30 Second Summary
- Commercial real estate market is going through challenging times post the COVID-19 outbreak.
- E-commerce, healthcare, information technology will create demand for commercial real estate.
- The decline in demand due to work from home policies adopted by many technology companies is slowly getting back to normal.
- Major loss in the sector is due to rental revenues losses because of Covid-19 crisis, but as in the past this is the most robust growth factor and in future also will harvest growth for investors in long run.
The real estate market is going through challenging times post the COVID-19 outbreak. However, if you plan to diversify your portfolio and earn higher capital returns, then the commercial investment would be a better option owing to the renewed demand in the sector, growth in the number of start-ups and favorable policy announcements in Budget 2021.
Sectors like e-commerce, healthcare, information technology will create demand for commercial real estate, the decline in demand due to work from home policies adopted by many technology companies is slowly getting back to normal.
Major loss in the sector is due to rental revenues losses because of Covid-19 crisis, but as in the past this is the most robust growth factor and in future also will harvest growth for investors in long run. From the past few years Residential real estate has been into problems and in coming times also there is no escalation of growth excepted as compared to commercial real estate.
Below are a few reasons why investing in commercial real estate can be a good decision in the post-COVID-19 world.
- The emergence of new businesses
2. Higher Returns
3. Long Term Appreciations
4. Fixed Rental Income
While investing in commercial real estate seems to be promising as of now, it involves good amount of investments. Therefore, consult a local real estate advisor to understand the market before investing in a commercial property.