Commercial Properties to be the Next Big Thing in Real Estate Sector in India

Increasing demands of affordable real estate in India has been on a rise since past few years. People want to buy a property and keep it as a long-term investment. Same is the case with the demand of commercial properties in the country. Due to increasing urbanization and work opportunities, entrepreneurs and multinational companies have been investing in luxurious commercial properties. Huge offices with plush surroundings have become a plus point while hiring in different new work places. Not only this, job seekers are also giving priorities to the companies with comfortable and lush offices.

Rise of Commercial Property in India

Real estate gurus have always predicted that the market predictions for commercial and residential property are quite different. It is because of the fact that the potential returns and maintenance costs are directly associated with it. Moreover, absorption of commercial property has vastly improved since the past 5 years and the trend is likely to continue.

Given that a commercial property could be anything from a small office, a shop or a commercial space in a residential complex. Talking about the recent changes in the real estate sector, it would not be wrong to say that commercial properties offer a flicker of hope for investors. The same could not be said for residential properties as the demands have been a little sluggish. Apart from that, commercial properties have been gaining traction due to its availability as many new builders prefer it over residential properties. Hence, with this renewed demand, rental and capital values are showing definitive signs of development.

According to Colliers International, a real-estate consultancy, since the first half of 2013, companies and owners have rented 30.44 million sq ft of office space across India. Presently, the number has risen by 17 percent to 35.62 million sq ft. With this remarkable increase, putting your money into commercial real estate business is a safe bet.

The Way Forward

When we talk about offices in commercial properties, a lot of companies in India are already in an expansion mode and spreading out into bigger spaces. The second quarter of 2015 proved out to be a safe period for investors as there was a quarter to quarter increase of about 70%. On top of all these factors, location of a property plays a vital role in its business. Therefore, people who are a little skeptic about their investment plans should opt for ready commercial office properties as it would give them a steady cash flow for the future.

An important aspect of commercial real estate is that one has to keep in sync with the economic cycles, which helps in planning out new developments. Also, if you are planning to rent the property, then being updated about rental structures is always a good option. If you’re the owner of the complete India property, then it is also advisable to maintain it from time to time in order to keep it up-to-date. The ideal investment horizon for commercial properties is calculated out to be between 5-7 years and one has to take care of financial capabilities, market knowledge and holding power while making the final choice.

Here’s how you can get over your fear of buying the “RIGHT PROPERTY”

Buying property is no child’s play, be it India or any other country across the world. There are certain factors associated with it such as cost, location, loans and what not. However, it should not be that chaotic and buyers should be at ease while making the final decision. Keeping aside all these factors, some of us are still not able to get over the burden of finding that perfect property and call it our own. On top of that, there are also various taxation complexities and return amount on insurance premiums that get associated with the whole idea of buying Real estate property.

In order to overcome the panic, here are a few tips that might come in handy next time you are going for a property check!

Stop expecting quick returns

Almost all of us these days are trying to find a property to buy so that it could act as a security to us. However, we keep forgetting that the prices do not climb overnight; they take few years to reach a certain threshold where it can start giving out profits. Therefore, if you are planning to take the leap then you should have a certain perspective about the investment that needs a time frame of five years or more.

It’s never the right time

If you are one of those people who expect for the prices to drop suddenly so that you can buy a property on your own terms, then it’s time to think twice. Also, it’s time you should also stop waiting to get more discounts from developers. This helps you to get a clear idea of when you should start investing your money on the property that suits you best. The realty sector is always going to be unpredictable, so it’s best for you to stop worrying and make the most out of different opportunities.

Apart from these factors, there is also a fear among buyers about the right credentials and property papers. In order to make sure that no one falls into a trap of fraud realtor, some of the laws have been introduced by the government. On the other hand, if you are too cautious to use a legal help, it always pays off to be a little alert while finalizing a property. A harmless background check and track record of the developer should be enough to start with.

As mentioned earlier, getting into becoming a real estate owner does not mean that you start losing your sleep over it. If you want to be sure about the property site just go through a few of the quality check steps and you’re good to go! Although it can be a tricky business, real estate does not necessarily means that one should become pessimistic about it.

In order to help property buyers take the necessary precautions before committing to a realtor, the above mentioned instructions are surely going to come in handy. Therefore, while keeping your expectations realistic, you can actually stumble upon just the exact property that you have always desired for.