Commercial property will be among India’s strongest economic engines going forward. Any benefit the government extends to this sector will be felt manifold across the economy. While the Budget may have been a good bag for the sector, one hopes that the government will announce further stimulus measures in the near future. The need to get good returns in the short and long term has made the investors with real estate knowhow to divert their attention towards commercial real estate, which has become more attractive now and more so post the budget proposals.
With REIT, the commercial space has the upper hand; the likely trend will be further liquidity infusion in commercial property, and developers will come up with more projects in this segment.
On that note, Mr. Hirav Shah, the Astro Strategist cum Real Estate Astrologer, who has been working closely with many of the leading Developers, Infrastructure, and Real Estate giants of India, USA, UAE etc as a Real Estate Strategist, Real Estate Investment Advisor, Property Investment Advisor says Commercial Real estate Business is all about timing of sale, purchase and construction of buildings.
Meanwhile, Hirav Shah’s Top 5 picks for cities to invest in India- Commercial Space are Bangalore, Mumbai, Ahmedabad, Hyderabad & Delhi.
And, Real Estate Astrologer Hirav Shah Pens Down The Favourable Periods To Invest & Factors/Reasons For The Same Below.
Favourable Time Period- From 15 March, 2021 to 15 June, 2021
There is always a thirst for commercial properties in Bangalore and investment at the right period makes commercial property investment a reliable choice.
Bangalore commercial real estate office market continues to attract large occupiers to sign up under construction and built to suit spaces even as the pandemic continues, a move that reflects the underlying resilience of the market.
The city contributed around 33% or about 6.5mn sft of the total office space in the country till October and over 9 mn sft precommitment for the future (2021 & 2022), said leading property consultants. The city also managed to retain its lead as the largest office leasing market as marque MNCs have leased space including Amazon (2.5 mn sft), Apple (2 lakh sq ft) Siemens Technology and Services (7.27 lakh sq ft), Accenture (800,000 sq ft) and Google (1.3 mn sft).
While most technology firms continue to have mass WFH, leasing continues to be driven by IT/ITeS, followed by manufacturing/industrial and e-commerce sectors.
The Covid-19 outbreak had delayed commercial real estate deals across India due to travel restrictions and uncertain economic outlook.However, the leasing momentum continues to strengthen with a number of new Request For Proposals (RFPs) releasing in the market .
Builders and property consultants are witnessing large leasing deals upward of 2,50,000 sq ft or marquee CBD deals back in the market.
Mid-sized leasing of 1 lakh to 2.5 lakh sq. ft. are also being considered but with caution.
Bengaluru is also likely to witness an addition of 1 mn sq. ft. of office space in the next quarter of which 70% is pre-committed.
Separately, the city also witnessed continued investor interest and the recent land deal by Godrej Fund Management and active scouting of office assets by Blackstone, Brookfield and Embassy REIT.
Overall the country’s office market witnessed a net absorption of 5.4 million sq ft in Q3 2020, an increase of 64% versus Q2 2020, led by Bengaluru and Hyderabad.
Favourable Time Period- From 25 March, 2021 to 20 May, 2021.
Timing is everything. For investors, this perfect time period will also be assisted by the reduction of stamp duty, discounted prices, low interest rates and weak rupee.
2021 onwards, the Maharashtra government has levied three per cent stamp duty on residential properties until March 31, 2021.
The change in stamp duty will result in huge savings for buyers. Commercial real estate segments where investments can be made include office spaces, IT Parks, data centres, warehousing and logistic parks. They are expected to experience a constant rise in demand in the long run.
All in all, the reduction of stamp duty, discounted prices, low interest rates, weak rupee amongst others have cumulatively resulted in a great recovery in property registrations in Maharashtra’s real estate market – Mumbai is the fourth highest in terms of value and volume since April 2013.
Currently, the sale volumes in Mumbai are 30% higher than pre-covid levels and with MNC’s eyeing India as a growing market and investing in office spaces due to factors like cheap labour, discounted price and welcoming regulatory regime is only expected to add to the existing momentum.
To sum it up, the financial capital of the country is a very promising real-estate investment market every investor should consider, even more so now considering the long term horizons and opportunities it brings to the table,” he concluded.
Favourable Time Period- From 18 April, 2021 to 30 June, 2021.
Due to various planetary combinations investments in commercial properties can reap good dividends in the future.
Growth of industries, particularly in the sectors of Information Technology (IT) and Information Technology Enabled Services (ITES) amongst other factors, has resulted in the emergence of robust real estate development in Ahmedabad over past few years. Increased connectivity avenues, including air and road transport networks, affordability of properties, growth potential of the towns in terms of further industrialisation and higher rate of returns on rentals are some of the other factors leading to growth of real estate in Ahmedabad.
One of the major factors for real estate growth is the initiative undertaken by our Prime Minister in pushing urban development into the far corners of India through the Smart City mission.
Affordability and high rate of rental returns is another set of factors that has led investors into pumping their money in commercial segments in real estate markets of the city.
Favourable Time Period- From 25 May, 2021 to 10 August, 2021.
Commercial property investors can benefit immensely while investing in this period. The timing factor is also equally responsible as other factors.
High-tech city Hyderabad is the fastest-growing megacity with the highest ROI in the Real Estate Industry, fuelling the desired sustainability in spite of adverse times in recent past. As a preferred Real Estate Investment destination, Hyderabad (Telangana State Capital) is constantly attracting demand across globe and ages. Global Industry has been dynamic but the city has been giving value to every nature of Investor. Investors of Commercial Space have seen the value with time and it is expected to grow in double digit percentages, year after year. This kind of Demand has put the city on the global map attracting more and more. Various factors that make Hyderabad a Global Preferred destinations are, It’s geographical presence, Diverse cosmopolitan culture, State of Art Civil and Social Infrastructure, Connectivity in Domestics and International transits and Strong Local Government, to mention a few. Builders, Realtors, Infrastructure companies find it most convenient to have all prospects under one roof in an Exhibition.
Favourable Time Period- From 5th March, 2021 to 10 May, 2021.
While investment is an opportunity it has its own set of risks involved. Hence, one needs to take a calculated step and perform due diligence before investing. Basically, the period has to be perfect and favourable & in the above mentioned favourable period, commercial property investors are likely to yield much higher rental returns
Meanwhile, in a major boost for the real estate sector, the Delhi government on February 5 decided to slash circle rates for residential, commercial and industrial properties in Delhi by 20 percent flat until September 30, 2021.
This will be a big relief for people willing to buy properties in the national capital.
In Delhi -NCR there is an increasing demand for office space which large corporates are acquiring as the current economic scenario is an opportunity to conclude the transaction at a discounted price for bulk office spaces. Though mid-size companies and the MSME sector are downsizing their office space requirement and workforce, there is an ongoing demand for small and midsize office space as well.
India is becoming a hub for large office space requirements. Multinational companies are eyeing India as a hub for Data Centre Offices, especially in cities like Delhi-NCR . Around 10 million sq.ft is likely to be occupied by the Data Centres in the next 24-36 months. And, finally, Real Estate Investment Trust (REIT) is gaining momentum in India after the first IPO of Embassy Office Park REIT, followed by Mindspace Business Park REIT. Corporate giant Tata Realty & Infrastructure (TRIL) is planning to list its Real Estate Investment Trust (REIT) with around 20 million sq ft of commercial assets in the next couple of years.
The other segments of commercial real estate like logistic parks, warehousing, retail shops and showrooms, and mall properties have their markets to boom, like real soon in Delhi . India, being one of the preferred destinations by multinational companies, has tremendous growth potential in warehousing and logistics parks in the extended industrial belt and land banks of Delhi. There is a rising demand in the industrial warehousing and logistic parks segment for the next 36 months. Some of the developers and owners of warehousing segments are offering lucrative pre-leased deals for investors to earn a return on investment of around 8-10% per annum.
While rental yields have remained intact, the fall in interest rate on deposits is making them more attractive. The difference between rental yields (3 percent) and interest rates (7 per cent) has become very narrow. Even with a marginal appreciation of 3-4 per cent, property appears attractive. Moreover, tax benefits on home loan interest and principal bring down the cost of a loan below 5 per cent for people in higher-income tax brackets. While end-users shouldn’t try to time the real estate market, property prices are at their lowest best. Buying now equals buying at the lowest possible price.
Real Estate Astrologer Hirav Shah concludes by saying, Real Estate’s growth mainly in commercial space is happening in some cities of India and that too exponentially !!
Before making any massive action, it’s IMPORTANT TO KNOW THE DESTINATION and the key is Real Estate ASTROLOGY.
ASTROLOGY is the only way, by which you get to know in advance before making any strategies for the future