India’s commercial real estate sector is not just booming; it’s on a trajectory for exponential growth. By 2029, its market value is projected to triple, soaring to an impressive $106.05 billion from the current $40.71 billion. The nation’s robust economic expansion, key governmental initiatives like Make in India, and realty sector reforms such as RERA drive this remarkable surge.

Commercial real estate offers a promising avenue for investors seeking high returns, especially in the National Capital Region (NCR). “Investing in commercial real estate offers a range of benefits. Commercial properties typically yield higher rental returns than residential ones, especially in prime locations of NCR like Dwarka, where annual rental yields can be quite high,” explains Mohit Goel, Managing Director at Omaxe Group. These properties provide a steady passive income and promise more stability than volatile assets like stocks or mutual funds.

Investing in strategic locations like the Noida Expressway and Dwarka Sector 19B is not just advantageous but smart. These areas are experiencing rapid growth and a surge in demand for commercial spaces, which is predicted to lead to significant appreciation. Salil Kumar, Director of Sales & Marketing at CRC Group, underscores the diverse opportunities in these locations: “Commercial real estate in these areas offers a unique chance for diversification, enhancing resilience against economic downturns. It also acts as a hedge against inflation, as property values and rental rates tend to rise during inflationary periods.”

The benefits of investing in this sector extend beyond simple economic gains. “Owning commercial property can facilitate business expansion, providing readily available space for entrepreneurial ventures while offering potential savings on rental expenses,” Kumar adds. Furthermore, leveraging these properties for loans can optimise financial strategies, offering lower interest rates than unsecured business loans and providing additional liquidity for business endeavours.

The sector’s appeal stretches globally, with Non-Resident Indian (NRI) investors particularly drawn to office spaces within the commercial real estate market. “This sector holds strong appeal, especially for NRI investors who regard it as a cornerstone of their investment strategy,” notes Sanjay Sharma, Director at SKA Group. The consistent demand for leasing and the expected increase in rental values suggest that robust returns on investment will continue, making the commercial real estate sector a promising and lucrative decision for investors.

According to Uddhav Poddar, Managing Director of Bhumika Group, the future of leasing in commercial real estate looks promising. “Leasing is anticipated to remain robust, and rental values are also expected to increase, which will lead to substantial returns on investment in the commercial real estate sector,” he says. Despite the significant initial investment required in real estate, the potential for high returns, coupled with the sector’s resilience against economic downturns due to the tangible nature of assets, marks it as a wise investment choice during these optimistic times for the Indian market.