Recent Updates for Investors Seeking Commercial Real Estate

Did you know? Real estate in India is one of the largest contributors, with an estimated 6.5% –7% of the national GDP. Surveys also reveal that commercial property investment is a preferred choice in India due to the returns it offers. With an increase in economic activities post-pandemic, the demand for commercial properties is soaring, especially in metropolitan cities, e.g., Bangalore, Chennai, Mumbai, Hyderabad, Delhi & NCR, etc.

Why Should You Invest in Commercial Real Estate?

Bangalore, in particular, is known for its diverse options in commercial real estate. Infrastructure expansion, the influx of global corporate giants, and the rapidly progressing construction of the NM airport corridor have captured the attention of property investors. Considering last year’s market trends, Bangalore was among the top five Indian cities for commercial real estate investments in 2022. Moreover, Knight Frank’s latest reports state that “Bangalore is likely to lead the Indian real estate market’s growth this year.” Experts predict a whopping increase in value of 3–10% in the residential, office rental, and warehousing sectors. A large section of investors are interested in buying offices, retail outlets, B2B and industrial spaces for storage, packaging, manufacturing, etc.

With companies resuming on-campus operations and employees getting back to work, the demand for commercial spaces has increased. A lot of e-commerce ventures (that started during the pandemic) have actively pursued warehousing spaces, while startups have expressed interest in flex spaces. This trend is encouraging builders to innovate existing layouts and come up with contemporary-style work spaces to suit the varying requirements of their clientele. All this has collectively contributed to an incredible performance of commercial real estate in recent times.

As the market is swiftly globalising and expanding, there is an increasing demand from investors for stringent actions, transparency, higher ethical standards, and consistent regulatory treatment. The real estate industry in India seemed to be struggling with governance, keeping up with standards, reporting basic market data, complying with laws, and delivering what was expected on time. However, with the new real estate transparency regulations and decrees, the tides have shifted in favour of investors. Thus, it is a good time to invest your money in commercial real estate, Bangalore being the ideal destination

If you're seeking a commercial property for sale or lease in Bangalore, here are some recent updates you must know about.

Digitization Of Land Registration Records

The Indian government recently issued a NGDRS portal with a dashboard to digitise all land records (including mutation, maps, survey & maintenance details) to ensure real estate transparency. With this, all real-time land ownership, dispute, and case settlement records will be freely available to all Indian citizens.

How Is It Beneficial For Investors?

• By limiting the interaction between citizens and government officials, digital records can help control harassment and corruption.
• The PPP (Public-Private Partnership) mode of service delivery makes the process more convenient.
• Legal authorities can easily monitor the records. This would hasten dispute resolution and facilitate quicker transactions.
• Public records enable e-linkage to credit facilities and reduce the scope of defaulting timelines or fraudulent property deals.
• Based on the data, citizens can determine their eligibility for loans, subsidies, and other government benefits.

 

Protection Of The Legal Rights Of Commercial Investors

 

The 2016 RERA (Real Estate Regulatory Authority & Development) Act safeguards the rights of real estate investors in India. It was initially introduced for the benefit of residential property owners. However, even commercial properties are covered under the act, including offices, retail outlets, plotted developments, and all ongoing projects with a pending completion certificate.

The act allows investors to access the financial strength, past records, and project completion details of builders. It ensures that all commercial builders obtain the necessary approvals before launching a project. They are expected to comply with the laws related to ESCROW accounts, sale proceeds, utilisation of funds for construction, and the completion of projects. Dispute resolution is quicker with the establishment of the REAT (Real Estate Appellate Tribunal). It offers a sense of assurance to investors in under-constructed properties by reducing the risks of investing in unrealistic schemes of assured returns, thus ensuring greater transparency in real estate.

There's no such thing as a suitable time for investment when it comes to commercial real estate. Despite market fluctuations, commercial properties will continue to have a lucrative appreciation value, especially in Bangalore. The Brigade Group is a renowned name in the real estate industry in India. Founded in 1986, the organisation has developed landmark commercial spaces for sale and lease in various cities across India. Visit our website to have a look at the best-in-class commercial properties with top-of-the-line facilities offered by The Brigade Group.