Source: Times of India ( )

India’s Commercial Real Estate industry has enabled the development of robust office infrastructure to support the growth of economic activity in the country, generate large-scale employment for blue and white collared workforce along with creating opportunities for real estate-focused startups.

Supply to hit new highs

As recession grips, major economies globally and India is the only shining light in an otherwise gloomy economic scenario, the country is expected to see a significant inflow of investments across sectors, including commercial real estate.

Options galore

Over the last decade, there has been a democratisation of commercial real estate in the country as companies of all sizes are able to occupy prime office properties across locations. This assumes significance as only top-tier companies were able to occupy Grade A offices in prime locations and smaller companies were left out due to the high entry barrier. With the proliferation of co-working spaces across the country, this barrier has been diluted and now companies of all strata are working together under one roof and availing similar services in a more cost-efficient manner.

Retail investors to have a bigger play in CRE

Two major developments which will soon transform the investor profile of commercial real estate are the launch of Real Estate Investment Trusts (REITs) and fractional ownership. These interventions are allowing retail investors to make low-ticket investments in the burgeoning commercial real estate sector and reap rich dividends. This is enabling a huge inflow of retail investors who were looking to invest in commercial properties but the high investment barrier acted as a deterrent.