By A typical real estate investment comprises getting a house or other residential property. According to market conditions, the main justification is that capital growth on a house investment happens more quickly. Housing has always been the top choice for real estate speculators in India. Consumers perceive it as a risk-free, income-producing real estate asset.
Other assets, like retail, have started to take centre stage. The real estate sector has developed and matured in recent years. The Director of Rajdarbar Realty Limited, Ms. Radheecka Rakesh Garg, claims that investing in retail real estate can give investors a consistent income through renting, leasing, or selling retail premises. Shopping centres, standalone stores, and pop-up shops are all instances of these situations. Supermarkets, pharmacies, dry cleaners, and cafes are just a few examples of the many different kinds of retail establishments.
It’s possible that the start of Covid-19 and the ensuing lockdowns initially slowed the retail industry down. However, when retailers adjusted to shifting consumer needs, it also sparked technology development and a plethora of innovations. This led to the rise of omnichannel retail. It provides a balance between convenient and experiential shopping, and increased demand for offline spaces. As a result, nearly 10.15 million square feet of new mall space will be available in Tier 1, 2, and 3 cities by 2022. Another 7.25 million square feet to be added in 2023.
Ms. Radheecka Rakesh Garg also believes that India’s retail real estate industry is responding to noticeably higher footfall counts. Consumers resume more frequent shopping and socializing routines. Malls and shopping centers have seen High occupancy rates are once more. It is clear that additional organized retail space is needed. Brands are actively broadening their portfolios and implementing regional store strategies. According to a report by CBRE, a real estate advisory business, retail sector transactions increased by a staggering 160%. In the first half of the calendar year 2022 and by more than 100% in the second quarter.
To grow their offline and online stores, retailers are luring customers with fresh and creative concepts. Over time, it was seen that H1CT 2022 saw an exceptional growth of 500%. All thanks to the opening up of the market after the impact of pandemic Covid-19 in the previous year and freedom to the buyers to go out and express themselves after being in isolation for about a year or so.
What then lays ahead for commercial real estate, looking back? Industrial and multifamily properties are doing well so far in 2022. With healthy balance sheets, consumer demand could further bolster retail, multifamily, and industrial asset classes. Next-door retail has done relatively well in the populated and overpopulated areas, as they not only sell at their shop but also deliver to the customer at his doorstep. The hybrid concept is now effective for commercial places like offices and co-working areas, but as usual, it will inevitably alter over time.. However, the clear image will depend upon the critical factors of ongoing relationships between public and private entities in affordable housing, however, will determine the clear picture.
Also read: Integration of technology has revolutionized the real estate industry
