As we all know, in the situation of the COVID pandemic, most companies and offices allowed their employees to work from home. However, this culture was very beneficial for most of the company mostly IT companies but now after the pandemic, many employees and employers started working from the office and because of this many offices are being open and employees start working again from the office.
Now this time investment in commercial property is a better option for many investors. Below you will know the reason why this is the best time for commercial real estate investment.
Ensured High Return on Investment
Commercial real estate has always been a profitable arena of investment. It provides higher rental revenue for a prolonged period. However, the market for new residential properties in India is yet to show a firm sign of rapid growth.
Today, Only a handful of prime residential locations and metro cities are getting new leads. But cosmopolitan and small 2 & 3 tier cities and towns are still stuck in a deep slumber. So if you are here to sell, I would say you should wait until the market picks up its pace and shows some steady growth and appreciation in return.
On the other hand, the current state of the commercial real estate market in India is quite good. Despite the harmful effects of the pandemic, the market is yielding at an astounding rate, thereby promising growth in demand and sales.
Invest Where the Future is Secure
Many experts even predict that the estimated growth of residential real estate and commercial real estate will remain between 3 to 4 % and 8 to 10 %, respectively. And this difference in growth margin tells you how you should diversify your investment portfolio to get higher returns.
The future of commercial real estate properties for sale in India looks quite promising. The present state of market dynamics such as low property prices, easy availability of home loan facilities, low-interest rates, higher demands, and the national sentiment, all are all making the ground favorable for new property buyers and real estate investors.
The Indian Government is also trying hard to bandage the wounds! In Budget 2021, it has introduced a whole new set of relaxed debt financing norms to address the financial anomalies of the Real Estate Investment Trust(REITs) and as well as, the market. This itself is a well-calculated move, as it would allow the institution funding to enter into the commercial real estate assets, thereby ensuring higher ROI.
Steady, Stable & Secure Cash Flow
In India, the average period of leasing a commercial property ranges from 2 years to 10 years. It comes along with numerous advantages and benefits. First, It ensures continuous cash flow from regular rental extraction and produces secure and steady income for a prolonged period and that too on a regular basis. Above all, you do not have to worry about finding new tenants now and then. On the contrary, residential properties don’t give you these additional leverages. Often, they bear the brunt of irregular cash flow due to a short leasing period.
Easy to Upkeep & Less Maintenance Charge
While residential real estate projects usually focus on hundreds of lifestyle-based amenities and beautification aspects like swimming pools, gardens, open gyms and fountains, commercial office spaces and, retail properties for sale in India consider only quintessential amenities that are easy to maintain and help you to elevate your work output in many ways.
As a consequence, you will end up spending a vast amount of money to maintain your residential property. But on the other hand, commercial office spaces for sale in India do not adhere to this logic. Since the number of lifestyle-based amenities is less, the commercial properties for sale in India do not ask you to invest a humongous sum of money for their maintenance and preservation.
|Residential Properties||Commercial Properties|
|Dozens of lavish amenities-Requires frequent and higher maintenance charges!||Less Amenities-Only essential ones; reduced maintenance charges!|
|The owner has to bear the cost of the maintenance.||Tenants bear the costs related to maintenance and preservation.|
|No room for Triple net leasing agreements.||A Triple net lease agreement makes the tenant legally bound to pay for the maintenance, insurance, and taxes.|
High Demand Leads to Higher Growth
Indian and western societies are different from each other. And, that is why what may work in the west may not find its relevance in India. According to the latest report published by Anarock, Work from home will never be the new normal in India. Unlike western nations, a lion’s share of the Indian workforce or employees would depend on their office setups.
Because of the sheer size of families, smaller apartments, unreliable internet connections, and lack of privacy and equipment, Most of the skilled and semi-skilled job holders in India would eventually have to move back to where they were in the pre-pandemic era, which is their old office space set up. This indeed would keep uplifting the demands of commercial office spaces for sale in India.
A wise investor always knows how to see the big picture. He knows where to invest, how to invest, and when to invest. He makes his investment plans and decisions according to his past experiences, calculated risks, and proven statistical models which in turn, help him to evade bad times and makes him capable of predicting the future with higher accuracy.
For instance, Take a look at the total number of newly registered companies or businesses in the post-pandemic era and try to get a crux out of it. I am sure that you will be taken aback by the reality of the market, which in this case, shows signs of optimism and possibilities. According to the reports of the Central Registration Center, Almost 16000 new startups have registered their presence in India since the post lockdown period.
On top of that, various multinational corporations have also started to open their manufacturing hubs in India and consider India as the most suitable location to establish vital data centers, seeking large commercial offices for rent in Tier 1 and tier 2 cities and would boost the demand for pre-leased and rented commercial properties for sale in India. Such an astounding trend would surely increase the demand for newly built commercial office spaces
Now if you are interested in the commercial property investment in the Noida location, then WTC CBD Noida Sector 132 can be a better choice to invest in.