Construction Industry News
Demand for commercial real estate in India is on the rise and is the highest since the Covid pandemic. Return on investment (ROI) in commercial real estate is "relatively higher than the residential market" and established players are actively seeking partnerships with local developers to launch new projects as joint ventures, said Ravindra Pai, Managing Director, Century Real Estate.
“In office space leasing, tech users were the main drivers of total market leasing activity in July 2022 with a 53 percent share. Banking, financial services and insurance (BFSI) had an 18 percent share,” Pai said in an interview. The company plans to explore commercial real estate in FY23, along with eight new residential segment launches in the pipeline.
“In the years leading up to the pandemic, ticket size Rs 60-80 lakh was the best place in Bengaluru. After the pandemic, the industry is witnessing strong demand from Class A players in the plotted segment in this price range, as well as luxury homes,” said Pai.
The other real estate asset classes that are attracting investors today are warehousing and data centers, where demand is steadily increasing. “We foresee more investment here in the next 3-5 years,” he said.
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