Gone are the days when people love to invest in the residential real estate market to strengthen their future as well as to garner a high return on investments. But with changing real estate market, today many other new avenues has entered in the market that is grabbing the investors eyes as well as are also offering better profits than the residential property. These new segments have mainly emerged in the commercial sector and there are few in the rental category too. These include warehouses, coworking spaces, coliving, and Student Housing. Let’s discuss these new investment avenues in details:
According to the latest survey, the coworking office space market is expected to reach 7-9 million sqft. by 2020. On the other hand, with newer emerging areas, the market is expected to grow more at a faster pace in India. Also, the increasing commercial property price is another reason that is leading to the growth of coworking spaces in India.
Today, most of the startups and small companies prefer to invest in co-working spaces rather than conventional office spaces due to lower rentals. Thereby, savings on operational costs and a more flexible work environment. A company can save as much as 30% on the operational cost such as IT infrastructure, fitments, housekeeping, broadband connectivity, etc. Cities like Bengaluru, Chennai, NCR, and Pune have witnessed a huge jump in the number of coworking spaces in the last few years.
Due to all these advantages, many HNIs, and NRIs love to invest in this real estate category as it provides a much higher return on Investment. Some of the leading coworking space in India is Wework, Regus, Cowrks, etc.
Another avenue which is emerging as a favourable investment option is Student Housing. Rapid development in India’s education sector has increased the demand for student housing. Although, the concept is in the nascent stage it has the potential to go far more above in the realty market of India.
The latest report has also revealed that top 10 student housing service providers are today collectively operating slightly over 75,000 beds with plans to touch nearly 2 lakh by 2020. The reason behind this is the movement of students from all over the world to India to pursue higher education, increasing demand and fueling hostel charges and PG fees. These housing units vary from affordable to luxury units as well as are also equipped with the latest technologies and at the same time also come with home-like feeling with thematic, fun and aesthetic rooms.
Due to their growing demand, investing in student housing is a fruitful decision that helps an investor to earn profits with ROIs too.
Leading student housing service provider in India is PLACIO, Campus Student Communities, Housr, etc.
While student housing focuses on sharing apartments for students; coliving mainly emphasizes on the rental sharing residential units for the tenants and professionals. The concept of coliving mainly involves sharing of common areas like kitchen, balconies, etc. by the tenants to experience economic rent. Bangalore, Pune, and NCR markets are witnessing an increase in the trend of coliving space.
At the same time, investing in coliving spaces also offer an investor more income from a single space only.
In recent years, this segment has gained the attraction of many small as well as big investors. They are high rental yielding assets that offer a great cap rate of 150 to 200 bps as compared to other commercial categories. Many small companies need such spaces to store their products or for the packaging of items or to maintain their logistics supply.
So, try these new investment avenues and earn great profits along with higher returns.