Commercial real estate more lucrative than residential
Real Estate

Commercial real estate more lucrative than residential

Commercial real estate demand in India has risen, and is at its highest since the Covid pandemic. The return on investment (ROI) in commercial real estate is “comparatively higher than the residential market” and established players are actively seeking collaborations with local developers to launch new projects as joint ventures, said Ravindra Pai, Managing Director, Century Real Estate.

“In office space leasing, tech occupiers were key drivers of the aggregate market leasing activity in July 2022 with a 53 per cent share. Banking, financial services and insurance (BFSI) had a share of 18 per cent,” Pai said in an interview. The company is planning to foray into commercial real estate in FY23, along with eight new launches in the residential segment in the pipeline.

“In the years preceding the pandemic, the ticket size Rs 60-80 lakh was the sweet spot in Bengaluru. Following the pandemic, the industry is witnessing strong demand from Grade A players in the plotted segment in this price range, as well as luxury homes,” Pai said.

The other real estate asset classes that are attracting investors today are warehousing and data centres, which are seeing a steady increase in demand. “We foresee that more investments will be made here in the next 3-5 years,” he said.

See also:
Casagrand forays into residential construction
DDA-RERA tussle ends as 18 projects get registered

Commercial real estate demand in India has risen, and is at its highest since the Covid pandemic. The return on investment (ROI) in commercial real estate is “comparatively higher than the residential market” and established players are actively seeking collaborations with local developers to launch new projects as joint ventures, said Ravindra Pai, Managing Director, Century Real Estate. “In office space leasing, tech occupiers were key drivers of the aggregate market leasing activity in July 2022 with a 53 per cent share. Banking, financial services and insurance (BFSI) had a share of 18 per cent,” Pai said in an interview. The company is planning to foray into commercial real estate in FY23, along with eight new launches in the residential segment in the pipeline. “In the years preceding the pandemic, the ticket size Rs 60-80 lakh was the sweet spot in Bengaluru. Following the pandemic, the industry is witnessing strong demand from Grade A players in the plotted segment in this price range, as well as luxury homes,” Pai said. The other real estate asset classes that are attracting investors today are warehousing and data centres, which are seeing a steady increase in demand. “We foresee that more investments will be made here in the next 3-5 years,” he said. See also: Casagrand forays into residential constructionDDA-RERA tussle ends as 18 projects get registered

Next Story
Infrastructure Transport

MoRTH to Frame IRC Norms for New-Age Machines in Highway Work

The Ministry of Road Transport and Highways (MoRTH) has decided to formally adopt Automated and Intelligent Machine-aided Construction (AIMC) for highway projects, aiming to accelerate execution and ensure timely completion. In line with this, MoRTH announced that the Indian Roads Congress (IRC) will develop new guidelines based on feedback from contractors and concessionaires actively involved in these projects.So far, MoRTH has sanctioned at least 16 highway projects where innovative construction equipment will be deployed. Additionally, the ministry is awaiting Cabinet approval for 10 more ..

Next Story
Infrastructure Energy

SECI Extends Green Ammonia Bid Deadline to 30 June

The Solar Energy Corporation of India (SECI) has extended the bid deadline for its green ammonia tender to 30 June 2025. The tender was issued under the SIGHT Scheme - Mode 2A, Tranche I, to supply 7.24 lakh tonnes annually to 13 fertiliser plants.As the implementing agency under the National Green Hydrogen Mission, SECI will enter long-term offtake agreements with selected producers, providing 10-year commercial certainty to encourage market development for green hydrogen derivatives. ..

Next Story
Infrastructure Urban

India Launches First Maritime Sector NBFC

Union Minister Sarbananda Sonowal recently inaugurated Sagarmala Finance Corporation Limited (SMFCL), India’s first NBFC dedicated to the maritime sector. Formally registered with the RBI on 19 June 2025, SMFCL evolved from Sagarmala Development Company Limited.It will address financing gaps for ports, MSMEs, startups, and maritime institutions, supporting shipbuilding, renewable energy, cruise tourism, and education. The move aligns with India’s Maritime Amrit Kaal Vision 2047 and aims to catalyse innovation and sustainable logistics growth.Union Minister of State Shantanu Thakur emphasis..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?