Three Reasons Commercial Office Real Estate Can Transcend Economic Uncertainty

Swapnil Agarwal is the CEO of real estate firm Nitya Capital and Karya Property Management as well as the Founder of non-profit Karya Kares.

Mark Twain once said, “Buy land; they’re not making it anymore.” For years, many people thought of real estate as a haven for investments. However, during the 2008 financial crisis and now during the economic uncertainty associated with the Covid-19 pandemic, some people have questioned that belief. With a portion of the workforce staying home, the demand for commercial office space has decreased and properties have been devalued. But I believe that the pandemic’s effects on commercial office real estate will ultimately be short term in nature and that it can be a valuable investment if you take a long-term perspective.

As a professional real estate investor, I’ve compiled a list of three reasons commercial office properties can transcend economic uncertainty as a long-term investment.

1. It Can Pay In Dividends

Like any investment, commercial office real estate inherently has risks. But it has one major reward in the form of potentially considerable monthly cash flow. In addition to any capital gains you may receive when you sell the office property, you can regularly

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Reduced real estate premiums to generate economic activity worth Rs 10 lakh crore in MMR: CREDAI MCHI



a bridge over a body of water with a city in the background: Reduced real estate premiums to generate economic activity worth Rs 10 lakh crore in MMR: CREDAI MCHI


© Vandana Ramnani
Reduced real estate premiums to generate economic activity worth Rs 10 lakh crore in MMR: CREDAI MCHI

Maharashtra government’s decision to reduce real estate premium by half is expected to generate economic activity worth Rs 10 lakh crore in MMR, real estate industry body Credai MCHI has said.

CREDAI MCHI also estimates that the premium reduction will help residential real estate new launches make a comeback in Q1 of 2021, to almost 100{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} of pre-Covid level (Q1, 2020). Premiums and approvals attribute to approximately 30{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} of project cost, according to CREDAI MCHI research.

The move is also expected to make housing more affordable for homebuyers in the region.

MMR witnessed over Rs 5 lakh crore worth of real estate being sold and registered in the quarter ending 2020, according to CREDAI MCHI research.

The last quarter also witnessed a growth of more than 50{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} in terms of number of units sold as compared to the corresponding quarter of 2019, signifying the increase in demand for residential properties in MMR.

“Maharashtra Government’s decision to reduce the real estate premiums by 50{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} in the state is a monumental decision for not just the real estate sector but also in

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