Despite a roller coaster ride in 2021, India’s real estate sector is on a solid recovery path. Both residential And the commercial real estate sector is optimistic about sustainable growth in the near future. From an investment perspective, people always think about where to invest – residential or commercial.
According to Nakul Mathur, MD, Avantha India in 2022, the commercial real estate sector is witnessing a huge demand as the commercial expansion, which was stalled for the last two years, is bound to materialize in 2022.
“In general, the Rental Return on Investment (ROI) potential of a commercial investment is far better and more sustainable than that of a residential location. Long-term leases and contracts ensure a regular stream of income for realty investors. 2022 In the U.S., commercial real estate investment will be concentrated in offices, co-working spaces and affordable stores. The growing trend in commercial real estate is fractional ownership. In this concept, the investor invests in a portion of the property rather than owning the entire property and returns to the good. yields returns. This trend of fractional ownership will continue to accelerate in 2022,” said Nakul Mathur.
It completely depends on the investment horizon of the investor, said Siddhartha Maurya, resource specialist, real estate and fund management.
“As a thumb rule, if the investor has a large investment horizon and is looking at a very long term investment horizon for a long time, then there is an option to choose commercial real estate. However, factors like location, availability of physical and social infrastructure and connectivity should be kept in mind while investing in commercial property,” said Siddhartha Maurya.
“There is no doubt that residential real estate investing generally comes with a low price tag and many people think of investing in flats, apartments and residential properties for sustained rental income. Residential in 2022 Real estate investment will be concomitant with the recovery cycle and as offices/commercial establishments start recalling the workforce to work, there will be a simultaneous recovery in the rental market,” said Dr Atul Goel, MD, Goyal Ganga Group and Chairman (Election) , said NAREDCO Pune.
According to recent industry reports, office space absorption stood at 1.2 million sq ft between the July-September 2021 quarter, up 168 per cent over the previous year. Major markets such as Noida, Greater Noida, Delhi, Mumbai, Hyderabad and Chennai continue to attract commercial investors as they see a bright prospect in their rental income potential.
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