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Commercial Real Estate in India

Commercial Real Estate is more lucrative when it comes to earning rental yields.
Minimum Ticket Size₹ 25 Lakhs
Upto
18%
IRR
Upto
10%
Rental Yield
What process does hBits follow when acquiring a asset?Know More

What is Commercial Real estate?

Commercial real estate encompasses properties used for business purposes, such as office buildings, retail spaces, industrial warehouses, hotels, and multifamily apartment buildings. These properties are leased to businesses and organizations, offering a distinct advantage over residential real estate, where tenants are individuals or families. Investing in commercial real estate is attractive for investors seeking higher rental yields and more stable cash flows. The longer lease terms associated with commercial properties contribute to this stability and predictability in income. Furthermore, the potential for capital appreciation over time adds to the appeal of commercial real estate investments. Factors like economic growth, development in the surrounding area, and property improvements can increase the value of these investments.For investors willing to research and understand the market, commercial real estate presents a valuable opportunity. Identifying properties with strong potential for rental income and appreciation, while managing risks, can lead to lucrative investment outcomes.

Factor to look while investing in Commercial Real Estate

Market Potential Assessment

Before diving into commercial real estate, it’s crucial to size up the market and location. Look for bustling business areas with steady demand, ensuring reliable tenants and secure lease agreements.

Tenant Business Analysis

Get to know your potential tenants and their businesses inside out. Identify any risks that could impact rental income, especially in sectors prone to disruptions like online competition.

Tenant Management Evaluation

Take a close look at how tenants are managed. Opt for properties hosting businesses with solid management and governance, ensuring smooth operations and timely payments.

Permissions and Clearances Understanding

Understand the red tape involved in commercial property investments. Map out the permissions needed and their timelines to gauge the investment’s feasibility and your patience level.

Employment Trends Consideration

Stay ahead of employment trends that could affect commercial property demand. Factor in shifts like remote work preferences to adapt your investment strategy and mitigate risks.

Partner Selection

Choose partners wisely for commercial property ventures. Look for reputable collaborators with financial stability and industry experience to share the load and increase your chances of success.

Why one should invest in CRE

In today’s economy, there are businesses that have been shut down. In the same light, equity markets continue to boom and make good returns on investment for their investors. This is a sign of bubble-like behavior in which people tend to invest money with great risk in hopes of getting high rewards.
There is no wealth product that gives you monthly cash flow like real estate. Rentals are paid off every month in this industry, and investors can make a decent amount of money from these investments if they do not sell their property too soon or hold on to it for long periods of time after purchase.
Historically, when inflation is high and returns in the equity market are low people prefer to diversify their investments by investing some of them into real estate. Commercial Real Estate investing provides a hedge against inflation because it gives steady rental income which helps offset any loss you might have had if your investment was solely in equities.
The best way to invest in Commercial Real Estate is by holding a long-term lease. The yields are very competitive with 8-10% only from the rental income. This is almost double that of FD rates.

Process of Acquiring an Asset

TODAY

Robust Asset Selection

SOURCING

SOURCING

Sourcing from developers, International Property Consultants, and local brokers.

EVALUATION

EVALUATION

Appraising assets, their ROI, profiling tenants, and reviewing lease agreements.

ANALYSIS

ANALYSIS

Sourcing from developers, International Property Consultants, and local brokers.

DUE DILIGENCE

DUE DILIGENCE

Sourcing from developers, International Property Consultants, and local brokers.

TOMORROW

Completely Automated

SOURCING

SOURCING

Inbound sourcing given scale and historic performance.

EVALUATION

EVALUATION

An automated process that runs on an algorithm check list.

ANALYSIS

ANALYSIS

Data-driven predictive analytics to forecast future prices.

DUE DILIGENCE

DUE DILIGENCE

Automated interactions with law firms for legal processes.

Know More About
Fractional Ownership Investment

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Fractional ownership allows customers to own a fraction of a Grade A real estate asset and benefits from a share of the income that the asset generates, and any appreciation in the value of the asset. hBits is a real estate ownership tech platform that enables its customers to buy a fraction of Grade A commercial real estate assets rented out to multinational companies.

Blogs

RBI's Rate Cut: A Boost for Investors & Why Fractional Ownership in Commercial Real Estate Stands Out

RBI's Rate Cut: A Boost for Investors & Why Fractional Ownership in Commercial Real Estate Stands Out

The Reserve Bank of India’s (RBI) latest Monetary Policy Committee (MPC) decision to cut the repo rate by 25 basis points (bps) to 6.25% marks a significant shift in the economic landscape.

7 Feb, 2025
The Smart Investor’s Guide to Secure and Stable Returns with Fractional Ownership

The Smart Investor’s Guide to Secure and Stable Returns with Fractional Ownership

Investing in commercial real estate has long been a privilege reserved for institutional investors and high-net-worth individuals due to the substantial capital requirements involved

26 Dec, 2024
Benefits of Fractional Real Estate Investing

Benefits of Fractional Real Estate Investing

Fractional real estate investing, or Fractional ownership, is the new Buzzword in the Indian real estate market, democratizing the way real estate investment  is perceived in India.

27 Apr, 2023
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FAQs

Investing in commercial property can be incredibly profitable, with location, market trends, and property conditions being key factors to consider. Prime office buildings, multi-family residences, and busy retail spaces are among the most lucrative options.