Commercial real estate in india is giving better ROI
According to the report of ET Market Global Commercial real estate in India will give the best Return of investments, However the residential part may feel the tweak. Real estate has been under the pressure from last 10 years. The situation has come back to pass that margin of developers as well as investors compressed because of lack of interest and rising prices.
Associate Director of kotak realty Fund Mr. Raj shah said Demand and supply of both situations looked good till 2012. Afterwards, a lot of supply of capital led to product oversupply, which lead to building a lot of inventories around year 2015.
He said still we have the inventories hanged in most of the cities. Now, on demand side, investors have almost disappeared as end users are driving the market. 80% of real estate is residential in India. From investors view, the return has come down harsh fully over the years on residential real estate. And on the other side developers says basic gaps have softened due to increasing cost in terms of constructions, approvals & regulatory compliance, among others.
Shah advised that investment in residential properties is avoidable whereas other asset classes in the sector like office spaces are going well. Not much capital follow this type of asset class, which also has limited supply. Commercial real estate in India are giving better return in today’s date. The submits are better than residential places.
Sunil Mehta, patner-risk assurance service, PWC, said that the commercial real estate in India was in the spotlight as there are most of the foreign money investors chased assets like co-working space for investment perspective.
Mr. Akash puri Director of international India Southbey’s international realty said “ our clients are looking for residential investment overseas. Demand depends on investors requirement.
