Commercial Real Estate Investment Opportunities in Bangalore

Commercial Real Estate, which was formerly undervalued, has gained traction in recent years. Commercial property investment businesses give investors great investment options with additional benefits than traditional real estate, such as strong capital appreciation and increased rental income. In Bangalore, consumers can invest directly or indirectly in a variety of commercial real estate options. Assetmonk is a commercial real estate investment firm that allows investors to search for investment possibilities online. In Bangalore, there are several commercial real estate investment options; all investors need to do is pick one that is acceptable for them. Investors can simply participate in these commercial property investment businesses, which will then acquire or manage commercial buildings, resulting in monthly rental income and capital appreciation for the investors.

Also Read: Commercial Real Estate Vs Residential Real Estate: Best Investment For Retirement in 2022?

How healthy is Commercial Property in Bangalore?

Bangalore is a city with a lot of things going on. Bangalore, which was formerly regarded as a retirement haven, has been transformed into a busy metropolis in a little over a decade and a half, with people arriving from all over India. Bangalore’s city borders have been expanded to include an area of 709 square kilometers, which is a large size for a city increasing its boundaries.

Bangalore is unquestionably growing, with several IT businesses and huge worldwide brands opening operations there. Bangalore’s office space absorption per family is around 50 square feet, which is pretty healthy. However, the price growth of real estate in Bangalore has lagged behind that of cities like Delhi, NCR, and Mumbai. Even if you compare the scenario 10 or fifteen years ago, Bangalore’s urban layout was not as densely inhabited as it is now. It was mostly a retirement haven with self-contained residences, but with the growth of IT firms and enterprises, the city saw a tremendous population surge, resulting in greater demand for real estate and dwellings. Bangalore’s demand for residential homes increased as a result of the city’s IT-boom. Previously, the real estate sector mostly catered to the upper and luxury segments, with apartments costing in the millions of dollars.

With the birth of a large number of middle-class children, the cheap housing sector grew in popularity, and numerous developers in this sector cropped up. Today’s weighted average price per square foot is roughly Rs. 4500, compared to Rs. 10,000 to Rs. 12,000 in Mumbai.

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USP to invest in commercial property in Bangalore

Real estate prices, according to research, are favorably connected with characteristics such as GDP, domestic demand, employment rate, and stock index. Aside from the stock index, all of Bangalore’s other criteria are quite positive. Bangalore has potential for investors since the real estate business is inextricably linked to a region’s economic development.

In 2017, there was a significant reduction in project launches, with data indicating that the number of projects launched in the first and third quarters of 2017 was 50 percent lower than in 2016. This was mostly due to supply outstripping demand, which was also the situation in India’s major metros and other cities. In contrast, unsold inventory began to decline towards the close of 2017, with Bangalore’s unsold inventory falling from 1.24 lakh units to 1.04 lakh units.

Now that RERA is in effect, it has inspired fresh trust in purchasers, boosting house buyers’ feelings by providing them with a plethora of remedies for resolving builder non-compliance concerns. RERA has been in effect for about a year, and it has aided the real estate market in weeding out customer annoyances and maturing. Experts believe that after the implementation of RERA, purchasers have become more confident in purchasing properties since they are assured of their returns. The RERA has also aided in the growth of the country’s cheap housing industry, which has the largest demand in Bangalore.

There are other advantages to buying real estate in Bangalore, such as the fact that the market is quite steady and driven mostly by end-users. Large IT businesses spend heavily in the city, attracting people from all around India and the world. Because there is a continuous supply of white-collar employees in the city, this factor is advantageous for demand and housing prices to tick regularly. The city’s climate is quite beneficial, with little risk or exposure to earthquakes or other natural disasters. These qualities will constantly assist Bangalore’s real estate business in attracting a consistent demand for houses and properties, as well as a desire for commercial properties.

Furthermore, the 2017 slowdown has been balanced by a new comeback of Bangalore real estate. The industry is currently highly flashy, with demand increasing month after month. Experts believe that now is the greatest time to invest because prices are still relatively low and have just recently begun to rise. The smart would undoubtedly invest in newly launched houses in the hopes that by the time they are completed, the prices would have doubled, and given the city’s rapid infrastructure development, this is a distinct possibility in many regions of the IT capital.

Also Read: Ultimate Guide for Bangalore Real Estate Investment

Key highlights of investing in Bangalore

1. In light of Bangalore’s growth and development, real estate prices in Bangalore have not kept pace with those in places like Delhi, NCR, and Mumbai.
2. With the birth of a large number of middle-class children, the cheap housing sector grew in popularity, and numerous developers in this sector cropped up.
3. Experts believe that after the implementation of RERA, purchasers have become more confident in purchasing properties since they are assured of their returns.
4. Bangalore’s real estate market is currently extremely flamboyant, with demand growing every month and experts advising that now is the greatest time to buy because prices are still relatively low and have just recently begun to rise.

Evaluating your commercial Property in Bangalore

Pros

1. Commercial investments generate more income than residential investments. Commercial investments generate an income of around 6-9% annual income.
2. Investing in commercial real estate enables you to keep up professional relationships.
3. Since retails have to maintain a good upfront, properties will be very well maintained, and hence the interest of the tenants and the landlords are aligned.
4. Commercial properties also offer flexibility in lease terms.
5. Commercial investments offer a triple net lease.
6. They will also offer a much more objective price evaluation.

Cons:

1. The investment in the early stages is comparatively higher than in residential properties.
2. Lease in commercial properties are generally with multiple tenants and you will be expected to be present to manage the tenants.
3. The risk associated with commercial investment is comparatively higher than in residential properties.

Also Read: Commercial Real Estate ROI

Investing in commercial property in Bangalore with Assetmonk

Investor issues are taken seriously by Assetmonk, and we are well prepared to address your biggest worries and hazards. Investing in real estate may be hazardous and unexpected. Our risk assessment approach assists us in discovering and avoiding any litigation properties, or properties with a high risk of litigation. Our staff, using cutting-edge risk assessment methods and smart asset management, not only assures reduced risk but also strong performance, resulting in higher earnings. Our various tenure choices and easy resale conditions also assist our investors in overcoming the liquidity issue. We make sure that investing in our homes is less hazardous than other forms of traditional financing. Our team meticulously selects properties for listing on our site that are low risk and high yielding.