As the vaccines are out and businesses across the world are making attempts to revive from the doldrums of the pandemic, the real estate sector is also set to regain its market strength. According to real estate experts, market commercial properties are expected to undergo a sudden change which will now be heading towards the completion of its major projects and targeting its audience in the coming time with effective and influencing marketing strategies. Moreover, the governments are making their best efforts to support the real estate sector in every possible way through different loans and funding. This post will pinpoint some effective trends in real estate and how the market will react to commercial properties in the coming time.
The role of Government
The demand for commercial properties is directly dependent on the economic growth of a country and hence, the government is making enough provisions in RERA and GST and is also providing enough solutions for attracting more and more FDIs in this sector. The urban development policies like smart cities and AMRUT are also expected to contribute in the development of real estate infrastructure. With funds which are readily available to be invested in major projects, especially for the IT sector, the government is also taking corrective measures to resume construction work for stalled projects in both commercial and residential segment.
The rise of Co-working space
This can prove to be the most exciting factor for people looking to invest in commercial properties. In the recent times, there has been noticed an increasing trend in co-working spaces, not only in Delhi NCR region but throughout the nation. Increasing number of startups and even the small businesses will look forward for cost effective measures to share their working places. Highly disrupted due to the pandemic, the budget constraints and other factors will push them towards this trend which will result in high demand of commercial buildings. Alimuddin Rafi Ahmed has seen a major growth in sales of its commercial properties in the recent time.
Increasing Investments in REITs
Real Estate Investment Trusts REITs is an ideal platform for investments in commercial properties without requiring huge capital and compulsion to buy an entire commercial building. These REITs perform much like a mutual fund where investments are pooled to buy an asset. Salman Akhbar ILD also noticed a major shift towards this investment type in the recent time and is hoping for a further increase in such investments which will eventually result in bringing commercial properties at their par. Some major cities like Mumbai, Bengaluru, Chennai and Delhi-NCR have shown promising notes in the recent times on this behalf. Investors prefer this kind of investment as it offers a good exposure towards commercial properties and help them to gain huge ROIs in short time span.
More FDIs to be incorporated in 2021
The real estate market has really undergone immense disruptions in the recent time due to demonetization, implementation of GST and then the Pandemic effect. Hopefully, in 2021, the market is expected to resurge and witness a sudden increase in FDIs which are a result of effective and alluring real estate regulations and framework acts. The Union budget 2021 had laid provisions and FDI limit is raised to 74% along with other amendments in insurance sector to allow foreign ownership. Production Linked Incentives PLI worth Rs. 1.97 trillion has been announced by the government for different sectors to regain their scale and size and boost job creations in their respective sectors and real estate will also benefit a lot with this fund allocation.
According to a survey report which was conducted recently, the real estate sector in India has attracted institutional investments during 2020 worth 5 billion dollars. A deeper analysis into such investments implies that the recovery has been narrow-based as compared to previous year but investments by large global funds even in the pandemic times show a positive impact on the real estate sector in this upcoming year 2021. Both commercial and residential projects in real estate sector are going to see an upsurge because of it. Flats/Apartments in Gurgaon are already witnessing good response from buyers and investors and relatively, the growing demand for investment options will open new opportunities for commercial properties as well.