Investing In Commercial Real Estate, In The post-pandemic Era- Is It A Good Option?
Real Estate segment has been a direct victim of the ups and downs of the market due to Pandemic; there is no disagreeing to that. Having said that, when we look at the overall picture, the average growth per year is almost back to normal considering the various sudden spurts of growth in between.
And when we say that, it applies to both Residential and Commercial properties.
While we all know and have heard amply about Residential Real Estate Sector seeing good days, here’s how it works for Commercial Real Estate.
1. Work from home. Here to stay?
Well, it definitely has been quite a big saving for most companies- big and small alike. But as time passes, it is causing more than one problem for employees and employers both.
- Long hours and loss of boundaries between personal life and work life timings
- Digital fatigue due to long hours of online presence
- Lack of exposure and growth due to missing out on meetings and movement
- No team building and team work happening causing productivity to go low
WFH is definitely not here to stay in the long run and that is seemingly visible as all companies have started offices and people are more than eager to get back.
2. Change in requirement and type of space for offices
The first natural thought to this is that the office space requirement must have lowered as companies are opting for a hybrid work from office model and alternating their employees at work.
But that isn’t the case in reality. With hygiene and social distancing becoming very important, companies are looking at bigger spaces to ensure there is ample space and the bathrooms, pantries are big enough too.In fact, there has been a major mindset shift where we see that companies are understanding the value of well being of their staff and investing into it actively.
3. Commercial Real Estate still remains a high yield investment option
It’s pretty simple. Rental returns for a Commercial Property still remain higher than Residential and they will continue to be so. With people getting back to offices, the temporary fall that happened in between has recovered.
4. Impact of rapid Vaccination on the market:
With India’s mortality rate being low and the speed at which vaccination is happening, it is raising the eyebrows of all the investors sitting outside who are continuously viewing the India’s emerging market. It is making them positive about it and inviting a good flow of cash inside, Commercial Real Estate being one of the beneficiaries of the same.
5. Other Indications:
Sensex has crossed the 50,000 mark and GST collections are on an all time high. The GDP growth has also been a promising 20.1% for Q2 2021-22.
All these points help us join the dots to a healthy uprising sentiment in the market of investments overall.
What do we have to offer to you, in our Commercial Real Estate Segment?
1. Boulevard Towers – Sadhu Vaswani Chowk, Camp :
Located in the heart of Pune City, the project is perfect if you are looking for a well connected office space. The project has been referred to as a highly inviting property in terms of Business.
It is also a very lucrative investment for NRIs as the loation demands rapid and high rentals.
Know more about the project: Boulevard Towers
2. BramhaCorp Business Park:
Loacted in the posh locale of New Kalyani Nagar, this is just the right option both employer-wise and employee-wise.
It is connected to a heavy residential setup and the same time, is between the most happening part of Pune city.
Look at it as your own office or as an investment, the project is a high yield one for you.
Know more about the project: Business Park
Sources:
1. http://gstcouncil.gov.in/sites/default/files/gst-statistics/GST-Revenue-collection-August_2021.pdf