Commercial Real Estate Q1 and Q2 Growth and Trends

The need for acceptable workplaces, freehold businesses, residential buildings, and novel ideas that will maximize investment profits will all increase in 2022.

Share on facebook
Share on twitter
Share on linkedin
Commercial Real Estate Q1 and Q2 Growth and Trends

Residential and commercial real estate in India had a stunning rise in 2021. After the nationwide lockdown, demand for residential flats and plots increased, driving up property prices as well as prices per square foot. The market was already gaining momentum. The corporate world has started to indicate interest in extending operations, in addition to commercial sectors that serve people’s daily or weekly needs, as a result of connectivity improvements and anticipated economic development.

This year, there could be more money invested in commercial real estate. The need for acceptable workplaces, freehold businesses, residential buildings, and novel ideas that will maximize investment profits will all increase in 2022. According to an Outlook Report, the residential and commercial real estate market in the nation will have a more stable environment in 2022 as opposed to the instability of 2021 brought on by the second wave of Covid-19.

It’s difficult to accept that 2021 is already finished. However, here we are, and it’s safe to say that this has been a difficult year for the real estate industry. Here are several themes that real estate investors should bear in mind as 2022 approaches.

Analyzing the anticipated real estate trends for 2022

Companies have adopted the hybrid work technique as they recover from the epidemic and learn to keep up with ongoing developments. The beginning of new leases and the inauguration of new offices give us hope that by the end of 2022, the real estate sector will regain its footing.

The rental business will increase by January 2022

Companies are renewing contracts and expanding commercial office leasing spaces before standardizing the complete office system. For the same reason, real estate leasing activity is expected to soar starting in January 2022.

Demand for co-working spaces is increasing

Office closures significantly increased in 2020, and there was a quick global transition to ubiquitous remote work. This pattern persisted in 2021, but as the vaccinations spread, people began to gradually return to their jobs. The ultimate litmus test for workplace digital change has been this epidemic. To enable workers to work from home, businesses have to make investments in digital capabilities. To guarantee a balance between employee well-being and corporate profitability, businesses are looking into innovative working practices while putting workplace flexibility at the forefront. The expansion of a hybrid workforce in a range of workplace alternatives, including flexible offices, has been the most obvious change

Flexible workspace operators anticipate growing their portfolios over the next two to three years as a result of the need for worker flexibility and portfolio re-optimization. The market for adapt-to-suit workplaces will advance due to several key factors, including hub-and-space models, increased financial gains, growth in the number of strategic partners, acquisitions, demand-driven expansions, and a focus on technology, health, and safety.

Another way to make money is through SCO Shop-cum-Office space

The State Government’s new planned colony policy has approved the novel idea of a Shop-cum-Office (SCO) plot. Developers may sell plots where customers can build up to four stories and utilize them for offices or retail under the plan put up by the Haryana government. Due to these regulations, a new age of commercial SCO plots is emerging. The SCO markets have been a tremendous success, with early investors’ cash rapidly growing by several times. A prudent investor can profit from consistent cash flows, longer leases, and higher income, to name a few.

The deciding elements for knowledgeable investors with a long-term investment horizon are the capital growth and greater rental returns brought on by the marketplace’s integrated ecosystem. The benefits of this sort of commercial building over malls include increased ground covering, leasable space that exceeds saleable space, freehold property, multiplied rents, and substantially less maintenance.

Environmentally responsible and sustainable commercial and residential development

In the Indian real estate sector, progress is anticipated to be facilitated by factors like governance, sustainability, and the environment. Investors looking to make knowledgeable company investment decisions are now placing an increased emphasis on transparency and stakeholder participation. The attention that developers are currently placing on LEED, IGBC, GRIHA, and BEE certifications in the building is significantly reducing carbon footprints.

Rising interest in free-hold real estate

Most industrial and commercial plots are leasehold, which means they may only be utilized for a certain period, often 99 years in some states. In this case, ownership rights belong to governmental entities like housing boards and municipal companies. On the other hand, the owner of a freehold property has total authority over the property.

The demand for the ability to own properties has been made by the business and industrial sectors for a very long time to encourage growth and borrowing. To make conducting business easier, industrial rules must be written to permit the conversion of leasehold to freehold industrial plots. Since there is currently a significant demand, more of these properties will be investigated in 2022.


Demand for data centers is rising

The COVID-19 pandemic’s massive digital push has been beneficial for data centers, which may still offer a rental yield of about 15% annually. As soon as India entered lockdown due to COVID-19, businesses started to upgrade their digital infrastructure to adapt to the new working environment, which led to a 25–35% increase in the usage of data center capacity.

An estimated 445 MW of essential IT capacity is now housed in the Indian data center industry, and a further 290 MW is anticipated in 2022, bringing the total to 735 MW by the end of the following year. Mandates for working from home (WFH), online learning, video-based medical consultations, a massive increase in e-commerce, and business-related webinars and video conferencing are all increasing demand for secure data centers. Data centers’ future is also secured by the government’s decision to make data localization mandatory. Data centers are becoming more popular as a viable alternative asset class in real estate.

Ultimately, the development of the SCO idea will accelerate in 2022. By having a commercial area at reasonable prices with superior facilities, these SCO plots will aid entrepreneurs in developing their company concepts. The advantages of a well-equipped condition are met retail or office in a favorable market are increasingly being recognized by astute investors. By using this newly growing idea, mixed-use commercial buildings will unquestionably help investors diversify their risk in their investment portfolio.

Related Articles

istockphoto 1312767508 612x612 1

What is National Securities Depository Limited (NSDL)

NSDL or National Securities Depository Limited is a financial institution that was established to keep securities like shares, bonds, etc in the shape of non-physical or physical certifications, that is in demat format. The securities are maintained in deposit accounts, which are similar to funds in bank accounts. It allows for quick securities transfer because ownership gets transferred merely by ledger entries. This is frequently done digitally, saving the extra time required in the previous practice of exchanging physical certificates once a deal was concluded. India’s capital market, which has been around for almost a century, has always been quite active. But, due to settlements that are based on paper, it had significant flaws such as poor delivery, prolonged transference execution, and so on.  To address these concerns, the Depositories Act 1996 was enacted and went into effect on Sept 20, 1995. This legislation mandated the Security Depositories establishment in India to manage securities.  Security is a financial asset that…

Read more
istockphoto 1176996544 612x612 1

Step-by-Step Process for Income Tax Login

Income Tax Login step-by-step process? To finish the E-filing of IT Returns, you must first successfully finish the registration procedure and connect to the IT E-filing site. You may utilize the e-filing site and a variety of services related to tax by finishing the income tax login process. The steps below will walk you through the process of finishing the income tax E-filing site login. Also, read Tax Saving via Deductions Under Section 80C 80CCC 80CCD and 80D. How To Do Income Tax Login? Step 1: Navigate to the Income Tax e-filing website. Select the “Login Here” option in the upper right-hand side of the site.   Step 2: After clicking the “Login Here” option, you will be sent to the Income Tax Login webpage.   Step 3: Also on the login screen, enter your User ID, which is your Permanent Account Number or PAN. Enter the password you created when you registered for your IT e-filing account. After you’ve…

Read more
istockphoto 1252264724 612x612 1

Everything about CSC Digital Seva Portal

CSC Digital Seva Portal is a gateway that provides info on numerous firms and electronic governance to inhabitants in remote and rural areas of India. A CSC facility’s full name is Jan Seva Kendra or Common Service Center. Common Services Centers or CSC is a network based in India that aims to transform India into a digitalized country. CSC Scheme 2.0 got started in Aug 2015 for improving accessibility to digital and technological services for citizens in remote and rural areas of India. The CSC Digital Seva Portal’s Goals Connect 2.5 lacs of Gram Panchayats in India. Citizens of India should access trustworthy and up-to-date info. In villages, all basic services are given in a single place. Deliver low-cost, services that are of high quality to average people. Governmental welfare and social assistance programs are promoted. Develop new rural jobs and promote rural entrepreneurship. Registration for the CSC Digital Seva Portal To commence the registration process, one must comply with…

Read more

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY is an Open-ended Deferred Pension Plan. The scheme offers guaranteed return of 8% per annum for 10 years. Minimum pension amount is Rs. 1,000/ month and maximum pension amount is Rs. 10,000/ month depending on purchase price. Returns will be paid on a monthly basis. On maturity, the entire pension wealth will be paid in lump sum and no annuity will be offered thereafter by the Pension Fund Regulatory and Development Authority (PFRDA). The first installment of 5% or 50% whichever is lower is payable within 2 years from the time when account balance reaches Rs 1lakh/- which will happen after completion of 10th year under this scheme i.e before 2040s for most of us today! PMVVY is an Open-ended Deferred Pension Plan PMVVY is an open-ended deferred pension plan that provides guaranteed return of 8% per annum for 10 years. The scheme offers minimum pension amount of Rs. 1,000/ month and maximum pension amount of Rs. 10,000/ month…

Read more
EPFO KYC update for UAN

How to update KYC for EPF UAN?

KYC is being adopted by most of the government and private sector organizations for maintaining the proper records of official matters. The Indian government has already made it mandatory for employees as well as consumers to link their Aadhar card with various types of accounts and digital entities. Therefore, it is also compulsory for you to link your EPF with your Aadhar as well as other important digital documents. Don’t know how to do it? Don’t worry, we have got your back! In this article, we’ll learn how to update KYC for the EPF’s UAN and also go through the basics. Stay tuned until the end to understand it better.  What are the advantages of updating your EPF’s KYC details? A wide range of benefits can be reaped by updating the KYC on your EPF account. Some of those benefits are: You can make online withdrawal claims, which happen only after you link/seed your Aadhar with the UAN The transfer…

Read more
istockphoto 1353920585 612x612 1

EPF Form 10C – Benefits, Eligibility & Documents

EPF Form 10C is used to request a reimbursement of the employer share, the withdrawal benefit, and the scheme certificate for membership retention. An Employees’ pension fund (EPF) or Employers’ Pension Scheme is a retirement plan that EPFO enfranchises for employees working in organized sectors. Both the employer and employee contribute to EPF during a person’s employment period at that company. UAN – This unique number is assigned to each member of EPFO. It consists of 12 digits. An EPF certificate gives information about the employee’s employment, including the service period and the family members that will be able to benefit from the scheme in the event of death. Individuals can choose to continue their work after they retire from a company. You can either transfer the company to your next one or withdraw it. In case of withdrawal, the person must file EPF Form 10C.  Filling EPF Form 10C   Online and offline filings of Form 10C are possible. These…

Read more