Commercial Real Estate: The Ultimate Investment Asset for Highest Passive Income

Despite increasing mortgage and housing rates, India’s residential market is predicted to maintain demand pace this year, with sales likely to exceed the demand that was before the pandemic, at a peak of 2.62 lakh units, according to industry stakeholders. After enduring four consecutive interruptions in the shape of demonetization, RERA, GST, and COVID-19 in the last six years, industry analysts believe the housing market is undergoing fundamental changes and is now at the commencement of a long-term implicit. The FPCE, a homebuyers’ organization, attributes the better buying sentiment to the Real Estate Regulatory Authority (RERA) established under the Real Estate (Regulation and Development) Act of 2016. All major publicly traded real estate developers reported record-breaking bookings in the previous fiscal year and have stated that their sales statistics in FY ’23 would be much better. However, if the entire market is considered, rather than just listed businesses, the RBI’s move to increase the interest rate by a total of…

The pandemic had a significant negative impact on the commercial real estate sector. Public gatherings were outlawed to slow the spread of the virus, which put a stop to corporate demands for office space. Numerous developments are coming in from all over the world as things are improving every day. A solid recovery is taking place in the commercial real estate market, especially in the small- and medium-sized office space segment. Since the beginning of this year, both the volume of direct transactions and lease agreements have significantly increased. Deals are being secured across a broad spectrum, with the majority involving office spaces between 10,000 and 50,000 square feet. The 10,000–50,000 square foot commercial office space is starting to see an increase in transactions, according to Real Estate Investment Trusts (REITs) and many other well-known builders with a sizable portfolio. Surprisingly, additional transactions that go above and beyond the upper limit are also being recorded. What does that imply? Due…

The recent imposition of an 18% GST on residential rents across India is anticipated to have a significant impact on the rental housing industry in India. The recent imposition of an 18% GST on residential rents across India is anticipated to have a significant impact on the rental housing industry in India. The Finance Ministry’s revenue department has implemented an 18% GST on housing rent across the country. This decision was made recently at the 47th GST council meeting. It should be noted that the service tax was first implemented in 2007 solely for commercial real estate rentals. When the GST was implemented in 2017, home ownership was exempt. Previously, GST was not levied if a residential property was rented to anyone (whether registered or unregistered under GST). Do not miss An Easy GST Guide For Homebuyers In 2022. Residences rented to registrants will be levied at 18% GST under the new system. Furthermore, the lessee must pay taxes, while…

According to a joint report by real estate association CREDAI and domain experts Colliers and Liases Foras, a resurgence in demand for residential real estate has resulted in an average 5% increase in prices across the top eight cities — Delhi-NCR, Mumbai, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad — while registering a slight decrease in unsold stocks during Q2 of 2022 (April-June).   Residential property prices, which have exceeded pre-pandemic levels, have been growing due to rising demand and rising building material prices. Also, read Mumbai, Bengaluru, and Hyderabad: Cities leading India’s residential real estate recovery in 2022. The sales surge that began late last year continued in Q2 2022, fueled by pent-up demand and excellent prices. To offset the impact of inflation, the central bank (RBI) continues to raise repo rates, and banks are projected to raise lending interest rates, particularly those on house loans. Rising millennial homeownership, fueled by more discretionary income and a propensity to move…

Per a survey, Bengaluru’s home costs reached a three-year high in the second quarter, up four percent year on year. Unsold properties were purchased at the fastest rate among seven other big cities, showing a rebound in demand. The square foot price of residential housing in Bengaluru climbed by 4% year on year to 7,848 in the April to June quarter. This is less than the 10% growth in Delhi and the national capital area, but greater than the 1% increase in Chennai and the Mumbai Metropolitan Region (MMR). The research titled ‘Housing Price-Tracker 2022′ by Credai, or the Confederation of Real Estate Developers’ Associations of India, Colliers India, and Liaise Foras examines real estate market trends in eight key cities: Bengaluru, Delhi-NCR, MMR, Chennai, Kolkata, Hyderabad, Pune, and Ahmedabad. Housing prices in Bengaluru recovered to pre-pandemic levels in the second quarter, climbing 4%, the most in three years. Do not miss Mumbai, Bengaluru, and Hyderabad: Cities leading India’s residential real…

In India, real estate investment has grown at an incredible rate in recent years. While property sales dropped significantly during the pandemic, they increased in the previous year. We reviewed the prospects for real estate investment in the next years, as well as the sector’s success during the last 5-10 years.   Around 80,000 units were sold in the fourth quarter, representing a nearly 121 percent year-on-year growth. In H1 2022, we will have around 1.50 lakh units, a 72 percent increase. These are extraordinarily resilient figures when compared to the black swan incidents that occur every 2-3 years. According to the report, the investment sector has returned, and this year may be the strongest yet, for commercial and residential real estate. In terms of marketplaces, even in big cities such as NCR, Bengaluru, and Mumbai, various pockets do better than others. For example, in the NCR, while Delhi does not provide excellent returns, Gurgaon does, and even in Gurgaon,…

Big Chinese property developers, such as Evergrande, are suffering a huge cash shortage, weighing down the industry as well as housing demand and prices.   The latest figures for July indicated symptoms of a downturn in China’s economy. Covid-19 instances have been increasing, and the government has enforced lockdowns in several economic hubs, including Shanghai and Wuhan, as part of its ‘zero Covid’ policy. This has resulted in a decrease in both demand and output. The country just avoided a recession in the second quarter, rising by only 0.4%. However, one of the most serious issues confronting China is the real estate crisis. Big property developers are suffering a major cash shortage, pulling down the sector as well as house prices and demand. Do not miss India – Another Asian Refuge For The Investors Running From China Real Estate Debt Crisis. What exactly is China’s real estate crisis? The real estate industry is one of the most important industries in the…