Bengaluru sees growing interest in alternative real estate investments like senior living and co-working spaces, as investors seek avenues for wealth creation beyond traditional residential investments.
“Bengaluru has witnessed a growing interest in new real estate investments like senior living and co-working spaces. For instance. The evolving market for senior living facilities in India presents a lucrative opportunity for developers and operators. With a limited supply of senior living options in the country, investors can tap into this gap and potentially achieve substantial rewards,” said Navin Dhanuka, MD & CEO, of Aris Unitern RE Solutions.
The shift towards these non-traditional real estate ventures reflects a strategic move, steering away from mutual funds, bonds, and conventional assets, said Shesh Rao Paplikar, Founder &CEO, of BHIVE Group.
The investor landscape is evolving, driven by a pursuit of higher returns and a keen understanding of emerging market dynamics
“Forecasts suggest that over the next decade, alternative asset classes will command substantial investments, posing formidable competition to established financial instruments,” said Shesh Rao Paplikar.
Recognising the growing demand for quality senior care, investors are increasingly drawn to the sector, expecting around 8-10% rental income with yearly escalations, added Navin Dhanuka
Industry experts believe that the advantages of real estate investment extend beyond monetary gains, including passive income, stable cash flow, tax benefits, portfolio diversification, and the strategic use of leverage to enhance returns.
Additionally, the real estate investment trusts (REITs) offer an indirect yet accessible way to invest in real estate, allowing individuals to benefit from property income and appreciation without direct ownership responsibilities. REITs provide liquidity and portfolio diversification in the real estate market, added Navin.
Meanwhile, according to Colliers India Report, the 2023 India office market has culminated on a spectacular note with 58.2 mn sq ft of gross absorption across the top 6 cities. The last quarter of the year witnessed the highest-ever demand for office spaces in India, with all three southern cities of Bengaluru, Chennai, and Hyderabad registering the best performance since the COVID-19 pandemic. While Bengaluru and Delhi NCR drove leasing activity during 2023, accounting for about half of the total demand for office space in India, Chennai made it to the top three list for the first time.
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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