Commercial real estate is one of the most sought-after types, with solid potential for investment and Return on Investment. This is one reason why the sector needs to be regulated from time to time. This blog will discuss the different commercial real estate governing bodies that regulate commercial property transactions in the country. Read on!
The real estate sector in India is one of the biggest in the country, with a large contribution to India’s Gross Domestic Product (GDP). The sector collectively contributes around 6.5 to 7 per cent to the GDP of the country of the different real estate types, including residential, industrial, commercial, and land, commercial real estate is one of the most sought-after types simply for the solid Returns on Investment it offers.
Commercial real estate is a fruitful investment irrespective of whether the market is bullish or bearish. This is one of the top benefits of making a commercial real estate investment – the property will only appreciate with time, no matter the market conditions. In addition to this, a commercial real estate investment will help you build substantial equity quickly while also offering you a steady income and cash flow. These benefits make commercial real estate an extremely attractive investment avenue.
DID YOU KNOW?
According to Square Yards, India’s real estate market size in 2021 was about $200 billion, and it is expected that the real estate industry in India will achieve a market size of US $ 1 trillion by the end of 2030.
Being part of such a huge field, commercial real estate agents and investors sometimes tend to not adopt fair trade practices. This is one of the main reasons real estate governing bodies actively look out for malpractices in the commercial real estate business. In this blog, we will discuss what a commercial real estate governing body is and the top commercial real estate governing bodies in India. Keep reading!
What Is A Commercial Real Estate Governing Body?
A commercial real estate governing body is a government or a non-public organisation that regulates the trade practices involved in the industry. Commercial real estate governing bodies legally regulates business and help address grievances while also providing customers with the necessary guidance in navigating through a commercial real estate purchase.
What do commercial real estate governing bodies do?
- They govern the various commercial real estate transactions and impose legal requirements, restrictions, as well as conditions on commercial real estate businesses and organisations.
- They keep a constant watch on the rules and policies passed by the government and revise standards accordingly.
- They are involved in inspecting and auditing various commercial real estate deals and transactions.
- Sometimes, they also take action on the concerned party in case of violation of the commercial real estate regulations.
- They educate the public and commercial real estate investors on commercial real estate investment, the various policies related to it, their rights, and the process of purchase and registration of a commercial property.
- A few commercial real estate regulatory bodies also offer guidance on choosing and buying a commercial real estate property.
- They promote fair trade practices and take up issues and address customer grievances. They conduct hearings as well in order to address the various issues that crop up in the industry.
- They also offer normal, day-to-day administrative services.
These are a few functions of the commercial real estate governing bodies, not just in India but all around the world. There are three major bodies or councils that are responsible for regulating the commercial real estate sector. We will discuss more them in the coming section.
Top Commercial Real Estate Governing Bodies You Must Know
Commercial real estate regulatory bodies ensure that there is order and transparency in the industry. As discussed earlier, they focus on maintaining fair trade practices and protecting customers and educating them as well as commercial real estate agents about their rights and responsibilities. India has three major bodies that govern the various real estate activities across the country, including those of commercial real estate.
1. National Real Estate Development Council – NAREDCO
Established in 1998, under the aegis of the Ministry of Housing and Urban Affairs, the Government of India, NAREDCO is one of the most significant real estate associations in India. It is a link between the government, the real estate industry, and the general public and helps address their concerns and find solutions for the various issues they may face. They also aim to raise the standards of building, construction, and marketing in the real estate sector. They are active participants in formulating national policies for fiscal reforms and are focused on effectively boosting economic development.
2. National Association of Realtors (NAR) India
NAR-India, established in the year 2008, is a non-profit organisation that aims to establish high standards and accreditation in the real estate industry, in addition to helping members in their professional development. NAR acts as the collective voice of Realtors in the country. Through its extension of educational support and resources, NAR-India helps over 30,000 realtors across the country to provide world-class services and create value for all the stakeholders in the industry. They also aim to facilitate just and proper dealings, thereby restoring the reputation of real estate agents in the community.
3. All India Real Estate Agents Association – AIREAA
Established in 2014, the All India Real Estate Agents Association (AIREAA) is a professional association for real estate agents in the country. They aim to provide real estate agents with the necessary guidance by becoming part of a legal governing body. They also work towards standardising business practices in the real estate industry and deal with disputes effectively through their dispute resolution cell. Their goal is also to establish and maintain, along with financing the conduction of seminars and carrying out research for the real estate business.
These are the three major regulatory bodies for commercial real estate and real estate at large. Chennai, a thriving city for commercial real estate, has its own regulatory bodies for real estate.
Here are the two most prominent Chennai-based commercial real estate regulatory bodies
Commercial Real Estate Regulatory Bodies In Chennai
1. Chennai Real Estate Agents Association
Chennai Real Estate Agents Association, CREAA, is a Chennai-based non-profit entity established in 1999. The association was started by real estate professionals for other real estate professionals so as to cater to the needs of corporates, businesses, and individuals in the field of commercial, rental, lease, retail, residential flats and real estate consulting. Affiliated to the National Realtors Association (NAR) – India, the association is now 120+ members strong and provides its services across Tamil Nadu.
2. Association for Real Estate Professionals – APPCC, Chennai
Abbreviated as APPCC, the Association for Real Estate Professionals is a real estate professional trade association. It is affiliated with the National Realtors Association (NAR), representing real estate professionals across India. The APPCC has members across Chennai city and its suburbs, across disciplines within the real estate industry. Its mission is to bring together real estate professionals under one roof, helping them to network with fellow professionals, learn, and equip themselves. The APPCC was established in 2017 and registered under the Societies Act.
It is essential you know about the various commercial real estate governing bodies before you go on to invest in a commercial property. The next section will discuss the things you should keep in mind when you invest in a commercial property.
Things To Keep In Mind When You Invest In A Commercial Property
The decision to purchase a commercial property is not an easy one, and if you are looking to invest in commercial real estate property, then here are a few things you should keep in mind –
- You must have your investment objective defined in order to determine why you want to invest and what you expect out of the investment you make.
- You must have thorough knowledge about the market condition and be aware of the various trends running in the market.
- You must consider your financial situation and set a budget for the investment you are about to make. This will help you determine how much you can shell out from your savings and how much loan you would need.
- You should carefully consider the types of commercial property available for investment and weigh their pros and cons before you zero in on one. Choose the one that best aligns with your investment goals.
- Consider your financing options with the help of your financial advisor before making the investment.
- Make sure you do your research about the location and choose one in a prime commercial area where demand for commercial property is high.
- You need to look for a reputed builder to buy the commercial property from.
- You must also check the documents required before you go ahead with the investment.
These are a few things you must keep in mind when you invest in a commercial property. If you are confused about where to buy commercial property, look no further than the Market of India. Being India’s upcoming largest wholesale and retail marketplace, Market of India offers a wide range of commercial spaces to choose from.
Invest In A Commercial Property In Market Of India Today
Market of India, located in the heart of the city, within SPR City, Chennai, is a first-of-its-kind organised wholesale and retail marketplace that acts as an extension of Chennai’s major trade hubs including Koyambedu, Sowcarpet, Parry’s Corner, Mint and Ritchie Streets, and more. With state-of-the-art amenities and world-class facilities, the marketplace offers an attractive avenue for your business’s growth.
Here’s why you should consider investing in a commercial space in Market of India –
- Market of India is expecting an estimate of 40,00,000 monthly footfalls, which is 40,00,000 potential customers for your business per month.
- Go digital with Market of India’s online marketplace that offers more than 1,00,000 commodities for sale.
- Market of India offers 20+ ancillary services that will provide your business with strong marketing support.
- Market of India’s Chamber of Commerce will give you the opportunity to network with international traders and logistics partners, thereby helping you take your business to the international market.
- Market of India offers a wide range of commercial spaces that will help you set up an office or a shop and grow your business. Choose from a wide range of office spaces, retail and wholesale spaces, and other types of commercial spaces that are best in quality.
If you are looking for a good-quality commercial property that will yield you attractive returns in the future, then Market of India is your go-to place. With the potential it holds for growth in all aspects, your business is sure to thrive in the Market of India. To know more about India’s upcoming largest wholesale and retail marketplace, visit their website.
1. What is commercial real estate?
Commercial real estate is the property that is used solely for business purposes. This includes office buildings, retail space, warehouses, and more. There are different types of commercial real estate, including office space, retail space, and industrial space. Office space is for traditional office work. Retail space is used for stores or other businesses, and industrial space is used for manufacturing or storage purposes.
2. What are the top governing bodies in commercial real estate?
NAREDCO (National Real Estate Development Council), NAR (National Association of Realtors- India), and AIREAA (All India Real Estate Agents Association) are some of the top governing bodies in commercial real estate.
3. How do these governing bodies regulate the industry and protect consumers?
Real estate governing bodies’ primary responsibility is to set standards of practice, regulate the industry, and protect consumers.