Investing in a real estate market will continue to remain one of the biggest decisions of everybody’s life. It is because real estate demands hefty amount of hard-earned investment. Moreover, with the launch of different commercial projects in a row, it often becomes herculean task to choose one project over other. No matter you are buying the property for end-use or for investment purpose, consider these factors while making commercial investment in the Indian realty market.
- Location – Selecting prime location is a matter of utmost importance. It is because commercial property drives returns in two forms – capital appreciation and rent, and both the factors greatly influenced with the location. Invest money in such locations which offer easy connectivity and well-enveloped with residential colonies. It is because such properties rent out easily and rates also appreciate at a faster pace.
- Check for Certifications – It may happen that at one point of time more than one commercial project in Greater Noida is at under-construction phase. Moreover, reputed real estate developers construct these projects which are supported by reputed financial institutions. In such a scenario, it often becomes difficult to decide where to park money. So, if you find yourself trapped in such a situation, look for certifications like LEED Platinum or Gold ratings. Furthermore, check about interiors like more elevators, better views, office space size, starting investment, etc.
- Lease Structure –The leasing structure of commercial properties are quite different from residential ones. They structured in the form of 5+5+5 or 3+3+3 where lease escalations will take place after 5 year or 3 year respectively. There is a lock-in period also which put restriction on tenants to not to vacate the property under that specific period. While making investment, take time to understand the lease structure. The general rule is longer the lock-in period, better for the investor.
- Security Deposit – The security deposit is the common feature of commercial properties of Greater Noida and Gurugram. This deposit comprises of advance rent of 10-12 months. If any developer asks for security deposit for more than one year, it speaks about its bad financial status.
- Property Litigation – Make sure to invest money in such commercial projects in Greater Noida, India which are free from old and existing litigation. Enquire about the same and check the documents like approvals, certifications are in the place or not. If after thorough checking, litigation exists buyer has the power to cancel the deal or even re-negotiate the deal.
Try to avoid all these potential risks in advance and choose the commercial property which fits your budget. Some of the most sought-after commercial property in Greater Noida are Galaxy Blue Sapphire, WTC CBD Noida and Mahagun Marina Walk.