By Mr. LC Mittal
Residential returns were good a few years ago, depending on the project’s location and amenities. Investors were counting on residential real estate capital appreciation, which has been positive thus far, but rental income, which has always been low, has troubled them. Due to the requirement for a good return in the short and long term, real estate investors have shifted their focus to commercial real estate, which is more appealing. In Tricity, there is a lot of interest in well-designed commercial spaces.
Many IT/ ITEs firms are attempting to rationalise their workforces, as well as optimise their office real estate holdings. These companies would combine their offices across multiple locations and relocate to areas other than tier I cities. This opens up new investment opportunities in the commercial sector. This increase in interest is also due to a shift in focus among NRIs and HNIs toward commercial real estate.
The emergence of the IT/ITEs sector, and world-class education and medical facilities, are the key reasons for Tricity’s growing popularity. Zirakpur – Ambala Road, Panchkula and Mohali are some of the most promising new investment destinations. Today, the city can brag on having good infrastructure and cutting-edge office campuses, which are attracting a sizable migrant population. Another major factor in putting Chandigarh on the real estate map is its continuously improving infrastructure.
To begin, a decent commercial property has an average rental yield of 6 per cent to 10%, whereas residential property has a rental yield of 1.5 per cent to 3.5 per cent. In the current market environment, the same is true for capital appreciation. In reality, when prices in large cities rise, tier II and tier III communities are seeing increased demand for commercial properties.
The projects in the Tricity region are experimenting with new ideas. For example, Motia Group’s High Street, which is located in the heart of Zirakpur on the VIP Road, which connects the two main national highways, NH-22 and NH-64, has created the Upper and Lower Grounds Floor Shop concept, which provides customers with additional frontage and accessible shopping space. Unlike the remainder of the building, the Lower Ground floor has a large frontage and access. The Royal Business Park of the Motia Group, located in Zirakpur on the Chandigarh-Ambala National Highway which are serving more than 150 office spaces are easily accessible by road and it offers affordable working space, thereby, meeting the demand for affordable Grade ‘A’ co-working spaces in and around tricity area.
Then there are projects like Motia Plaza, which is located on the Pinjore-Nalagarh National Highway and was meant to promote industrial development. It is a leading industrial area development that is transforming Baddi’s cityscapes with innovative new designs, high engineering and ethical standards, and a professional approach, and it focuses on affordable commercial spaces.
Zirakpur has helped the country’s commercial development. Guildford Square, on the other hand, is a commercial project on PR7, Airport Road, Zirakpur, which is a low rise high street project will usher in a new era by altering commercial investments and redefining current international lifestyle patterns. The retail location, which has a massive catchment of almost 1 million people, is a profitable enterprise with guaranteed returns. The commercial segment in Tricity is flourishing, and with NRI investment pouring in after the pandemic, the coming quarter looks promising.
