consolidation and transparency and the launch of Real Estate Investment Trusts (REITs) that will further gear up the real estate scenario in 2017.
Co-working spaces have disrupted the commercial real estate space, even though they are still at a nascent stage. The concept seems to be working in major business hubs like Mumbai, Pune, Hyderabad and Bangalore though. Co-working spaces are, as the name suggests, shared by professionals or more recently by entrepreneurs for work. They have all the basic resources like desks, cabins, meeting rooms, internet, cafe services to kick-start their business, giving them the advantage of saving rental/ownership costs of having their own office. Hence, they are more affordable.
Consequently more commercial spaces are being taken on a lease. Major companies in information technology, e-commerce and BFSI sectors that used to buy their own offices, have now shifted to leasing offices and this seems to be an industry-wide trend. Even to expand, they might go on to look for places to be taken on lease, rather than to own. But in a way, this has spurred the investment in real estate.
According to a CARE Ratings report, as REIT finally enters its implementation phase, the Indian commercial real estate market is expected to see a healthy investment influx. Top business centers have seen rapid expansion by major realty and private equity funds. The aforementioned sectors have been major growth demand drivers for commercial real estate segment. Under pressure due to macro and micro factors, commercial space owners would find it difficult to keep their properties occupied, especially since there is higher supply addition in the commercial space, while the takers are few. Except for the immediate absorption rate due to leasing, absorption rate would be slow until the above mentioned sectors loosen their hands. These sectors usually contribute to high demands and growth of commercial spaces. Nevertheless, co-working spaces are trying to make up for the loss, the report said.
The size of affordable housing market across India is also set to increase as the qualifying criteria for affordable housing were also revised to 30 sq. m. and 60 sq. m. on carpet rather than saleable area in the four main metros and non-metros respectively.
Pramukh Group is also offering Home loans at 3.99% for Pramukh Greens in Vapi in a limited period offer. The time is ripe to make investment in the future of affordable housing. Not only that, Pramukh also has ongoing commercial projects, Orbit 1 & Orbit 2 in Surat, which will change the skyline of Surat with premium retail market and healthcare spaces.
Get in touch with Pramukh Group, to know more: www.pramukh.co.in/contact.html
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