Commercial property investors are being advised to look towards the Indian market for a regular cash flow in 2015.
The advice comes from JLL India’s Chairman and Country Head Anuj Puri who says that, while residential property may be over-valued in some areas, commercial property is still quoting below its 2008 high, meaning that investors are not solely dependent on appreciation to create a profit when the building is sold.
In a column that appears on Moneytcontrol.com Mr Puri outlines further reasons that investors should consider India.
Traditionally, buying commercial property has been seen as an area where only large investors have been able to participate. Now, smaller investors can participate by buying a commercial property themselves, buying shares in a commercial developer or investing in a Real Estate Investment Trust (REIT).
Entrepreneurs are attracting large amounts of investment funds, not only from domestic companies but also from international sources. This has become a major factor in driving demand for commercial real estate in India over the past two years. It is now major factor in driving demand in Tier 1 and 2 cities in India.
Office demand is rising and rental yields currently stand at between 8-11 per cent which makes investing in commercial property a very wise choice at present. Commercial real estate offers higher appreciation than residential property due to rising demand.
