Commercial Real Estate Industry to Bounce Back
PropCatalyst organizes a virtual summit on the Outlook of Commercial Real Estate post-COVID-19
The global pandemic of COVID-19 has had a significant effect on the Indian real estate market graph. The industry, in particular the residential industry, has already been faced with low customer demand, project delays and continuous regulatory changes over the last few years. Today, the effect of Coronavirus on the sector signals a red alert that has had a significant impact on the industry in its wake.
Leading real estate industry experts addressed the commercial real estate outlook in India through a webinar organized by PropCatalyst, an online technology-enabled investment platform that allows you to own Grade ‘A’ pre-leased commercial properties without the hassle of managing them.
“Indian office space is just 600 million square feet, compared to other nations. The market fundamentals are currently vacant; the demand may fall to 15-20 %, depending on the current situation. We’ve seen all the downturns, the sector that comes first, in a V-shape, is still the office sector, shared Ramesh Nair, CEO & Country Head, JLL India.
Dhaval Ajmera, Director, Ajmera Realty said, “The sector may see a delay of 3-6 months, but the pattern of output and consumption would slowly take place. After the pandemic has ended, India will become a key market and opportunities will develop.
Aniket Bharadia, Co-founder, PropCatalyst said, “We conclude that the company’s strategy for this year has been postponed and contrasts the situation with the economic crisis of 2008. We are optimistic that India will grow sharply and that other country will spend and look for space in India.
Neeraj Bansal, Partner & Head Corridors, KPMG India believes, “We are in the midst of a protracted period, and it will take time for developers to start development. There will be a decline in rental development, the industry will see a gap in demand and supply chains. Co-working space will also be impacted because businesses will pursue social distances.”
“The pain will be at its height at this point in time. It is necessary to note that, for retail investors, a short-term option is to stay away, which can not be regulated. In real estate, we all have to see how the system is going to open up in the long run. India has always taken advantage of the crisis, and this time too; many new business models will emerge as far as real estate is concerned. It’s going to get a better slice, the problem is only important for the short term,” said Karthik Rajaram, Co-founder & Managing Director, Xanadu Group.
Ritesh Malik, Founder, Innov8 Coworking said, “Post-COVID, we would see an atmosphere where people will like to have offices near their homes, and that will lead businesses to join up with co-working spaces in different locations in the long term.”
Aniket Bharadia, Co-founder, PropCatalyst said, ” “The concept behind PropCatalyst is to make investing in high-quality real estate more available to a broad investor audience. This helps build up a high-yield passive income for investors, because cash flows are monthly, and the underlying assets also offer a fair chance of capital appreciation. Even in the current financial difficulties, PropCatalyst has been able to pay rent to its creditors since it has invested in properties with top-quality multinational tenants.”
He also added, “Commercial real estate is not accessible to the masses due to its higher ticket sizes, so we offer ownership to different investors by fractional ownership. Growing investor shares the ownership of the property on the basis of the investment amount. The benefits of this ownership are that it offers Grade ‘A’ premium assets, diversification of investments, capital appreciation, higher liquidity and higher ROIs.