Covid19 Impact and Reason’s to Invest in Commercial Real Estate

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.

  1. 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. 

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2 thoughts on “Covid19 Impact and Reason’s to Invest in Commercial Real Estate”

  • Will 2021 festive season bring cheer to India’s COVID-19-hit Realty market? | Buy & Sell Residential, Commercial Property | My Realestate

    […] seasons already at doorstep to cheer up the religious spirit of people, real estate market in post Covid-19 hit India is unsure if the unsold inventory in residential segments will see positive revival during the […]

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  • Infrastructure and connectivity: The growth drivers for commercial and residential realty | Buy & Sell Residential, Commercial Property | My Realestate

    […] Commercial real estate can witness boom if the locations of any commercial establishment has better road connectivity and infrastructure facilities to the utmost convenience of the investors, as such property’s rental values increases manifold. To state otherwise, better road network enhances the economic and social prospectus for the commercial property as well as increasing realty value of the nation. […]

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