Real eState

Commercial real estate to continue to do well in 2020 – The Financial Express

Published

5 years ago

March 20, 2020

The real estate sector is facing tough times for some time now, but the commercial segment is still doing well and also getting the maximum attention of investors. In fact, 2019 saw a total PE inflow of $970 million into Indian retail, and commercial realty attracted the maximum private equity investments, totaling nearly $3 billion in the first three quarters. In the retail sector, vacancy levels have come down to 14 per cent in the calendar year 2019. Approximately 7 million square feet of retail space is expected to enter the market in the year 2020, thereby contributing to the overall robust growth of the real estate sector in India.

Growth in this segment is good as investors show great interest in commercial and recently NRIs have also started investing in this segment mainly because of lucrative returns. When we compare the investment in commercial with residential, then it can be said that returns from commercial are better. An increasing number of private equity funds showed interest in the commercial office space in 2018, which was followed by the same in 2019. And now with news of India’s first REIT trickling in, the trend of commercial office space having an upper hand in real estate assets will stay. There is likelihood of further infusion of liquidity in commercial property and developers will come up with more projects in this segment.

Related News

This segment, which includes industrial, retail and frontier segments such as co-living, is doing well because of good returns in the short and long term.The investors with real estate know-how diverted their attention towards the commercial real estate. Commercial office stock is likely to cross 600 million sq ft and office space leasing in major cities is expected to cross 100 million sq ft by 2020. Co-working spaces in major cities has seen a sharp increase as it reached around 3.44 million sq ft as compared to 1.11 million sq ft in 2017. With the government taking necessary steps for fueling the economy, the sector is likely to bounce back and continue with its good run.

The ease of doing business initiative by the government will have a positive impact on the market and things will improve soon. When we compare the investment in commercial with residential, then it can be said that returns from commercial are better. With the residential real estate becoming end-user driven, the commercial real estate has emerged as a more attractive investment proposition for individual investors as well as institutional funds. Due to the investment potential of commercial spaces, developers are also responding to the demand, which will automatically generate demand for residential. So the symbiosis of commercial and residential bodes very well for the real estate market. A good commercial property gives the average rental yield of 6%-10%, while the rental yield from residential property is 1.5% – 3.5%. The same holds true for capital appreciation in the current market scenario.

(By Sanchit Bhutani, CFO, Bhutani Infra)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Let’s block ads! (Why?)

Source link

Real eState

Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 days ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

Source link

Real eState

Here are some facts about British Columbia’s housing market

Published

1 week ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

Source link

Real eState

B.C. voters face atmospheric river with heavy rain, high winds on election day

Published

1 week ago

October 17, 2024

Anne Joseph

VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.

Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.

The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.

Wednesday was the last day for advance voting, which started on Oct. 10.

More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.

Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.

An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.

This report by The Canadian Press was first published Oct. 17, 2024.

Source link