Commercial or residential properties? How to get better bet in real estate investment?
India in this developed world always preferred as the great destination for seeking commercial properties. With the growing signs of India’s economy, the business sector is growing so fast. But, when it comes to taking a decision between commercial and residential investments, there has been always a big confusion among investors.
What you think is the better real estate investment bet? Most of the people prefer residential investment but actually, the commercial has many rewards. Many property experts confirmed that commercial property can give higher returns over residential, and can also give a steady flow of income.
Experts have confirmed that investment in commercial properties is more beneficial than residential. If you are investing in commercial properties, then you can get higher returns as compared to residential. However, Returns for both assets can be estimated by summing up their annual income offered and the capital appreciation.
India is preferable office destination from all over the world. According to a recent research, there is a huge difference between rental yields of both commercial and residential properties. Commercial properties offer 7 to 8.5 per cent annual income via rental yields. But, residential properties offer approximately 2 to 3 per cent annual income. Capital appreciation in case of residential properties is more. However, it is not enough to cover the annual income deficit.
In the past few years, the office space and its annual supply fell below the 40 million sq ft mark in India, which gives the clear idea of activity slowing down in the space of the real estate. However, after 2015, the supply was seen coming closer to the 40 min mark and this progress will continue to happen in a future couple of years. Therefore, it is better to invest in commercial properties during slowdown because they are crucially seen as rental yielding assets and a steady yearly income flow.
When it comes to investing in commercial properties, you need to do sound planning and research. Focusing right locations will make for a reasonable commercial reality bet and provides good rental returns. Finding a good location in commercial space has multiple benefits like ensuring the low likelihood of capital loss. Nowadays, banks are quite helpful in giving loans. So, it becomes easier in finding a tenant.
Locations with good returns
Office space has the biggest contribution to the growth of the economy of India. Searching a commercial property in Modinagar, Noida, Bangalore, Chennai, and Pune is quite beneficial as these areas have higher presence of IT companies, showing great demand throughout the year. So, if you are looking for profitable commercial properties in these cities, then you can get good rental yield and more profits per annual. And if you are choosing right location and you will maintain it, then you can get good annual rental yields.
Seeking commercial real estate firms
Hiring a professional commercial real estate firm will help in getting the best possible advice on how to make best possible negotiation on lease agreements which will keep and attract tenants. Everyone is aware of the fact that property owner should make a true balance between increasing rents and decreasing tenant turnover and vacancies. Turnover can be paying off a little for owners but they must ensure that space must be adapted to meet the specific requirements of various types of tenants.
Seeking commercial real estate firms is quite helpful to get clear guidance about various office spaces with fair tenant turnover. Nowadays, there are various companies that are offering great deals in the commercial properties. So, if you are looking for Commercial Property for sale in modinagar , or any other location, all you need to do is search a professional commercial real estate agent at that location.
The bottom line is…
Focusing on commercial properties is definitely a yielding plan. So, make sure you are planning investing in commercial property in right location. And if you are taking a help from real estate agents, make sure he has some good experience in his field of knowledge. Planning and searching are the most crucial aspect if you are investing commercial properties. So, proceed if you have well researched and planned about your investment.