Location plays a key role. Commercial office space provides returns through two avenues— rent and capital appreciation. Both are heavily dependent on the location. Locations where vacancy is less than 5%. This means that supply is under scrutiny and tenants are less likely to vacate, leading to higher rents and capital appreciation
renegotiate rents.
According to statistics business environment has reached to several sectors with India’s commercial office sector being a prime benefactor. The year saw occupiers opting for large office spaces underlining the increased assurance of occupiers in the office market. The real estate sector is one of the most recognized sectors. Real estate sector includes four sub-sectors - housing, retail, hospitality, and commercial. The growth of this particular sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations.
The Indian real estate sector has witnessed high success in recent times with the rise in demand for office as well as residential spaces.
New business models and competition, excessive use of technology, and changing tenant and investor expectations are redefining the commercial real estate industry. As investors tremendously favor newer business models and the tech-enabled ecosystem, companies in the commercial real estate industry will have to realign business priorities and adapt to new demands.
