When it comes to creating asset class wealth, real estate investment seems to me the most profitable avenue. Some people like investing in residential whereas savvy investors give preference to commercial properties. Talking about the commercial investment in Delhi-NCR real estate market, it has certain complexities like liquidity issues, high ticket size, maintenance cost, transparency, etc. But many studies reveal the fact in the past few years; commercial market has been witnessing strong demand momentum due to series of benefits.
- Availability of Plethora of Investment Options – Unlike residential investment, plethora of options is available to invest in commercial market. These options range from land parcels, retail shops, virtual and lockable office spaces, among others. Unlike land parcels which demand huge amount of capital, retail and office spaces in small sizes starting from 200-300 sq. ft. are luring the attention of small investors as well.
- Higher Return on Investment – Commercial investing can earn higher return on investment as compared to residential options. As per one of the studies, “commercial properties in India yield 8-10% return as compared to residential properties rental yield which lies between 4-6% year-on-year basis depending upon factors like location, quality of asset, etc”. Thus it is clear that the rental income earned from letting out commercial properties is quite high as compared to apartments. This is quite true in the case in the case of commercial properties of Delhi-NCR. This gives more money in the hand of commercial property investor.
- Easy Financing Options – Residential properties only support traditional methods of financing like private money lenders, banks and NBFC’s. On the other hand, commercial properties in India are easy to finance by contemporary methods like taking help of investment groups, hedge funds, private equity firms along with traditional options.
A fact important to highlight that many builder ventures into commercial property however only a handful of them is able to emerge as a clear winner. Thus, it is advice to investor should invest money in those projects backed by reputed builders having sound reputation in the commercial property market. Moreover, if you are seeking professional assistance from agencies, rely on reputed real estate agencies of Delhi, India. Moreover, do not forget to carry out due diligence process with regard to approvals, location of project, project quality and completion year. For any real estate assistance, InvestoXpert is there to offer all-in-one real estate consultancy services.
Thus, if you have risk appetite for commercial real estate investing and looking forward for handsome return in coming 5-10 years, this is the right time to take a plunge in Delhi-NCR commercial market. Reputed organizations are venturing into Noida- Greater Noida market with impressive commercial projects.