For the last few decades, India has been a hot-spot amidst the Non-Resident Indians (NRIs) and High Net worth Individuals (HNIs) for investment in realty. And the graph is improving year by year as the rate of migration grows in the other countries. As more and more residents of India are converting into NRIs, the Indian realty is getting benefitted in terms of amount of investment. Apart from the residential projects, NRIs and HNIs are also showing interest in investing in commercial properties to dig out a big financial profit.
On the other hand, a confirmation nod has also given by the private bankers and the wealth management firms in favour of their clients active involvement in investing in commercial properties.
Here are the five reasons why investing in commercial office space in India is a good deal for them –
- High Rental Income
Pune, Gurgaon, and Hyderabad are going to be the prime location for investing in commercial realty as the time to come will bring a good hike of 5-10 percent in rental rates. With the advent of multinational companies to have active space in India, Grade-A offices are most likely to face demand-supply problem in the next three years.
- Capital Value Appreciation
IT parks in Mumbai cover 76 percent of the commercial space. The sector is believed to be a promising one when it comes to the stability, secure income, capital appreciation, great tenants, lease and longer tenures. Cities adjacent to Mumbai – Thane and Navi Mumbai – are likely to become the most preferred destination for office spaces in next few years as they embrace more IT parks around it. Approximately 1.2 million sq.ft. of absorption rate is estimated in these cities.
- Flattering Policies
Skill India, Make in India, relaxed FDI (Foreign Direct Investment) norms, GST (Goods and Service Tax) and other such policies are the key stimuli to the commercial office space investment. Not to mention, in the coming five-ten years, the Indian economy is all set to take a drastic turn. Office spaces in Pune, Mumbai, Bengaluru, Chennai, and Hyderabad will remain in high demand at a whopping rate.
4. More than 50 Startups Every Year
With availability and invention of new technologies, over 50 tremendous startups are going to launch in the year 2018. Surely, the following years will, too, have big opportunities for the entrepreneurs and the business people and thus, the requirement for the office space in India will rise with pace.
- Long Term Requirement
Manufacturing and Logistics sectors most likely to spread across Indian market in next three years. More than 80 percent of the Indian companies will be hiring people in bulk and thus, increase the demand for office space. Besides, BPO (Business Process Outsourcing) and IT firms have been the long-time players of the evolving commerce of India.