(Bengaluru, India) – Bengaluru’s real estate landscape is witnessing a fascinating shift, with investors increasingly venturing beyond traditional residential properties into alternative asset classes like senior living and co-working spaces. This trend reflects a strategic move towards higher returns and a keen understanding of evolving market dynamics.
The burgeoning population of senior citizens in India presents a significant opportunity for the senior living sector. Recognizing this gap, investors are drawn to the prospect of substantial returns, with experts like Navin Dhanuka, MD & CEO of Aris Unitern RE Solutions, citing the potential for 8-10% rental income with yearly escalations.
Bengaluru’s thriving startup ecosystem fuels the demand for flexible co-working spaces. Investors like Shesh Rao Paplikar, Founder & CEO of BHIVE Group, view co-working as a strategic hedge against conventional financial instruments, capitalizing on its potential for high returns and catering to the changing preferences of the modern workforce.
Benefits Beyond Financial Gains
Industry experts emphasize the diverse benefits of real estate investment, extending beyond pure financial gains. Passive income, stable cash flow, tax advantages, portfolio diversification, and the strategic use of leverage to amplify returns are some of the key attractions. Additionally, REITs offer indirect yet accessible entry into the market, providing liquidity and diversification without direct ownership responsibilities.
According to Colliers India Report, Bengaluru continues to dominate the office market, leading the pack with 58.2 million sq ft of gross absorption across 2023. Notably, all three southern cities – Bengaluru, Chennai, and Hyderabad – witnessed their best performance since the pandemic, reflecting an overall resurgence in the office space sector.