On account of better returns, FDI flow and better chances for employment; commercial realty is turning out as a new landscape for the Indian developers. Since, commercial realty is the must for success of residential realty, Indian developers are betting high on the commercial realty after the announcement of central government’s ‘Housing for All’ program.
Elaborating upon the turnaround in Indian real estate market; Deepak Kapoor, President CREDAI-Western UP chapter said, “There is no point in creating homes for everyone if people cannot afford to buy one. To make them buy, we need to provide employment with better scales and even better environment.” The Director of Gulshan Homz went on to add, “Just like homes, commercial spaces need to be made available across the country, so as to allow overall growth of the realty sector of India and the economy as well. Housing For All is now in pipeline, but Commercial For All needs to be thought of by the government.”
Ankit Aggarwal, CMD, Devika Group said, “There is a direct relation of demand and supply between residential and commercial real estate. If there is huge residential settlement in a region, then supply for commercial spaces is in demand and vice-a-versa.” He said that housing for all is crucial for fulfilling basic needs of the people, but what about offices, retail spaces, hospitality spaces, etc. “ Commercial real estate plays the part of completing the real estate outlook of a destination, which is imperative for the sector and economy to perform and grow,” added Aggarwal.
Rupesh Gupta, Director, JM Housing explains, “As far as commercial real estate in India is concerned, it is already witnessing a boom in the market due to a high demand of office, retail and hospitality spaces. This will continue to grow as the developers are planning and introducing newer and unique concepts with respect to enhancing the official lifestyle of a user such as providing homely facilities like spa, gyms, yoga centres, jogging tracks, café areas, restaurants, shopping complexes, etc. at a commercial property. Features like these are sure to keep the demand graph rising for commercial properties.”
Sushant Muttreja, CMD, Cosmic Group said, “Today, developers have several ongoing commercial projects across the country. One reason is the increasing demand of office spaces, and other being better returns through lucrative deals that residential properties can’t always offer. Commercial units usually carry assured return schemes with them and this allows the buyer to start getting returns from the date of booking till possession. After that, the property can be put to lease or even sold, thereby carrying the process of earning returns. Therefore, it is an all win situation for the buyers.”
Kushagr Ansal, Director, Ansal Housing said, “A commercial real estate is recognized as a more professional work of construction as it involves better and unique architectural designs, construction, planned location, connectivity, schemes, etc. A commercial property may be developed as small as 200 sq. ft. to as big as 2,00,000 sq. ft. or more. Therefore, a lot of planning, fund allocation & management, manpower, technology and execution are involved for the commercial real estate to perform.”
On returns that a commercial realtor can expects in comparison to residential realtor Ansal said, “The end result thus becomes greater employment generation, more FDI in term of funds and technology, better returns and overall growth of the realty sector.”
Ashok Gupta, CMD, Ajnara India said, “Residential real estate can greatly satisfy domestic demand but foreign demand to a certain extent only. Whereas, commercial real estate provides this benefit to domestic as well as foreign investors; in fact foreign investors rely greatly upon a superior commercial setup in a country to enter and settle. Thus, the purpose of adding value with benefit to the sector and economy is better achieved with developing commercial projects in sync with residential projects.”
Real estate sector has been one of the prime contributors to Indian Gross Domestic Product (GDP) and employment generation, due to which it been a key focus area of the government. Commercial real estate plays a vital role in making sure that the sector keeps this momentum going and enhances the economic scenario of a nation.
Vivek Gupta, Director, Vardhman Estate & Developers (P) Ltd. as he says “The need for housing has been ever-growing in our country, looking at the rising population levels. Provision of homes is one aspect of fulfilling the necessity, but providing employment and a place to work will assist in fulfilling the three core needs; social need, esteem need and self-actualisation need. Providing commercial spaces will always be an integral part of developing a society and should be thus, kept in sync with the housing needs.”