Commercial Realty Getting Higher Investment Than Residential Now

New Delhi: Commercial real estate in the country has been receiving steady investments since 2016 and residential segment has been eclipsed in term of both quantum of investment and number of deals, according to a report by Federation of Indian Chambers of Commerce & Industry (FICCI) and property advisory firm Vestian.

“Factors such as availability of Grade A commercial space, fairly reasonable rentals coupled with lower vacancy levels have led the commercial segment to emerge as the investors’ favourite asset class in recent times,” the report says. 

In sharp contrast, the residential segment has been on a declining trend, which can be attributed to the slowdown in the residential market owing to several stringent factors, particularly relating to the reformatory measures impacting the market players. Besides, other issues such as liquidity crunch, delayed projects and reduced buyer interest have created a lull in the residential market. 

The number of deals pertaining to the residential segment has been spiraling downwards at an alarming rate since second half of 2016. From a high of 41 deals inked in second half of 2016, the segment has reduced to just nice deals in first half of 2019.