Commercial Properties Expected to Lead the Recovery of Real Estate Post-COVID

In recent years, commercial properties have been emerging as the preferred choice for most property investors. This is primarily because these properties are much more profitable than residential ones. Now in the post-COVID period, it is expected that commercial real estate would lead the revival of the industry.

Even in times of economic slowdown and during changes in the global economy, commercial properties have proven to be profitable without its value being affected much. The IT sector continues to function despite the pandemic and this is why the demand for commercial spaces like office units is high. In order to survive during the pandemic, firms need to come up with innovative solutions. Only those companies which can adapt to the new normal would thrive. Thus, investors purchasing commercial properties would be able to lease out the properties to such companies, which is why the demand for such commercial spaces is still high.

The demand for commercial spaces among existing brands is expected to grow due to the pandemic. This is because in order to keep functioning like before while maintaining social distancing norms, many companies are buying new office spaces and expanding.  These are mostly forward-thinking brands which make sure to go for sophisticated office complexes which would benefit them in the long run.

Due to the importance that remote working gained during the pandemic, there would be a number of changes in the trends. It is expected that more and more companies would now seek offices with sophisticated infrastructure needed in order to sustain the new lifestyle and changes in working style. Hygiene and wellness are now gaining extra importance. The demand for properties which ensure a safe working environment free from the risk of the spread of coronavirus is on the rise.

Ever since REITs were introduced in 2019, the commercial real estate in India has been growing at a steady pace. Even though the pandemic affected REITs, it is expected to revive soon due to its strong leadership team and well-planned functioning.

With supply chains blocked off due to the pandemic, many companies are relocating their manufacturing units to India. This too is another reason behind the rise in demand for commercial spaces. Developers are also coming up with various innovative measures and it is expected that the commercial properties would shape the growth trajectory of the Indian real estate in a healthy direction.