When you start reckoning great investment options, real estate is one among them. Ongoing passive income is ensured when the value of your piece of land, flat, or home increases over time. However, please be sure where to invest. Yes, presently, the commercial sector is more considered and expected to yield a higher return on investment than the residential flats. The higher returns attract the investors to invest more in commercial segments. Technology is a key factor for such a transformation and has set a milestone in the real industry sector. We can see many IT parks have occupied high rentals to keep their employees in a sophisticated environment.
The incredible growth in the commercial segment is expected to witness a surge in the future. The “Real Estate Investment Trusts” (REITs) have come up with new opportunities and provided substantial liquidity to the commercial market creating a constant demand for it. As a result, the market sees an increased rental yield and capital appreciation of the commercial properties that subsequently attracted buyers towards it. In the past three years, the residential segment has seen a slump in the return on investments which alerted even NRIs to invest in the commercial segments. Investing in residential flats is considered of having higher risks as per the current scenario according to a report. Having a better appreciation and rental yield growth over the residential phase, we can see the commercial realty market continuously shows a robust demand. Good office space in a well-situated place is bringing more income to the renters.
Mushroomed e-commerce, demand for quality warehouses and workplaces are witnessing the growth of the commercial real estate market. Besides, improved accountability and transparency are also being the prime factors for the commercial realty segment’s success. Moreover, the Indian retail estate scenario is showing a revolution and becoming more organized. Many developers like GP Homes, have been developing world-class infrastructures in such of a way of attracting even foreign brands to invest in the Indian market. Prevailing shopping malls are exemplifying our country’s retail sector growth. These shopping destinations not only stop you from shopping and also rejuvenate you.
On the whole, investments in commercial properties have been a wise choice to see a bright future for investors. The industry is happy in welcoming such a transformation. Though you have a residential flat, if you can buy a commercial space, it would bring a sufficient double income to fulfil your needs for your entire life.