With the declining numbers of COVID 19 cases, the Indian real estate market has begun to show positive indications of an upturn. As a result, the average sales of commercial real estate properties, both in lockable and unlockable segments, is scaling up at a rapid pace, driven by the gradual growth of the IT/ ITeS and pharma sectors.

According to the recent JLL report published on the status of gross office absorption rate in 2021 shows that the overall consumption of commercial office spaces in major Indian cities has hit the historical milestone of 4.39 million sq. ft. while stretching the projection to 32% YOY growth in the second quarter itself.

Since then, this gross growth of the commercial real estate market in India has remained almost stable and has given better monetary returns, especially in terms of ROI and rental revenue.

Considering these steady growth patterns and gradual rise in market stability factors, businesses and corporate houses have started to resume their offices across various metro cities in India. On top of that, the new wave of start-up culture and entrepreneurial spirit combined with innovative industrial policies and PLI schemes have also acted as a catalyst for the adoption of new office spaces for sale in India and pressable retail spaces for India. And perhaps this is why more and more NRIs are taking an interest in commercial real estate markets. Read the following blog to know why commercial properties in India are alluring to most NRI investors.

But before moving forward, we want to drag your attention to Noida’s one of the most appreciated commercial residential projects, popularly known as WTC CBD Noida. It is a world class commercial business district, offering pre-leased office spaces and retail shops in Noida with ROI. To know more about it click at WTC CBD Noida.

Factors, Driving NRI’s Attention in Indian Commercial Real Estate Market

Historically, Non-resident Indians have always seen commercial real estate sectors as one of the most desirable options for investment. Here are some of the major factors that are influencing NRI to invest in commercial real estate markets.

Demands in Other Industries:

Apart from the rapid growth in residential real estate sectors, the commercial real estate market in India is also showing promising signs, attracting huge inflow of FDI from all over the world, making it more lucrative and terms of extracting higher return on Investment. Driven by the rise in retail, hospitality, It, ITES, e-commerce and pharma sectors, the demands of commercial office spaces and retail shops have seen enormous growth in recent times.

Innovative Laws & Regulations:

With the enactment of innovative government reforms, new laws and regulations, such as Real Estate Regulatory Authority (RERA) Act and GST (Goods and Services Tax) have significantly boosted the growth of the commercial and residential real estate sectors in India, while empowering the property buyers and real estate investors with the rights of scrutiny and grievance redressal mechanism.

These laws are acting as the rays of hope for new NRI investors, strengthening their faith in the commercial and residential real estate industry, thus huge abysmal FDI in the commercial segment. Consequently, NRI’s from all across the globe have started to reinvest in projects, offering lockable and unlockable commercial office spaces in Noida, Delhi, Gurgaon, Bangalore & Pune and retail shops for sale in Noida and all over the country.

Market friendly Initiatives, Schemes & Policies:

Several government schemes, initiatives & financial rebate, related to the subsidies assigned for the establishment of new industrial complexes, & start-up, are also contributing to the direct and indirect growth of commercial real estate sectors.

Recently the Government of India has also launched many of such campaigns. Production-linked Incentive scheme is one among them, a popular strategy created by governments of India to boost the manufacturing and production of critical goods like semiconductor-based communication devices and IOTs in India.
As a result, more and more new entrepreneurs are coming up with their new start-up ideas, thereby driving the needs and demands of pre-leased commercial office spaces in Noida and retail spaces for sale in Noida and all over India.

Low Budget & the Advent of Co-working

Not all the new companies and start-up have enough budget to buy luxury commercial office space and retail spaces. Buying a brand-new commercial office space in any of the major metro cities in India is a costly affair and can make a big hole in the pocket.

Besides, what is the point of leasing an entire commercial office when you only need a few chairs and a handful of amenities to run your entire start-up, especially in its initial phase.

And this is the reason why many small businesses prefer to work from co-working spaces which are cost effective and also allow the users to work with like-minded people. This, intern, has resulted in the higher demand for luxurious co-working spaces in India.

Considering this trend, many prominent real estate companies are coming up with their own shared working space, blended with their own ideas of comfort and luxury which further makes commercial offices for rent and sale in India a lucrative and ROI driven option for NRIs.

Higher Rental Revenue & High ROI:

Commercial office spaces in India have always been a great option of investment for NRIs who want to aggrandize their ROI and sow the seeds for fixed income for a prolonged time. With lower risk profile, better capital appreciation and extraordinary yields, Grade A commercial offices and retail spaces, specifically curated for offices, logistics centres, IT parks and REIT, have successfully drawn the humongous amount of NRI investments for the last few years.

Better Than Residential Properties

On an average, Commercial properties generate 8-11% Percent of rental yield which is way better than the present rate of rental yield that comes from residential properties. Apart from that, such a high rate of capital appreciation makes commercial properties a more lucrative option for NRI investors.luxury swiss watches replica replica victorinox watches
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