Is this the Best Time to Invest in Mumbai's
Commercial Real Estate Market?
Knight Frank's recently released Office Market Update-Q3, 2021, reported a substantial uptick in India's office transactions in the third quarter of 2021. The growth was recorded despite the looming threat of a third wave that continues to keep a sizeable population working out of their homes.
According to the report, the total office space absorbed across eight major Indian cities (including Delhi NCR and Mumbai) was 12.5 million sq. ft. in the third quarter. The figure represents an astounding 168% year-on-year growth, attributable to a mix of factors, including better demand from the IT sector, a gradually recovering economy, and the workforce's return to offices, even though partially in most cases.
Speaking particularly of the Mumbai market, office leasing in Mumbai rose to 1.2 million sq. ft. in September 2021 from 1 million sq. ft. during the same period last year. Breaking the data quarter-wise, it has been reported that Mumbai accounted for nearly 25% of pan-India leasing, which is the highest across the top 7 cities.
If your plan is to invest in commercial real estate, you can consider adding a slice of Mumbai to your investment portfolio through fractional leasing. Though the Mumbai real estate market has been traditionally reserved for HNIs, technology-based platforms like WiseX are popularising the concept of fractional leasing, allowing you to own a part of a pre-leased commercial property with assured rental returns.
WiseX allows you to purchase a part of commercial office space in a city like Mumbai or Pune by paying a predetermined entry fee. The platform also ensures that the investment is secured through an instrument called fractional ownership deed while giving you complete control over the property's usage and rental income.
A Booming Opportunity Amidst Crisis
Metropolitan cities such as Mumbai, Pune, Delhi has always been hot market to purchase real estate, and the sentiment has only grown stronger during the pandemic. Therefore, many experts believe this is an opportunity to purchase real estate at discounted rates before the prices reach the erstwhile levels again.
For investors who are planning to diversify their portfolios in the commercial real estate segment, WiseX offers a suitable opportunity to invest in Grade-A office space strategically situated in the heart of these cities. The company has a well-diversified investment portfolio and offers hassle-free exit options.
So, if you're looking for an investment opportunity that is safe and has the potential to give good returns in the long run, consider fractional leasing with WiseX. With the platform, you can own a slice of Mumbai's commercial real estate market, right from the heart of Bandra Kurla Complex to Lower Parel.
With a minimum investment of just 25 lakh rupees, WiseX gives you a share in one of India's most strategically located office spaces with an average yield of more than 10%.
Why Fractional Leasing?
The 'Hub & Spoke' model has become increasingly popular in the post-pandemic world. Instead of investing their money in a single asset, fractional ownership allows smaller investors to diversify their portfolios with commercial real estate without stretching themselves too thin.
The benefits of managed leasing include long-term tenant stability, dual protection from managed leasing partner and sub-tenant, vacancy risk mitigation, superior asset upkeep, high stickiness, and rental assurance, as the managed leasing partner is responsible for the rental payment irrespective of subtenant vacancy.
The typical office space leasing transaction is largely hassle-free, with no role for the end-user. Neither are there any hidden costs involved. All you need to provide at the time of investment are your KYC documents, PAN card copy, bank statement, Aadhaar card copy and an attested photograph. At the same time, WiseX takes care of everything else.
WiseX offers a variety of real estate investment options, including opportunities in offices, retail spaces, warehouses and display centres that support the logistics industry.
Of late, Mumbai has been attracting significant investments from global FMCG companies looking to set up their base in the city. With WiseX's extensive experience in commercial real estate transactions and its sound understanding of the local market, it provides an excellent opportunity for investors to capitalise on.
The properties are strategically located in some of the most sought-after commercial areas in the city. The commercial real estate market is poised for rapid growth owing to several factors, such as:
Fast growth in income levels and growing consumption by Tier-1 population.
Increasing foreign investment in Indian commercial real estate.
Rising urbanisation and the consequent need for more office and retail space.
The launch of several innovative real estate products, such as REITs and InvITs.
Therefore, investors who are looking for long-term capital appreciation along with a steady income stream should consider the option of fractional leasing.
Overall, discounted prices and low-interest rates also make fractional ownership an opportune time to invest in a rapidly recovering real estate market that's in for a potential boom. In addition, WiseX's investment guidance and assistance throughout the process of fractional leasing provides immense value to the end-users, who find themselves with a relatively undemanding and hassle-free way to invest in commercial real estate.
