Why investors are shifting to tier-II cities for higher commercial real estate returns
New Delhi, July 14 -- For years, India's commercial real-estate playbook was straightforward: buy an office in Mumbai, Delhi or Bengaluru, sign a corporate tenant, and collect steady rental income.
That equation is changing.
As office rents and land prices climb in the country's biggest cities, companies are increasingly expanding into tier-II markets where operating costs are lower and talent is more readily available. The shift is creating new opportunities-and new risks-for investors looking beyond the traditional commercial-property hubs.
Over the past four years, average office rentals across major metropolitan markets have risen nearly 35%, according to tenant-only commercial real-estate firm Vestian. Rising occupancy costs are p...
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