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Commercial real estate has become a vital form of real estate today.

Commercial real estate has become a vital form of real estate today.

A very different and recent form of real estate is the commercial real estate. Apart from a few renowned commercial buildings in the country, the commercial real estate saw a big boom in the late 90’s. As the globalization started to spread its effect, big brands started to come in India. This in turn made the builders to develop new form of properties; the retail, office spaces, virtual offices, etc. Started with DLF, Emaar MGF, Supertech, Ansal Housing, Cosmic Group etc., commercial real estate has become a vital form of real estate today.

How is it different from residential?

A commercial real estate is recognized as a more professional work of construction. It involves better and unique architectural designs, construction, better location, connectivity, schemes, etc. A commercial property may be developed as small as 200 sq. ft. to as big as 200000 sq. ft. or more. Whereas, in a residential property a builder has to first think about what kind of property to build; whether an apartment, penthouse, villas, etc. Depending on the structure, then the size is decided on the basis of number of rooms to be built. Therefore, a lot of money and planning is involved for the commercial real estate.

Connectivity

Another major differentiator between the two is the connectivity factor. For a residential property, the connectivity is thought off on the basis close by infrastructures such as schools, colleges, hospitals, markets, etc. This is important as the users of these are families, couples, old aged people and children. In contrast to this, commercial real estate majorly requires transportation arrangements in close vicinity such as metro stations, bus stands, taxi stands, parking lots, etc. Also, it is very important to have a belt of commercial properties in one region and based on this concept, many sectors are been built purely with commercial properties. Mr.KushagrAnsal, Director, Ansal Housing, says “If the commercial properties are not well connected, it becomes nearly impossible to sell them. It is extremely important to have good infrastructure and transportation facilities available nearby so that it becomes easier for users and buyers to buy and use a property”.

 

Location

Commercial properties are mostly built on the outskirt regions or highways. This helps in preventing the traffic. Having an office in a residential area may create lot of disturbances w.r.t noise, traffic, etc. Therefore, a commercial property now a days is been built kept in mind to avoid the residences. Ajnara India Ltd., a major realty player of NCR has developed several residential and commercial projects in the region. Mr. Ashok Gupta, CMD, Ajnara India Ltd. says “Location plays a very vital role in deciding whether to develop a commercial property or a residential property. I believe it is better to a commercial property connecting regions such as long roads and highways. There we have lots of lands available plus it becomes easily accessible for the people and also avoids nuisance in the residential areas”.

Offers and Schemes

Building a commercial property requires lots of funds and investment, even more than a residential property. Since the investment is more, the return will always be more. It is often seen that a 500 sq. ft. commercial property will give a return more than a 2500 sq. ft. of residential property. So, it is always beneficial for a developer to build and sell a commercial property. Therefore, for commercial properties there are different schemes and offers, one of which now a days is an assured returns schemes bought by developers. Cosmic Group, a group known for its unique real estate concepts has developed several commercial properties. Mr.SushantMuttreja, MD, Cosmic Group says “Today, developers have several ongoing commercial projects in NCR. They are offering assured return schemes on them. This allows the buyer to start getting returns from the date of booking till possession. After that, the property can be put to lease or sold. Therefore it is an all win situation for the buyers. Also, the margins are so good on these properties that even thebuilders get their share of profits.”

 

Future

As far as commercial real estate is concerned, it is already witnessing a boom in the market due to a high demand of offices, retail, service apartments, etc. This will continue to grow as the developers are planning and introducing newer and unique concepts w.r.t enhancing the official lifestyle of a user such as providing spas, gyms, yoga centres, jogging tracks, café areas, restaurants, shopping complexes, etc. at a commercial property. Features like these are sure to keep the demand graph rising for commercial real estate.GulshanHomz, a realty major in NCR is planning to come with its first commercial project. Mr. Deepak Kapoor, Director GulshanHomz says “After delivering several residential projects, we are planning to come out with a commercial project. The returns are way higher and now the demand for the commercial properties have risen greatly over the past few years, especially in NCR. We see a number of MNCs also trying to enter in these regions. So, it will be a rather better deal to develop a commercial property”.

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