future-growth-for-investors-to-invest-in-commercial-projects

Where should I invest money in commercial property OR residential property?

Thinking to invest money, whether in commercial property OR residential property.
Resolve it from here… i.e. invest money in commercial property or residential property …

 

In a nutshell:

— Residential segment in real estate industry has been all time favourite for investors till the 2006-07. Return on investment was more than sufficient and capital appreciation was emphasised more than anything else.

— Also, it was much easy to enter in residential segment for investment for the end-user.

— However in the recent years the scenario has changed drastically. Demand for commercial real estate segment is on the upside curve while the residential segment is on the opposite lane, towards downside.

— Let’s delve into the commercial real estate investing segment more and analyse how it is changing the face of the Indian real estate industry.


COMMERCIAL REAL ESTATE INVESTING IN INDIA: AN OVERVIEW


Commercial real estate investing in India is in the limelight simply because of myriad reasons.

Here are the top reasons why most people prefer commercial real estate over residential real estate:

— It is able to get much more returns on investment as compared to the residential segment.

— Nevertheless the investment is, as well, comparatively higher than that in residential segment.

— But at the same time, if investors can leverage funds through financial institutions, they can get through all kinds of entry barriers.

invest-in-commercial-property-or-residential-property
invest money in commercial property or residential property

Commercial real estate investing has been gaining interest of investors as it is just the beginning of the era when start-ups and corporate sector have been demanding more and more of co-working space.
Whether it is retail, office space or industrial, demand for commercial spaces is expected only to increase.

Why should you invest in commercial real estate than residential real estate?

— Investors have been gaining interest in commercial segment due to the sluggishness in residential segment. There have been issues with the latter due to the lost confidence of the investor or end-user due to the delay in delivery, high rate of interest on loan and less return on investment as compared to that in commercial segment.

— Apparently, investors are more inclined towards the emerging segment. Capital appreciation always goes hand in hand when it comes to investment in real estate besides return on investment. The credibility also goes to simultaneous infrastructural enhancement taking place when it comes to any kind commercial development.

— Investing in commercial space is lucrative not just because it yields high rate of return but also because this kind of space is requirement of almost all commercial undertakings, banks, private firms, HNI’s etc. Moreover, with Real Estate Investment Trust (REIT) in place, the industry will be the field for only serious players.

These above points help out to invest money in commercial property or residential property.