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Passive Commercial Real Estate Investing is the Wave of the Future
- Would you like to sit in the comfort of your home, have a nice steaming hot cup of coffee, and rest assured that the money in your bank account is growing? Who wouldn’t, right?
- Passive income investing is not new, and will never go out of fashion. People invest so they can secure their finances, generate more wealth for themselves, and retire early. And everyone wants to find the best passive income investment that’ll provide them with high returns, and be a long term stable investment strategy.
- And if you’re bored of finding the right fund to invest in, or just want to diversify your portfolio, you’re in the right place.
- In this article we’ll see how passive commercial real estate investing is one of the best investment strategies to earn passive income.
Commercial Real Estate: A New Wave is Here
As per a report by real estate consultant Knight Frank in conjunction with NAREDCO, the National Real Estate Development Council, India’s real estate market will reach about $6 trillion by 2047.- Also, the estimated real estate output value will reach 15.5% from the current 7.7% by the same time.
- This means that the real estate sector is growing at an unprecedented rate, and more & more investors are pumping money in it, because of its potential and the high CAGR real estate provides.
But What About Commercial Real Estate?
As per Gulam Zia, Senior ED of Knight Frank India, Commercial Real Estate is expected to show a growth rate of 7-8% in 2024, a historical best for India.
According to an analysis by rating agency ICRA, the commercial real estate market in India has the potential to grow the office Real Estate Investment Trust market by 6 to 6.5 times. The REIT office supply in India’s top seven cities has increased by 3.3 times in the last five years to nearly 82 million square feet.
How to Get Passive Income From Commercial Real Estate
Investing in commercial real estate in India is a great source of income, and here’s why:
Consistent High Returns & Capital Appreciation
The demand for commercial properties, office spaces, shared coworking spaces, and shops in shopping complexes is on the rise due to growing urbanisation & shifting population to the metro cities.
Commercial properties are appreciating in value, and can generate high rental income, which is a great source of passive or monthly income, also providing a stable cash flow to investors.
Additionally, commercial properties in India can increase in value over time, offering the potential for capital gains.
Passive Gains
Commercial real estate investing has high potential for passive income, even if you invest in commercial properties in tier-2 and tier 3 cities with growing development and real estate projects.
This is especially true if you choose an investment fund, a property management company, or alternative investment platform, such as Assetmonk, to facilitate your investment.
Diverse Opportunities
From bustling office buildings to thriving retail centres, commercial real estate offers a diverse array of commercial properties for investors to explore. With alternative investment strategies such as fractional ownership of commercial real estate, investing in commercial properties has never been easier for investors.
How to Invest in Commercial Real Estate in India?
Various avenues in India offer stable income and potential for growth, making them the best commercial real estate investment options. Based on the provided sources, here are some key options.
Direct Ownership: You directly invest by buying commercial properties individually or as part of a group and managing the property yourself.
REITS: Real Estate Investment Trusts (REITs) are an investment vehicle that offers individuals the opportunity to invest in shares of companies owning commercial properties; these shares trade on stock exchanges and generate income through dividends.
Real Estate Crowdfunding: Investors pool money with other investors to invest in commercial properties or portfolios, which allows them to access commercial real estate with smaller capital amounts.
Fractional Ownership of CRE: Fractional ownership of commercial real estate in India refers to a shared ownership structure for commercial properties. This strategy entails a group of investors pooling their funds for investment, allowing them to participate and profit from property appreciation.
Fractional ownership is becoming increasingly popular in India, allowing retail investors to access previously exclusive and highly profitable real estate opportunities.
JLL forecasts that the fractional ownership market in India will increase by more than tenfold by 2030, surpassing $5 billion.
Should You Invest in CRE?
Picture this – earning income while sipping your favourite beverage on a tropical beach. With passive commercial real estate investing, it’s not just a dream; it’s a reality. Assetmonk takes care of the nitty-gritty details, so you can sit back, relax, and watch your wealth grow.
With alternative investment platforms like Assetmonk, you can say goodbye to late-night maintenance calls and tenant disputes. Assetmonk handles all aspects of property management, so you can enjoy the fruits of your investment without lifting a finger.
If you’re looking to invest for passive income, or even just diversify your investment portfolio, commercial real estate is a great choice, especially in today’s economic climate with the Indian economy growing at an excellent rate of 7%.
Smart investment allows you to focus on long-term growth, instead of chasing after fleeting investment trends. By doing proper research and focusing on the right commercial properties in the right location, the returns being deposited in your bank account will sound like music to your ears.
Invest with Assetmonk
Talking about commercial real estate, JLL India Real Estate Market report for Q3 forecasted significant office space absorption of approximately 45 million square feet in 2024, easily exceeding the benchmark set in 2023.
Looking forward, India’s commercial real estate sector paints a picture of potential and opportunity. With its fractional ownership model, Assetmonk invites investors to become active participants in this story rather than passive observers.
Assetmonk is leading the line in providing fractional ownership models for commercial properties; ushering in a new era in the dynamic real estate sector in India. The minimum entry ticket is set at 25 lakh rupees. This deliberate choice ensures that both seasoned and growing investors can partake in the benefits of commercial real estate ownership.
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