3 Reasons Why It’s Safe to Invest in Noida Commercial Projects

The question is if investing in the best commercial office space in Noida a viable idea or not.

 

The short answer is yes, of course,
&&
The long answer demands a checking of the facts and figures.

The market for commercial property in Noida is booming thanks to the growth of urban infrastructures such as
Metro rail lines and
Airport option at the adjacent district of Jewar, namely.

Why can you safely invest in the best commercial project in Noida Expressway/Extension?

Noida’s property market is benefitting simply from the bandwagon mentality of commercial estate buyers right now.

But, for once, the bandwagon is actually backing the right horse in the race, so yes, if you are looking to invest in commercial property in Noida right now, you are heading in the right direction.


There are several reasons why you can safely invest in commercial space in Noida, provided you have vetted your choice as investment-worthy. Those reasons are:

 

1. Positive investment returns:

 

As lucrative as they are, commercial office space in the most in-demand, upcoming projects of Noida is not a dozen a dime.

If you are planning to invest such a handsome sum in commercial projects, then you must ensure that it reaps good returns on investment.

 

Price appreciation of certain properties is higher than others owing to location, design appeal, planning, amenities, etc. One must also take into account the rental prospects of such property before investing as rent control is one of the best ways to recover your investment from a commercial unit.


2. Growth prospects:

 

One of the key reasons we invest in commercial property, or any property at all, is because, given the right conditions, these assets appreciate in value.

As mentioned above, if you want good returns on investment, the best properties in Noida that are exhibiting rental yields of minimum 6-10% return.

It is only safe to invest in developers whose portfolio reflects commercial assets that fit the above rental yield bracket. Capital value growth can only occur to properties that are situated in the right sub-markets such as Yamuna Expressway and Greater Noida Extension, among others.


3. Availability of choices:

 

One of the key reasons the commercial property market in Noida is in a booming condition right now is because the competition is at an all-time high among developers.

There are highly anticipated projects coming up in every corner of this district in the National Capital Region. So, investors not only have a range of choices in design but location as well.

You can find an investment-worthy commercial asset in Noida regardless of your budget. Most of these properties, either retail or office variety, also offer social amenities like
transport and road connectivity,
mobile network connectivity,
dining and
medical facilities in the vicinity, etc.


A number of renowned multi-national franchises already call Noida their home, with many Indian brands following suit. It is safe to test the waters by investing in commercial office space in Noida right away.

10 Thumb Rules For Successful Commercial Real Estate Investing

If you intend to invest in commercial real estate then you should follow some set of principles to earn higher returns.

All you need to do is follow the given set of points at the time of making long term investments in a commercial project in Noida Extension to earn much higher returns from these instruments.


  1. Check the Current Demand with the Upcoming Supply

A savvy investor should analyze and gauze the micro-market of the commercial property before burning a hole in the pocket.

Ensure to evaluate the stock thoroughly by regularly checking the published reports related to the amount of office already completed and leased along with the details of the upcoming supply as per the existing demand in each city.


  1. Location

Location plays a vital role in this aspect. Both these types of income are heavily dependent on the location. One should always zero down on properties where the vacancy level is below 5%.

As the best commercial projects in the Noida – Greater Noida Expressway zone, are the ones that epitomize the definition of perfection in commercial real estate investing.


  1. How Risky is the Property

One should check at what price are the new buildings being rented at today in the given area.

This concept helps you to judge whether you are ending up buying an asset which is over rented at a market price that seems to be above the current trend.


  1. The Type of Residents

Quality of the tenant plays a major role in increasing the value of any commercial property.

Not only this, but the value of the property also tends to increase if there is a high-quality occupant. Try to keep yourself away from small and unknown companies to regret in the future. It is always advisable to seek opportunities from the world of blue-collar multinational tenants for better results.


  1. Periodicity of the Security Deposit

One should be very cautious when it comes to finalizing the security deposit especially in the case of commercial properties.

This could be mainly because either they are looking for a short-term option or they have cash flow issues. The ideal security deposit is the one that usually varies between 10 and 12 months’ rent.


  1. Terms and Conditions of the Lease

Commercial properties are basically structured as 3+3+3 or 5+5+5. In other words, the property is leased for 9 years or for 15 years. The escalation in rate is at every 3 years or 5 years.

This type of property is usually one-sided where the tenant holds the right to vacate the property at any time whereas the landlord does have the right to ask them to leave until the lease period is over.

A good investor would ideally prefer for a long term lock-in period.


  1. Features of the Building

In order to fetch higher rents, capital appreciation and better tenant retention a good quality building with B, B+ ORA features will attract a better quality of tenants.

Properties that pursue high quality are liquid in nature and do get sold much faster.


  1. The Status of the Interiors

Usually, any commercial property at an initial stage is built like a bare shell covered with four walls.

The interior fittings in the property are done by the tenant as per their taste. As an investor, you should be clear on this front.


  1. Avoid Being Duped by the Developers for Fit-out Rent

Always compare what would be the rent of the “to be furnished property” and that of “non-furnished property”.

If the Developer is doing the interiors of the property then the fit-out rent is not permanent and is generally payable only for a fixed period of five years. Beware of being deceived from the developers on this front.


  1. Always Invest in Multiple Properties 

It is wise to make investments in multiple properties across cities to reduce variance in income. By diversifying your property you are likely to reduce the level of risk.


To sum it up these investing rules will help you quickly evaluate properties to generate consistent and significant profit for years to come.

To know more about how you can invest in commercial properties in Noida, contact here without hesitation.

4 Reasons why NRIs are keen on the Commercial Real Estate Sector in India

The ups and downs of the Commercial real estate sector in India in recent years are building a path for the NRIs to gradually increase their investment in this sector.

It has been observed that,

NRIs are keen to acquire commercial real estate sector in India. Thanks to the new policy reforms by the government.

4 Reasons Roping in NRIs

Depreciation of Indian rupee, transparent transactions, the introduction of RERA, FDI route for the retail brands to make entry into the Indian market and amplifying urbanization is 4 major reasons why NRIs are keen to invest.


1. New Government Policy and Reforms:
RERA has built-in a feeling of trust and assurance in the hearts of the NRI buyers to invest in commercial real estate. Also, the infrastructure development of the country lifted by the government is encouraging NRIs to park their monies in the Indian market.


2. Financial Aspects that are Pushing NRIs:
High rental yields in commercial assets as compared to residential property, excellent capital appreciation, and low maintenance cost are pushing NRI investors to dig for opportunities in commercial real estate in our country.


3. Easy Loan Facilities:
Our government has granted permission to the NRIs as well for availing loans in order to purchase property in India just like the facility is available for the local residents. Moreover, the NRIs can also claim tax benefits under Section 24 and Section 80C of the Income Tax Act.


4. Legal Banking Procedures:
When you seek a loan from any bank they first evaluate the title papers and link documents of the property to safeguard their funds. Thus pursuing a loan from bank enables one to trace goodwill of the property. Nearly 50% of the vacant commercial office space has been occupied by the NRIs with this clear chit facility from the bank.


Idyllic Investment Destinations for NRIs to Invest

Bengaluru, Mumbai, Chennai, Pune, Hyderabad, and Delhi-NCR are the cities that seize a vibrant demand for office spaces, malls, Grade- A offices, and co-working spaces in the Commercial Real Estate Sector in India.

Gurugram in Delhi-NCR is grabbing the attention of NRIs to invest in the commercial real estate. The properties available here are very much affordable as compared to the other parts of Delhi-NCR.

To wind it up the changing market dynamics are showcasing a gradual increase in investment by NRIs in the commercial realty segment from some past couple of years. With more and more developers now offering projects of international standards, the NRIs interest for investment in the commercial real estate sector in India particularly will surely swell in the coming times.

The current market scenario gives a feeling that 2019 will see many NRIs finding opportunities to acquire Property in Indian commercial real estate division.

Why there are better returns on Commercial property than residential property?

People who want to invest in the real estate sector confusion aroused in the minds of the property buyers whether an investment in a commercial property or residential property one would provide better income option.

Real estate investment is one of the best ways to earn a passive income. It is the most stable and lucrative form of financial investment.

One should make note of the fact that:

The residential properties are generally leased on an annual basis. whereas, The commercial properties are leased for long tenures.

If you intend to make an investment in the property to earn returns you should be careful while choosing the type of property is it residential or commercial.

where to invest and get better return in commercial or residential property


Following are the most important aspects that need to be considered at the time of selecting an investment in a commercial property or residential property asset:

  • – Prevailing Market conditions
  • – Procurement price
  • – Location
  • – Size
  • – Construction quality
  • – Layout
  • – Usage
  • – How old is the property
  • – Reputation of the builder

Residential Real Estate Commercial Real Estate
Steady source of rental income with guaranteed marginal increase with every passing year Good Source of not only regular but also a very sizeable rental income
Investment cost is very low Higher investment cost
Prevailing market conditions do not affect and correlate Market conditions do play an important role
Lease periods are reasonably very short Lease periods are in particular very long
Property can be flexibly used for various purposes Property can be used only for commercial purpose
There is a high risk of availing delay in possession Getting possession is not an issue unless the investment is made in a property under construction
The landlord has to bear the responsibility and costs of all repairs and maintenance The tenant is generally responsible for repairs and maintenance
Rental yield is not very attractive for ready to occupy homes Rental yield is very high which for sure depends on certain factors like construction, location, and market conditions
Higher maintenance and upkeep costs with lower returns due to frequent change in tenants Stable and long-term rentals with predictable income streams
Rental value does not go down if the market is slow Rental value increases with capital appreciation

In short, it is very essential to study the details carefully and figure the right property that needs to be to be invested in for earning a rental income from the same.

Residential properties as compared to commercial are less complicated and easier to understand for a new investor.


To invest in commercial property other than for self-use like:

  • — Office Space,
  • — Retail Space,
  • — Warehouse Space

should consider aspects like: –

  • — current leasing environment,
  • — ecosystem existing in the region,
  • — what is the distance between complementary and auxiliary industries,
  • — legal due diligence,
  • — all the clearances that are specific to the property’s usage.

A residential property, on the other hand, must be evaluated with regards to its ability to live by means of:

  • — social infrastructure,
  • — the surrounding environment,
  • — neighborhood and
  • — profile of other residents.