Real estate in booming now a days, when it comes to commercial real estate, we can see a revolution in the market as new technology has launched, new regulations are implementing and new designs concepts & elements are there in the market too. The country is witnessing a good GDP growth and which is really a good sign for this industry as we have seen in last 3-4 years when RERA came in to existence, this industry was suffering but now we all can see the improvement in real estate. Even developers are leaving traditional way and implementing the new technology, rules and principal to increase the invest in real estate property and trying to make it secure.
The interest rate announced by Reserve Bank of India is also leaving a direct impact in commercial as well as in residential real estate in India. Though the rates changes time to time but the ultimate goal that it will be feasible for buyer to invest in commercial property in India.
Below are the 5 Rules which you can follow to invest in Commercial property –
Location: The location is one of the most important factors when you are planning to buy commercial property in India. The property which you are buying can be used for your business or to hire on rent. First do research the scope of the location and make your vision clear while buying the property.
Demand and Supply: The demand and supply play a vital role in commercial property but it is varying place to place. As in a particular city and area it will be different as each micro market has a stock and supply too. The better that you research well on this point.
Lease Structure: Commercial lease is very different from residential ones. Though there are many factors but the important factor is that tenant can vacate at any time whereas the landlord cannot ask them to leave for the lease period as there can be a lock-in-period will be specified. In short, the longer the lock-in, the better it is for the investor.
Security: When giving property on rent be careful as a tenant will ask for less security money in terms of month but the short lock-in-periods is not beneficial for you. The tenant will try to secure his money and an owner will try to safe his investment.
Exterior and Interior: The quality of commercial property means a lot. If a building has good amenities, quality construction and interior design, obviously that property will me costly to invest but remember you can get the good return on investment.
Real estate in booming now a days, when it comes to commercial real estate, we can see a revolution in the market as new technology has launched, new regulations are implementing and new designs concepts & elements are there in the market too.