An understanding of certain factors provides a basis for commercial property investment in India. These factors can help make buying commercial property for investment much simpler, easier, and hassle-free.
Potential risks make up a major portion of commercial property investment tips that is:
1. Unique financing requirements,
2. Market factors,
3. Leasing arrangements,
4. Property management options and
5. A good knack.
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 investments 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.
Demand is what creates the drive for 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 grows. This helps increase the demand for jobs and the demand for office spaces increases as a result. Starting with demand for warehouse spaces, retail and office demand follow suit.
Interest rates determined by RBI to manage inflation have a bearing on the demand for commercial property investment in India.
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, the 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 for various types of services increases as well which leads to establishments catering to such demands.
The requirements for retail and warehousing increase as consumer spending increases demand for products which is an essential 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 the 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; the tenant is 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 the infrastructure of the place.
This is not to underestimate the importance of understanding risks that are associated with commercial property investment in India and form a major component of our commercial property investment tips.