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      Emerging Trends in Commercial Real Estate India

      • 5 min read
      • Last Modified Date: April 30, 2024
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      • The commercial real estate in India is experiencing rapid growth and expansion. According to Mordor Intelligence, Commercial Real Estate India is set to achieve a valuation of USD 67.08 billion in 2023.
      • The commercial real estate growth in India will be 27.19% CAGR from 2023-2028. The market is expected to further expand, reaching an impressive USD 223.25 billion by the year 2028.
      • So, if you are also looking to maximize your investment potential in booming commercial real estate India, you can opt for commercial real estate structured debt through Assetmonk.
      • Through reputable alternative investment platforms like Assetmonk, seize the opportunity to invest in high-quality commercial real estate properties with as little as Rs. 10 lakhs. The most enticing aspect? An assured 17 percent IRR awaits you.

      Current Commercial Real Estate India Trends 2024

      1. Office Spaces
      • Due to their strong ecosystem, favored by major corporations, prominent micro-markets in the six main cities, such as BKC, Andheri (Mumbai), and Whitefield (Bengaluru), are expected to experience continued growth.
      • The tech sector may witness a slowdown in demand for traditional office spaces in 2023 due to layoffs. However, there is an anticipated increase in the share of tech companies’ demand for flex spaces.
      1. Industrial Spaces
      • The 2023 budget introduced incentives aimed at promoting the manufacturing of batteries for Electric Vehicles (EVs). This move is expected to drive significant growth in battery manufacturing in 2023. As a result, there will likely be a notable demand for land in the coming years to establish factories for battery manufacturing.
      • The main objective of the DESH Bill is to create development hubs that promote WTO-compliant domestic manufacturing. These hubs offer enticing incentives, making them attractive to a diverse array of companies looking to operate in emerging regions. Consequently, there is an anticipated increase in demand for industrial spaces in the vicinity of these hubs as more companies express interest in establishing their operations in these strategic locations.
      1. Warehousing
      • The increasing demand for rapid deliveries and the emergence of quick commerce (q-commerce) players has led to a greater need for storage facilities, particularly for in-city small fulfillment centers, as they move closer to end-users.
      • In 2023, rents for warehousing and light manufacturing facilities will likely experience a year-on-year growth rate of approximately 4-5%.
      1. Retail
      • Approximately 10 million sq. ft of new commercial space is expected to be completed and become operational. Additionally, 25 new malls are set to enter the market in prominent cities like Delhi-NCR, Mumbai, Pune, Bangalore, Hyderabad, and Kolkata.
      • There is a strong demand for high-quality shopping malls.
      • Indian shopping malls are adapting their brand mix to accommodate international brands as global retailers and popular F&B (Food and Beverage) brands make their way into the Indian market.

      Bottom Line

      In 2024, commercial real estate in India is experiencing rapid growth and expansion. Also, warehousing, retail, and office segments get expected to witness improved performance. Thus, investors must explore the commercial real estate market.

      You can unlock the potential of commercial real estate investment with Assetmonk. It is a reliable and established alternative investment platform.

      At Assetmonk, we provide a range of reputable investment products. One of our standout offerings is commercial real estate structured debt. With an affordable entry point of ₹10 lakhs, investors can take part in this lucrative opportunity. The commercial real estate structured debt ensures a solid IRR of 17.1% over a 36-month period. This is a promising highly profitable return with a low-risk, fixed-income approach.

      Related Articles

      1. 6 Signs of a Healthy Commercial Real Estate Market.
      2. Commercial real estate: A smart choice for today’s smart investors.
      3. Can the Commercial Real Estate Liquidity Problem Be Resolved? Employ These Investment Strategies.

      FAQs

      Q1. What do you mean by commercial real estate?

      A. Commercial real estate refers to properties that are primarily used for business purposes and profit generation. These properties are intended to generate income through leasing or rental arrangements. Commercial real estate includes a wide range of property types, such as office buildings, retail spaces, industrial warehouses, hotels, shopping centers, and multifamily apartment complexes.

      Q2. What is the future of commercial real estate in India?

      A. According to projections, Commercial Real Estate India is set to achieve a valuation of USD 67.08 billion in 2023, with an anticipated Compound Annual Growth Rate (CAGR) of 27.19%. The market is expected to further expand, reaching an impressive USD 223.25 billion by the year 2028.

      Q3. What is the most profitable commercial real estate?

      A. The most profitable commercial real estate are the properties that boast the greatest number of tenants are the ones that have the potential to yield the highest Return on Investment (ROI). Such properties encompass apartment complexes, office buildings, and retail spaces.

      Q4. What comes under commercial real estate? 

      A. Office, retail, warehousing, and industrial spaces come under commercial real estate.

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