Why Are Investors Flocking to Commercial Properties? 

Have you ever wondered why commercial real estate is suddenly the talk of the town? While residential properties have their charm, it’s the commercial spaces that are turning heads and driving big numbers. Back in 2022, the commercial real estate market in India was valued at a staggering $41.6 billion. But here’s the kicker—by 2032, this market is projected to skyrocket to $241.82 billion! What’s fueling this explosive growth? 

And more importantly, should you be considering commercial properties, especially in emerging hubs like Bhubaneswar, for your next big investment?

Let’s explore!

But first, let’s break down the types of commercial properties available, especially if you’re considering investing in commercial properties in Bhubaneswar or other booming cities. 

Types of Commercial Properties: A Quick Guide

Before jumping into the commercial real estate game, it’s essential to know what’s on the table. Let’s break down the main types of commercial properties you can invest in across India: 

Office Buildings

Imagine a place buzzing with energy—private offices, open workspaces, conference rooms, and break areas all under one roof. That’s your typical office building. In cities like Bhubaneswar, where commercial activity is centralized, snagging an office space can be a golden ticket for both investment and business opportunities. 

Retail Spaces

From grocery stores to sprawling malls, retail spaces are hot property. These are typically located in high-traffic areas, making them a prime investment option. In a city like Bhubaneswar, where urban development is on the rise, retail spaces are particularly lucrative.

Hotels

India’s hotel market is booming, expected to grow to $13.92 billion by 2029. With India’s rich cultural heritage and influx of tourists, investing in commercial properties dedicated to the hotel industry can be a wise move. 

Warehouse/Industrial Spaces

Industrial and warehouse spaces are the backbone of businesses dealing with production, packaging, and distribution. These properties are designed for efficiency and are strategically located near major transport routes. Bhubaneswar’s growing infrastructure makes it an ideal spot for such investments.

Mixed-Use Properties

Imagine a building that houses retail spaces, apartments, and offices all in one. That’s a mixed-use development—a highly profitable investment that offers convenience and versatility. 

Getting Started in Commercial Real Estate

Now that we’ve covered the types of properties, let’s talk about how you can get your foot in the door: 

Direct Investment

If you’ve got the cash and the know-how, direct investment is your go-to option. You’ll work with a real estate agent to find a property, and then you can either manage it yourself or hire a property manager. 

Indirect Investment

If you’re short on cash or real estate expertise, don’t worry. You can still invest through REITs, crowdfunding, or ETFs. This way, you get to enjoy a slice of the commercial real estate pie without handling the day-to-day operations. 

Why Invest in Commercial Properties in Bhubaneswar? 

Now, let’s get to the heart of the matter—why should you consider investing in commercial properties, especially in emerging markets like Bhubaneswar?

High-Rental Yield

Commercial properties, especially in growing cities like Bhubaneswar, offer a high rental yield. You can expect an annual return of 6-10%, compared to the 2-4% yield from residential properties. It’s a steady stream of passive income that’s less volatile than stocks or mutual funds.

Appreciation Potential

Location is everything! In high-growth areas like Bhubaneswar, commercial properties are likely to appreciate significantly. Investing in a well-located office or retail space can maximise your returns.

Diversification

Adding commercial real estate to your investment portfolio is a smart way to diversify. It offers stability, especially during economic downturns, making it a great hedge against risks. 

Hedge Against Inflation

When inflation hits, real estate values and rental rates typically rise. This means you can adjust lease terms and protect your income stream, making commercial real estate a solid hedge against inflation. 

Business Expansion

Investing in commercial property also provides a ready-made space for future business expansion. Whether you lease it out initially or use it for your own business later, it’s a win-win situation. 

Long-Term Leases and Professional Tenants

Commercial tenants usually sign long-term leases, ensuring stable and reliable income. Plus, dealing with professional tenants means fewer headaches and more predictable cash flow.

Tax Benefits

Commercial real estate comes with its own set of tax perks. From deductible interest on loans to tax savings on property-related expenses, the financial benefits are substantial.

The Bottom Line 

Whether you’re eyeing commercial properties in Bhubaneswar or anywhere else in India, the commercial real estate sector is brimming with opportunities. With high rental yields, significant appreciation potential, and a host of other benefits, it’s no wonder this market is growing so rapidly. So, if you’re looking to diversify your investment portfolio, now might be the perfect time to dive into commercial real estate with propel+!