Why Should You Invest In Commercial Property In 2024?
We’re going to talk about one of the greatest and most sustainable investment possibilities for 2024 today—the one that has no risk and offers profits that are guaranteed. The most profitable and environmentally friendly investment choice is commercial property, which is also one of India’s fastest-growing industries and one that offers investors substantial, guaranteed returns.
You may be asking yourself why I should limit my investments to real estate. We can invest in a variety of other sectors that yield higher returns. Some examples of these sectors include shares, mutual funds, bonds, fixed deposits, Public Provident Funds, NPS, Post Office Savings Schemes, unit-linked insurance plans, debt funds, and SCSS. However, how secure are these investment options? Are they able to last? Even with those that will take a while to mature, there is no guarantee of returns, and even when you do, the returns are meagre.
You must choose whether you are investing for profit or loss while making your choice. It’s similar to saving money for retirement because these programs only pay off if you invest for 20 or 30 years. After that, what happens? “It’s time to come,” declares God. These scams simply serve to enrich those running them and further impoverish you. Just consider market pricing and inflation. Your money will increase in value over the next twenty or thirty years, but because inflation will increase throughout that time, its worth may decrease or remain unchanged. It is therefore not inflation-proof.
Real estate is divided into a number of divisions, including residential, commercial property, retail, studio flats, etc. However, since we are discussing money cultivation, we will limit our discussion to commercial property.
- Why Invest in Commercial Property in 2024?
- Top Reasons to Invest in Commercial property in 2024
- Why Turn to Commercial Property Investment?
Why Invest in Commercial Property in 2024?
It then becomes reasonable to ask: Why should you invest in commercial property? The future of real estate looks promising in 2024. The predicted increase in the economy, government initiatives, and infrastructure development are expected to sustain the strong growth momentum of the real estate sector.
The demand for office space and retail stores in particular has increased significantly over the last few months, and this trend is expected to continue as an increasing number of industries drive up demand for commercial property in India.
India’s real estate sector grew significantly in 2023 because of the confidence of buyers and investors. The retail space market was particularly successful, with leasing rising by 46% in the top 8 cities over the prior year. The robustness of the industry, investor confidence, brand expansion, new market entrants, and rising consumer spending are some of the factors driving this growth.
According to a collaborative analysis from Knight Frank and the National Real Estate Development Council (NAREDCO), India’s real estate market would be worth a significant USD 5.8 trillion by 2047. It is anticipated that this growth will propel the Indian economy forward by meeting the changing demands of different asset classes, such as commercial property, industrial, and residential projects. As a result, the most searched-for real estate topic on Google is “commercial property for sale.”
A bright future for 2024 is made possible by the convergence of the residential and commercial property sectors and the growth of Tier 2 cities. It is anticipated that the industry will continue to grow and innovate, opening the door to a vibrant and successful future.
Top Reasons to Invest in Commercial property in 2024
India’s commercial property market is expanding quickly for a number of reasons. Following the epidemic, office practices changed, and most companies now encourage their staff to work from home or return in a hybrid arrangement. India is a great destination for commercial property investment since, interestingly, a 2023 analysis by CBRE revealed that rentals in leading Indian cities are roughly 50% cheaper than those in rival Asian markets and 60% less than those in European markets.
Why Turn to Commercial Property Investment?
1. Booming Tech Industry:
Noida is known for being an undisputed centre for IT. The need for commercial property is increasing, particularly in tech parks and IT hubs, as a result of the proliferation of international IT giants and the growing startup environment. An investor can choose from a range of choices, such as rental property or commercial property for leases, to diversify their investment portfolio. As a matter of fact, investing in real estate enables you to take advantage of this constantly growing industry and establish a solid, long-term tenant base.
2. Global Connectivity:
According to a recent report by CBRE, between 2023 and 2025, GCC companies are expected to lease office space in India totaling between 60 and 62 million square feet (msf). The future Jewar International Airport in Noida will be a significant entry point for tourists from abroad. The city’s commercial property sector benefits from increasing worldwide connectivity thanks to direct flights to important global destinations. The increased demand for commercial property is attributed to the accessibility of this space, which attracts global firms seeking to establish or grow their presence in India.
3. Thriving Start-Up Ecosystem:
A thriving and dynamic startup ecosystem can be found in Noida. The need for office space and flexible working conditions is only going to increase as new companies open and old ones develop. By meeting these businesses’ needs, you may place your commercial property investment at the cutting edge of entrepreneurship and innovation. It also gives them a solid area to set up a consistent cash flow, depending on the range of property types that a landlord or tenant may choose from.
4. Infrastructure Development:
In recent times, the city has experienced notable advancements in its infrastructure, as ongoing projects aim to improve accessibility and communication. The development of business centres, the rise of metropolises, and better road networks all add to Noida’s commercial property allure for both active and passive income. Moreover, real estate values might increase significantly in communities where infrastructural initiatives are planned.
5. Stable Real Estate Market:
Noida’s real estate market has shown resilience in the face of economic ups and downs, making it a solid choice for investors. The city has a strong track record when it comes to property appreciation, which makes it a dependable option for both long-term tenants and investors. For those wishing to diversify their investment portfolios with a better rental income, investing in commercial property in Noida offers stability and the possibility of lucrative returns.
6. Educational Institutions and Talent Pool:
According to a 2023 CBRE research, Noida has around 70,000–80,000 new talent pools, making it an excellent location for GCC companies to construct office spaces and commercial property projects. Noida has a thriving educational environment that produces a workforce that is both diversified and skilled. The city attracts businesses, particularly those in the technology industry, because it has access to a skilled labour pool. Investment opportunities in commercial property satisfy the demands of businesses looking for close access to recognized academic institutions and a trained workforce combined with efficient property management.
7. Cultural and Lifestyle Appeal:
Noida attracts professionals and businesses because of its global culture, nice environment, and high standard of living. Beyond its business attraction, the city adds to the demand for commercial property in general. Investing in commercial property enables you to match the lifestyle choices of companies and workers looking for a lively and dynamic workplace.
Conclusion
In India, one of the sectors with the quickest growth is real estate. The demand for commercial property for sale has been rising quickly due to India’s developing economy and recent industrialization, and the real estate industry as a whole is on the verge of extraordinary expansion. Putting money into real estate right now, particularly commercial property, will increase your return on investment.
For information on why you should invest in commercial property in 2024, visit us at www.boardwalkindia.com.