The commercial property segment in the Indian real estate sector is on an upward trend offering optimistic prospects to buyers as well as investors. Commercial properties span a wide range of prices and locations, but they also offer a great deal more choice in terms of asset type. The sector drove high on positive outlook with seamless performance in the last quarter and is predicted to rise in the coming years. The Return of Investment is much higher in the commercial segment as compared to residential sector thus attracting investors. Technology has played a major role transforming the sector and has set a benchmark in the commercial realty sector. Driven by blockbuster deals and global interest, office realty is booming. Commercial real estate has seen this upward trend from blockbuster transactions, a historic high in office space leasing, and most significantly, the launch of the country’s first real estate investment trust (REIT) in March. The increase in urbanization, rapid migration and the rise in population of the youth in metros have lifted the demand for the commercial realty.

In Delhi-NCR, Gurugram has become a major investment destination for NRIs looking at investing in commercial real estate. Ravish Kapoor, Managing Director, Elan Group in a Hindustan Times interview said, “The commercial segment is growing immensely and is expected to witness a surge in the near future as well. The introduction of REITs has opened up new avenues and provided much-needed liquidity to the commercial market creating a stable demand for it. Subsequently, the rental yields and capital appreciation of the commercial properties have increased and are attracting the buyers towards it”. Driven by MNCs and tech companies in India, the demand for premium office spaces is bound to expand. In fact, the Elan group has launched several commercial properties in Gurgaon.

Elan_Mercado-Elan_Epic

ELAN MERCADO is a perfect blend of premium High Street Retail and Serviced Apartments. Strategically located on National Highway 8, Sector-80, Gurgaon, it features 1BHK flats. The residents can avail the benefits of numerous amenities offered within the vicinity, like LCD TV with cable connection, telephone connection, R.O. water purification, broadband internet access, swimming pool, video door phone, children’s play area, rain water harvesting, club house and many more. The location of the Mercado is appropriate as many hospitals, play schools, petrol pumps, bus stations, banks, restaurants, parks and ATMs are at a close proximity.

Elan’s commercial project in association with UHA, London, ELAN EPIC Sector 70 Gurgaon is a unique, concept with central water body and lavish green area and one-of-its-kind project that offers a heady mix of high-end retail shops, world-class commercial space , Multiplex on 3rd & 4th Floor, Gaming Zone, Fun Zone, kids entertainment zone, Terraces Restaurant. Enjoy an awesome location with exclusive two-side access, Elan Commercial has set a new precedent of affluence and exuberance in the city of Gurugram.

The Indian retail real estate scenario is witnessing a revolution and is becoming more organized with various government interventions such as relaxation of FDI policy for single brand retail trading. According to Amir Husain, President – Sales and Marketing Orris Infrastructure Pvt Ltd, “India’s retail sector has grown enormously to sophisticated shopping malls. These are not only a shopping destination but have evolved into a place to meet, rejuvenate and entertain. Hindsight, it can be said that the malls have not only changed the lifestyle of customers in the country and has also helped the retail sector to become more organized”. The Indian retail market is set to welcome more global retail majors. Various developers have been developing world class infrastructures for the brands like them and are attracting foreign brands to invest in Indian market.

Orris, a renowned real estate developer, has launched a beautiful commercial project located at sector 89 in Gurgaon. With its modern and trendy European appeal, ORRIS MARKET CITY brings you a world of choices in hospitality, service residences and retail. Orris Market City has specialty outlets, delis, cafes, iconic restaurants, health clubs, beauty clinics and much more. A mixed use of high street retail and studio condominium complex this project is poised to stand tall amidst the skyline of Sector-89, New Gurgaon. A range of high-end amenities is available encompassing a club house, a 24X7 security system, a power backup system, a car parking area, a banquet hall, an elevator and a shopping mall. The neighbourhood has all the required social infrastructure like educational institutions, hospitals and commercial complexes.

Spaze Tristaar & Orris Market CIty

The future of commercial segment looks promising with the rising demand for office spaces, particularly grade A offices. The largest occupier of office space during the year continued to be the IT/ITes, banking, engineering, IT parks, logistics centers, and manufacturing sectors. The rising lease rentals and high absorption rates are reason behind the escalating demand for such spaces in Delhi-NCR. Grade A office space in a well-located place is generating great returns. Backed by favorable policy environment and expanding workforce, office space segment is expected to witness healthy leasing momentum in coming years. Other prominent commercial properties in Gurgaon are mentioned below.

SPAZE TRISTAAR, sector 92, Guragon is one such retail cum commercial center that has been specifically designed to provide best in class shopping experience. The project features well integrated open-air bazaars with a unique triangular shape that offers maximum visibility. With large frontage of 650 ft. (appx.), Spaze Tristaar grand mart offers a Galleria like shopping experience. It has been ergonomically designed to include spacious lobbies. With abundance of natural light and ample car parking space, the commercial establishment is certainly one of the most sought-after shopping destinations in the Gurgaon and NCR area. Tristaar is well connected to 135 Mtr. Multi utility Corridor connecting Dwarka & Manesar. This High Street Retail and Entertainment Zone is located in the vicinity of number of premium residential projects thus ensuring an excellent volume of prospective customers.

Conceived and designed by the world- renowned Singapore based DP Architects AIPL JOY SQUARE is an upcoming mixed- use commercial development. Strategically located in Sector 63A, off Golf Course Extension Road AIPL JOY SQUARE consists of Retail Shops, Food Courts Service/Studio apartments. Spread over approx. 3-acre land parcel, AIPL Joy Square is a unique 4 side open site with visibility & access from all four sides. AIPL joy square Gurgaon is going to be an iconic development. Joy Square will consist of premium retail shops with food court & serviced apartments. The project will have ample car park, high speed escalators & elevators, modern design & construction.

The future of commercial real estate seems bright, according to Deepak Parekh, the chairman of Housing Development Finance Corp (HDFC).”Commercial real estate is booming … particularly for the IT back-office sector and one never sees a slowdown in this,” opines Parekh in an interview with CNBC-TV18. According to Parekh, there are buyers like sovereign wealth funds and private equity funds who are tempted to invest in office realty. “There are buyers like private equity funds, there are buyers like the Blackstone, the Brook-field of the world who are buying and there are many more buyers who are coming in. They are buying it for yield,” he said. In conclusion, investing in commercial properties has emerged as the more judicious route in India and promises a brighter future ahead for investors, brokers and landlords. Policy reforms in the realty sector, the concept of shared economy has given rise to new asset classes such as co-living and co-working spaces. Also, technology driven businesses resulting in the increased interest in data centers have together made times exciting, both for occupiers and investors. The industry is upbeat with the change and hopes to make the most of this trend. The commercial segment is undeniably poised to become a game changer of the real estate sector.

 

Sources:

  • https://www.hindustantimes.com/real-estate/looking-to-invest-residential-flats-may-not-be-your-best-bet/story-akdEw0C9YRPnqZLsV7b2nJ.html
  • https://www.cnbctv18.com/real-estate/commercial-real-estate-market-is-booming-in-india-says-hdfcs-deepak-parekh-4287401.htm
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