Good Time to Invest in Maharashtra Commercial Real Estate

Sudarshan Lodha, Co-founder, Strata The Maharashtra government has reduced stamp duty on housing units from 5 percent to 2 percent until December 31, 2020, to boost the stagnant real estate market hit by the COVID-19 pandemic. Post-December 2020, the government will levy three percent stamp duty on residential properties until March 31, 2021. This is expected to translate into huge savings especially in case of commercial real-estate Multinational companies are eyeing India as a hub for Data Centre Offices, especially in cities like Mumbai, Delhi. The Covid-19 pandemic has changed the people’s mind-set and the overall outlook towards work culture however, this perception is expected to be short-lived The current economic scenario is an opportunity to transact at a discounted price for bulk office spaces and large corporates are eyeing it. From May’20 to July’20, India has witnessed deals of approximately 11 million Sq.Ft for commercial real estate and another 8 million Sq.Ft is expected to be absorbed in the future. Also with economy unlocking, companies have started seeing stellar quarter-on-quarter growth. Real estate majors DLF reported over 98 per cent recovery in office rentals in the July-September quarter and is certain about demand and growth.  Other real estate developers are now reporting similar numbers. Real Estate Investment Trust (REIT) is gaining momentum in India after the first IPO of Embassy Office Park REIT, followed by Mindspace Business Park REIT. Corporate giant Tata Realty & Infrastructure (TRIL) are planning to list its Real Estate Investment Trust (REIT) which will add around 20 million sq ft of commercial assets in the next couple of years. Considering, mumbai is a growth opportunity, It is the best time to invest in commercial realty in Mumbai. To conclude, Commercial real estate segments like office spaces, IT Parks, data centres, warehousing and logistic parks will experience constant rising demand keeping a long-term horizon.