Commercial real estate in India has picked up real fast over the last 5 years and has transformed the Indian architecture in a major way. Commercial Real Estate India as a trend setter
The peaks of commercial real estate in India
- Organized retail: With the increase in mass consumption, shifting trends in the pattern of consumption of luxury goods and purchasing power corporate houses have ventured into retail in a big way. Take the case of RPG Spencer’s largest presence in South India with FoodWorld, MusicWorld and Health and Glow. Apart from this there have been other major players like Birlas, Tatas and now Reliance is thinking on similar lines. This explains the mushrooming retail projects and shopping malls.
- Entertainment: The need for entertainment, fun and leisure has transformed the urban architecture with multiplexes, hotels and a commercial property India boom.
- Job scenario: India not only promises better workforce in terms of intellectual capital but also cheap labor. This has welcomed thousands of IT, telecomm and ITES Companies to set up offices here in India.
Why should investors be encouraged to invest in real estate?
- According to Grant Thomton, a leading international and audit firm, India ranks number one out of 30 countries having medium-sized business beating China and Europe. Surprised? Think about free market, liberalization and open FDI policies which have attracted some of the major brands, investors and realtors from abroad.
- India has more experience when it comes to lending and raising capital compared to China. Take a look at the rising boom of Bombay Stock Exchange and existence of major banks like ICICI and HDFC. These pointers have been a major encouragement to global players like Morgan Stanley which has invested $68 million in real estate India.
Conclusion
India has raised the bar in investment scene so far real estate is concerned. The country has immense scope of building infrastructure and increasing returns on investment by 50%. The yield on commercial real estate India have been larger than global real estate which makes this country such a popular destination in terms of real estate investment.
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