Benefits of Investing in Commercial Real Estate Post Covid 19 crisis

Even with the doom and gloom being prognosticated for many industries as the result of the spread of COVID-19, there are three reasons commercial real estate should look to the silver lining!

Let us checkout few pointers:-

1. Any stock market investors escaping the equity markets may choose to start investing in real estate. Well, why wouldn’t they invest in Commercial Real Estate? After the hurried downturn that’s happened in the last few weeks, it only appears legitimate that some would even think of pulling the money out of the stock market and invest it in a lower-risk type of investment.

2. From the prospect of governing norms to push an economic revival, the measures stated aim to maintain sufficient liquidity in the system, promote bank credit flow and ease financial stress. This relief is now also allotted for NBFCs; loans by NBFCs to commercial real estate will get the identical relief. Global manufacturers have begun conversations with Indian firms to traverse the possibility of shifting a part of their supply chains from China as they seek to diversify their services following the covid-19 outbreak. Around 1,000 foreign companies are involved in discussions at various levels with the Indian authorities. At least 300 of these companies are actively seeking composition plans in sectors such as mobiles, electronics, medical devices, textiles and synthetic fabric, according to top government sources. This will lead to the rise in commercial investments in India. Also, NBFCs can allow carefree NPA classification to their borrowers and NBFCs can stretch realty loans by one year if projects delayed on reasons beyond control.

3. If there is heightened desire for Commercial Real Estate and the interest rates remain low, the logical result will be the capitalization rates will continue to reduce even considerably than they are right now. This means that also if a real estate investor doesn’t refinance his rental properties, the benefit of his real estate will still move up as cap rates continue to decrease. So the bottom line is that those of who have invested in commercial real estate will involuntarily benefit from this whooper pandemic event.

Hence, probably the best investment option which has left during this crisis is the real estate sector. If studying about the other financing options such as stock markets, mutual funds, gold & jewellery, real estate is the guarded option for investment with an assured good ROI in the future!

Spectrum Metro is an ideal commercial high street project with retail shops, cinemas, and food courts, multiplex and serviced apartments. The phase 1 of the project is soon nearing its possession. The serviced apartments and food court have fantastic offers that assure lease guarantee. This will add value to the investors who are investing in the project. Spectrum Metro is one such developer who commits to giving the best to the customers at brilliant costs. Avail the best offers, & get assured gifts on booking your space in Retail Spaces, Serviced Apartments, Food Courts, and Multiplex & Office Spaces. It’s time to multiply your investments & get set go for a promising future.

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Divyansh

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