If you are looking for a long term investment that will give a handsome return, you must go for a property for business. The commercial real estate world is regularly budding. However, the investors need to be prepared to take calculated risks. Nevertheless, what one needs to understand is that with the changing times there will be a change in trends in this sector as well.
This blog aims to make you understand that investing in real estate for commercial purpose is generally a good investment opportunity if done with awareness.
Commercial real estate: The future
1. Change in the retail sector
With technology and the trend of online shopping on the increase, the future of retails is going to change. The picture of Music stores, book stores, movie rentals etc has changed in the past few years, More and more consumers are switching to online shopping of music, books etc. But that does not mean that it is the end of retail outlets. It only means that the focus will shift to other items like spa treatment stores or healthcare equipments etc.
2. Change in office space requirements
When we talk about Commercial Real Estate the most important one is office space. We can already see that there is an increase in the concept of co-working spaces etc as these are affordable options. The focus is more on concepts like desk borrowing etc. So for those who want to give office space on rent will have to work on these concepts.
3. Commercial real estate: The REIT factor
The Real Estate Investment Trusts will play a major role in the commercial real estate in India. Developers will have to face tremendous pressure from funding agencies and organised corporate developers. The REIT’s will prefer to make investment in commercial properties as it will give them higher profits. It should be noted REIT’s are expected to invest 80% of their assets in property that will produce income.
4. The entrepreneurship factor
While talking about real estate trends one has to take into consideration the entrepreneurship factor. With the number of unemployed increasing the focus should be more on generating employment and focusing more on entrepreneurship. So, one will find that proprietors and skilled artisans are showing more interest in renting or buying industrial properties.
To Sum up
Well, the real estate is facing a turn-on-its-head because of the coronavirus pandemic. However, the demand for commercial property will surely be on the higher side not just now but even in the future. You just need to understand the best type of commercial real estate and invest.
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