An understanding of certain factors provides a basis for commercial property investment in India. These factors can help make the process of buying commercial property for investment much simpler, easier and hassle-free.
Potential risks makes up a major portion of commercial property investment tips that is:
1.Unique financing requirements,
4.Property management options and
5.A good knack of.
A good understanding of such factors can help when deciding how to buy commercial property in India whether office, retail or industrial. Such factors also are applicable to small as well as large commercial property investment in India. They help to identify locations as well as not miss out on opportunities for investment. We bring an easy to reference guide for commercial property investment tips.
Market drivers for commercial property investment in India
Demand is what creates the drive like of residential properties. However, population growth and economic factors also need to be taken into account as a strong economy leads to booming commercial markets. For instance, the demand for transport grows as the demand for materials grow. This helps increase the demand for jobs and the demand for office spaces increase as a result. Starting with demand for warehouse spaces, retail and office demand follow suit.
Rates of interest when buying commercial property for investment
Interest rates determined by RBI to manage inflation have a bearing on demand for commercial property investment in India.
Development of infrastructure
Access to roads and cheap rates of land provides an impetus for transport companies to move their warehousing facilities and acts as a determinant in the quest for how to buy commercial property in India.
As migration becomes a constant affair owing to new opportunities, walk-to-work concept has become increasingly popular leading to small office spaces cropping up in the suburbs.
As the population continues to grow, the requirement of services of varied types increases as well which leads to establishments to cater to such demands.
Spending on retail
The requirements for retail and warehousing increase as consumer spending increases demand for products which is an important factor to consider when buying commercial property for investment.
Awareness of risks is essential. Even in commercial vs residential property investment in India, factors such as size of the commercial property for investment in India, supply or demand, lease terms, changes in infrastructure, finance etc play a major role. While the agent of the property will try all tricks of the trade to lure investors, it is important to consider factors that can make a commercial property investment in India especially leases.
These are leases of periods 3, 5 or 10 years with an option to renew; tenant required to pay all outgoings including corporation fee, water fee etc; tenant makes good physical changes and rental increases linked to commercial property investment in India.
Commercial property investment in India can be lucrative if newly finished warehouses or office spaces add to infrastructure of the place. This is not to underestimate the importance of understanding risks that are associated with commercial property investment in India and forms a major component of our commercial property investment tips.