Is Commercial real estate the best investment in the future?
Confused about where to invest in the real estate industry? If commercial property is your investment in the future then you are on the way to high profits. Over the years the commercial real estate has gained steady demand and higher return value
In 2019, India’s first three quarters saw commercial realty attracting the most private equity investments of $3 billion. The growth is such that even NRIs have been constant investors in Indian commercial property since the higher returns easily overlap the high-cost purchase.
Residentials are usually bought for self-use and at the same time, it takes a longer period for its value to increase. While compared, commercial space is a stable-profit option with high rental value..
However, 3 points directly affect the value of the commercial property and considering them before buying can help you understand your investments better.
1) The most influential factor is the Location. Every business seeks a location of great connectivity and market trends. It is beneficial to invest in areas of low vacancy so there is enough capital appreciation leading to higher rent. If the area attracts people towards it then it is considered to successfully attract more business.
2) Get some insights about the demand-supply rate of the location. A constant balance or the leans towards more demand is appropriate for you to get a higher return. Mostly, prime areas or the micro-market are perfect areas to invest in. They are in huge need of supply due to the ever-growing market demand.
3) Fine infrastructure and ambience of the commercial spaces grabs customers’ eyes. Modern design, larger lobbies, business amenities and grade of the building accounts directly to the space’s value. Commercial spaces of extreme quality exhibit a positive attraction for both businesses and buyers.
