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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.

Commercial Real Estate
Properties For Investment

On Sale
35%
Funded
property image
property image

French Listed Tech MNC

Thane (West) Mumbai

Asset Value₹54.66 Cr
Entry Yield8.75%
Expected IRR15.16%
Tenant
tenet-img
On Sale
35%
Funded
property image
property image

French Listed Tech MNC

Thane (West) Mumbai

Asset Value₹54.66 Cr
Entry Yield8.75%
Expected IRR15.16%
Tenant
tenet-img
On Sale
89%
Funded
property image
property image

London Listed MNC

Langford Road - CBD Bengaluru

Asset Value₹28.8 Cr
Entry Yield8.75%
Expected IRR15.12%
Tenant
tenet-img

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.
Benefits of Fractional Real Estate Investing in 2023

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Impact of Covid-19 on Commercial Real Estate Investment

Impact of Covid-19 on Commercial Real Estate Investment

The Commercial real estate sector in India was significantly affected by the Covid-19 outbreak. Property transactions came to a near-halt when the nation went into a complete lockdown during both waves. 

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REITs v/s Fractional Ownership | What should you pick & why?

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The Indian commercial real estate market is expected to witness a surge in demand for more reasons than one. Indian Prime Minister Shri. Narendra Modi has set up a vision for the country to become a five trillion-dollar economy by 2024-25. To achieve this, the government has been implementing various programs such as ‘Make in India’ and offering

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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.