How Investing In Commercial Real Estate Is A Smarter?

By: | In: Property Investment | Last Updated:

real estate in India


Investing in the commercial real estate in India, the present scenario is a highly lucrative option. Even if you invest in a small piece of property, the returns in turn are very high. Property investors, these days are eying more and more on the commercial properties as they promise good profits. But, investing in real estate whether commercial or residential has its own set of risks. Especially, when it comes to commercial real estate investment, then the risks are higher as you are obviously investing in a larger piece of property. Read this write up ahead to know the best measures for maximizing your profits while investing in commercial sector and reducing the risks associated with it.


Risks Associated With Commercial Real Estate Investment:


  • There is no assurance that the investment will achieve the investment objectives.
  • Investing money in wrong locations that are not competent to draw investors and masses towards it.
  • Capital risk
  • Inflation risk
  • Operational risk

Owning of too many commercial properties altogether brings in the concerns like renting, maintenance, and zoning for the investors. But, apart from this, there are many factors that make the commercial sector worth investing.


Which Factors Make Real Estate Investment In Commercial Sector Preferable?


  • Lower interest rates
  • Burgeoning income and better job prospects
  • Higher disposable income
  • Opening of FDI in retail sector
  • Changing consumer behavior

The capital value of commercial spaces has undergone a paradigm shift in the last one year. It is increased by 40%, due to sudden surge of IT / ITES and BPO sector across major metros in India. Besides, investment in commercial sector opens up many gateways for the investors like land for future development, condominiums, shopping centers, trailer parks, and other rental properties. So, the best way, while investing in commercial real estate is to acquire a lease agreement that will ascertain an income flow and will also allow you to retain the property.

Share on

Rate it

  (Average Rating per Visitor : out of 5, reviews)

10 Comments

  • Admin

    jay

    23 December, 2017 at 5:16 am

    I'm not sure where you are getting your information, but great topic. I needs to spend some time learning much more or understanding more. Thanks for magnificent info I was looking for this info for my mission.

    Cancel Reply

  • Admin

    elit

    22 December, 2017 at 3:27 pm

    Having read this I believed it was extremely informative. I appreciate you finding the time and effort to put this informative article together. I once again find myself personally spending way too much time both reading and commenting. But so what, it was still worthwhile!

    Cancel Reply

  • Admin

    tina

    27 November, 2017 at 12:38 pm

    Very quickly this web site ԝіll be famouѕ among all blogging and site-buildіng people, due to it's ɡood articles or reviews

    Cancel Reply

  • Admin

    rajesh

    23 September, 2017 at 5:53 am

    A lot оf thanks for all your valuable work on this site. Dеbby takes pleasure in working on research and it's really obѵіouѕ why. Almost all know all about the powerful means you make rewarding guidance bʏ means of the web blog and even attract contribute fгom other individuals on this matter thеn our own child is studying a great deal. Enjoy the remaining portion of the new year. You are always conducting a really greаt ϳob.

    Cancel Reply

  • Admin

    Ramsharan Yadav

    17 November, 2016 at 12:29 am

    Excellent, what a weblog it is! This blog gives helpful data to us, keep it up.

    Cancel Reply

  • Admin

    ravi shankar

    14 February, 2012 at 8:59 am

    Today, I visited your website and found it to be very informative. I'm highly pleased to see the comprehensive resources being offered by your site.

    Cancel Reply

  • Admin

    Commercial Property in India

    08 December, 2011 at 10:07 am

    Nice informative post. Thanks for sharing a deep insight on the trends of commercial property.

    Cancel Reply

  • Admin

    jack0044

    23 May, 2011 at 9:13 am

    Investment is now must but if u choose the right one then u will get more returns. Thanks for sharing this nice info.

    Cancel Reply

  • Admin

    wakacje last minute

    20 May, 2011 at 6:41 am

    Fantastic news! Thanks for the info, love to hear more...

    Cancel Reply

  • Admin

    m

    17 September, 2010 at 5:49 am

    Ya. Its very correct that investment in commercial sector consists of higher risk. That is why the common people does not invest in commercial properties. Thanks for this nice post!

    Cancel Reply

  • Add Comment