The Indian real estate sector is now a buyers’ market and developers are coming up with the latest ideas to cater to the needs of the investors. The rising demand for commercial spaces owing to increased economic activities has enabled developers to come up with more working/retail spaces.
Commercial real estate in India has attracted institutional investors (depending on developers, location and other factors) and HNIs. A minor retail investment has also been seen. REITs institutionalised the entry of retail investors by easing the entry barrier with a low investment sum. However, off late, sensing a huge opportunity, developers have liberalised this entry barrier further by facilitating retail investors to enter the highly lucrative commercial real estate segment and open avenues for supplementing their income through unlockable spaces. This has led to huge interest and investment flow.
The concept of lockable spaces refers to buying a property and getting keys or complete ownership over your investment. You can use it whenever or for whatever purposes you like. You can work from your own space or you can rent it out. The onus of the tenant lies with you. These options are best investments for those who want a physical space for businesses or to do their work. The property is registered on the buyer’s name and the buyer can choose to sell it off as per own wishes. The owner will be solely responsible for the sale and will get to decide what offer to accept. Furthermore, owner also has to pay charges for the maintenance and upkeep of the property
To suit the changing needs today, developers have now devised the concept of unlockable spaces for small and medium investors. With this concept, an investor pays a small sum for a space from which he gets a monthly return. The developer clubs such smaller spaces into a unit and leases it to brands. The rent generated therein is divided amongst these investors based on the size.
This gives investors an opportunity to invest/trade smaller sums in the booming commercial real estate segment and also allows developers to broaden their investor base.
For example, a retail investor, dabbling in stocks, gold and FDs, if given an opportunity to invest in a rent generating commercial property in Chandni Chowk, the busiest and most acclaimed shopping and trading hub in Asia, where there is no dearth of tenants and business, would jump at the opportunity. Unlockable space allows investors to make such informed and new choices in diversifying their investment. With a yield upward of 8% in commercial real estate, the choice of asset is important towards determining how much this can be maximised.
Several investor experiences have shown how retail investors have multiplied their earnings and accumulated wealth with the prudent use of unlockable spaces.