Property is the core of any financial holding, if bought at the right price and location. The real estate market is moving towards a positive direction, so investors are out trying to get the best deals and making profits at a later stage. The trend is to invest in commercial property, as it is an asset which will give you good returns in the long run. The positive monthly return in commercial properties promises a regular cash flow, so the investor is not solely dependent on appreciation to make profits.
In India, real estate has always been considered a good investment option. But because of poor economy and sky high prices this sector faced a lot of flak. But now it is seeing a boom again. The old formula of investing in residential real estate is not working anymore, the escalating prices of residential market and the low appreciation has changed the scenario.
For people looking to invest in real estate today investing in commercial properties is a better option than investing in residential real estate. Investing in residential is slightly risky as to the long time taken for appreciation. Commercial properties have been in surplus and hence the rates are lower as compared to residential. Also this segment holds for appreciation and regular income through rentals. Investing in commercial space requires much larger investment than residential, and traditionally this is why commercial real estate was the playground for HNIs and big time investors. Recently even the retailers and small time investors are also into it.
Today the commercial property investor can look at different ways to invest here. One option is buying outright or you can buy shares of a developer or you can invest in funds which deal with commercial property. RIETs are the new route everyone is looking at.
‘Achhe Din’ Impact- With the new government at the center, there is a lot of confidence in the investor and a sense of security to top it. With the FDI becoming a reality the new investor is confident about the strengthening of the sentiment of this market. Campaigns like ‘Make in India’ have seen a lot of inflow of money and hence the demand for commercial estate.
The ‘Start-Ups’ Boom- With India awakening to the new start-up concept, with a lot of investments coming in from all the corners of the world and also from domestic quarters, a lot of demand for commercial premises has gone up in Tier 1 and 2 cities.
The Price Is Right- The commercial property prices are still low as compared to residential estate and hence commercial estate is in big demand by the investors. Better returns and the RIETs route have further opened new avenues for the investor in the commercial field. RIETs have opened up new options for small time investors to invest in real big time real estate ventures.
Today investing in commercial sector has emerged as a prudent option for people who have enough money to invest in real estate equity. The monthly cash flow via rental returns is a boon for many.
Read More About…………….Why is it a Good Time to Invest in Commercial Real Estate of Delhi NCR