Commercial Property investment is the most sought-after investment owing to the lucrative returns. The peculiarity of commercial real estate is the ample investment opportunities provided to investors. The diverse investment options complement numerous industry requirements like warehouses that support pharma and e-commerce industries, data centres, office spaces, and many more.
The prime motive of Commercial property investment is to earn profitable returns. Location plays a prominent role in attracting tenants and capital appreciation, thereby increasing your returns. Hyderabad is gaining attention as it has proven its mettle by holding the lowest unsold inventory among all the metropolitan cities across the country. The town has exhibited stellar performance in the realty sector and seems promising, and here are few commercial property investments that are trending in the city of Nizams.
Commercial spaces are often referred to as office spaces. According to Cushman and Wakefield’s Report on the Indian Office market, Hyderabad constitutes a significant share of 26% in holding the commercial office space across the country and stands at the second position, only after Bengaluru, for the fourth quarter of the year 2020. The net absorption also stands high at 26.6% during the same time, and this is attributed to the pre-commitments that have become operational with the restoring markets.
Hence, the office space market in Hyderabad seems promising with the emerging IT hub that brings heavy employment opportunities and the expanding tech giants like Amazon, which might require the office spaces. It is therefore worth investing in office spaces. Regardless of the fact that the commercial areas require a high capital in hand, these properties are accessible to investors with small ticket sizes through fractional ownership assets. You can explore these properties that earn lucrative returns.
Retail Real Estate
The retail sector is thought of as an evergreen sector, as the need for retail spaces continues as long as the businesses exist. But, the pandemic has put retail real estate to the test, which skewed the investing trends. Nonetheless, the retail sector is expected to rebound in 2021 and continue to grow after that due to the vaccine roll out and the easing restrictions.
Hyderabad hosts some of the prestigious global brands’ outlets like H&M in the fashion world. The domestic multi-brand luxury car showroom – Luxury Ride is planning to increase into South India by stepping into Hyderabad. The potential of retail real estate is justified by the increasing investments and preferences of the branded investors.
Retail Real Estate investments span over a broad range from a few lakhs to Crores. You can invest to earn a stake through online platforms like smergers and earn lucrative returns on these commercial properties.
The warehouse market has turned into an asset class investment with digitization and e-commerce spreading their wings, thus increasing the need for offline storage space. The pharma industry with the vaccine release is expected to shoot up the warehouse’s demand further as the city leads to vaccine manufacturing. According to Knight Frank India, these commercial properties are gaining prominence, and the city has witnessed a growth of 41% over the past three years.
Warehouses are commercial properties that require a heavy inflow of investment. Nevertheless, there are investing platforms that offer a share in these high performing assets through fractional ownership.
The data centers are the commercial property investments that have gained traction with the pandemic’s advent that caused a shift in the data processing and handling mechanisms. The digital change due to the pandemic has shot the requirement for data centers. The Hyderabad market holds Asia’s largest tier 4 data center, the high-tech infrastructure data center, which exhibits the city markets’ potential.
From the investment perspective, the data centers require an enormous capital investment. But the luring investment options are not worth losing a chance. Here comes the savior! Fractional ownership assets allow you to invest in these asset class investments and take part in transforming the economy into a digital economy.
To sum up, commercial properties in Hyderabad are performing reasonably well. The emerging IT hub is bolstering the demand for commercial investments like Office spaces, data centers. The city’s infrastructure development is also attracting asset class investments that are offering the investors opportunities to earn higher returns. Commercial real estate is a perpetual industry as it is the business motive that creates the investment opportunities, and the business is the driving wheel of the globe.
If you want to invest in such thriving properties, Assetmonk is here for you! Assetmonk is a real estate investing platform where you can invest in the properties listed online. From residential to commercial and co-living with a high expected IRR yield of up to 21%, a broad range of properties are available on our site. Visit today to know more!
Commercial Property Investment in Hyderabad FAQ's:
The commercial properties can be found by the traditional methods of hiring a channel partner who finds the properties and the best deals to invest in. Digital platforms like Assetmonk can do the work for you and find the best deals to invest in.
Yes. The Hyderabad markets have the potential to go further and beyond with affordable land and property prices. The markets have also exhibited stellar resilience to the falling trends during challenging times like pandemic, and this qualifies it as an excellent location to invest in.
The commercial property can be bought by directly pouring your investment or through fractional ownership, and you can invest a small amount and bag a share in the properties.
The retail stores, warehouses, data centers, and office spaces are investment options to invest in commercial properties.