Businessmen feel that contrary to the popular belief, real estate is not always a risky gamble provided the investor is well informed about market conditions, his requirements and his finances.
Considering all of this, a commercial property is the most stable asset and attraction in real estate market today.
It is felt that investing in commercial properties is more profitable than residential properties.
There are multiple reasons to believe so:
The ready to use commercial properties are wisely priced as compared to residential properties. It can only go up as construction and land cost is increasing for new projects, thus pushing prices upwards for ready to move properties.
Commercial investment fetches higher rental value as compared to residential investment.
Commercial Developers are offering very lucrative plans such as Assured Return on investment till possession, Lease Guarantee for the property post possession, Buy back options, Possession Linked Plans.
"Cities like Mumbai, Bangalore, Hyderabad, Delhi, Noida and Gurgaon are the hubs for commercial properties. With major corporate offices and multinational companies opening their branches in these locations, investment in commercial real estate will be highly beneficial both in short and long run," said Jetesh Prasher, CEO of GenX Deals.
GenX Deals is a renowned web portal focusing of information related to various commercial projects and one stop for all destinations for real estate related information.
We are all aware of the fact that real estate market is going through a consolidation phase, thus investment in commercial real estate will prove immensely beneficial for both who are looking to have regular monthly income from leasing their commercial properties or those who want to use the space for their own business and saving on monthly rent thereby.
"With the new government, more thrust has been made on reviving business sentiment. Proposals like increasing foreign direct investment limits, real estate investment trust and smart cities projects will bring increase flow of money and demand for commercial properties. We are getting very high volumes of business from developers engaged primarily in development of commercial projects," Akash Kohli, Marketing Director of GenX Deals, added.
The return on investment is calculated in two ways in a commercial property, one being the rent which is approximately 8-9 percent per annum of the cost of the property plus capital appreciation which is approximately 10 percent annually thus giving a stable return of 18-19 percent per annum.
For example a shop in a commercial complex costing about one crore shall give a rent of Rs 75,000 per month plus its cost shall increase to about 1,25-1.30 crore within a time fame of three years. Whereas yearly rental yield on residential properties hover close to mere three percent.
Explaining the Delhi NCR commercial real estate market, Jetesh Prasher also said that Delhi NCR has highest concentration of under-construction real estate projects in the country, roughly about 33 percent of the total value.
"Gurgaon has already proved to be a hot favourite for commercial property investors. New projects are also budding in Gurgaon, Noida, some pockets of South Delhi which will be prime locations for corporate offices. Thus, investors in commercial properties are likely to get greater profit margins in days to come," he added.