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Election 2019 is around the corner, and RERA expects that the win-win situation is likely to benefit the commercial real estate sector in India. The stakeholders are likely to draw some advantages from the situation. The stakeholders include the real estate builders, investors and occupiers of the offices. The developers have to go through a greater degree of compliance. They need to make the details of the project accessible to the end users and the government.
The start-ups are keen to acquire new commercial real estate. RERA has bought about a good degree of transparency in the industry. This provides the start-ups to compare the projects being developed and choose the property accordingly. The commercial real estate sector has been growing in importance for various segments of the industry. Particularly, logistics, eCommerce and start-ups are emerging as some of the major drivers for this particular sector of real estate. The ITES companies and IT firms remain other important players, that have been driving the sales of commercial real estate in India.
In the tier I and II cities, investments in commercial real estate have been increasing. As a result, the demand for office and retail space is on the rise. The prices are likely to escalate further in the coming years. Evidently, property investors are purchasing these commercial spaces to benefit from the rental income. The investors have gained a greater degree of confidence as a result of the measures being taken by RERA to enhance the transparency in the industry. Companies are also looking for quality co-working spaces. They are looking for offices, where small teams of employees can work, enjoying a better access to the necessary facilities. With the elections coming up, it is expected that the government will make sure that the transparency in the real estate industry is maintained. Evidently, it will enhance the confidence of the property buyers and lead to a greater number of sales.
Since 2019 is an election year, the newly elected government is likely to provide the developers with an opportunity to stay focused on selling off their inventory. The year is also likely to witness an organic growth of the market through the consolidation of RERA and GST, that are already in place. In recent years, the growth in commercial real estate, including warehousing, co-working space and industrial real estate has been astonishing. The demand has been increasing and the positive trend is likely to continue through the election phase. Business firms and start-ups looking for a commercial space in India should make the investment now. This is a good time to buy the properties, given that the industry has a greater degree of transparency. The prices are rising in most of the big cities. Investors can immensely benefit from the opportunity.
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