Facts You Must Know before Investing in Commercial Space in Delhi NCR

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According to popular belief, buying commercial real estate is beyond the reach of the ordinary. However, with proper planning and research, you can still make a sound investment decision. It is undeniable that commercial property requires a much greater quantum of investment than a residential property. For a low-budget investor, it is certainly not possible to buy commercial space in Delhi NCR. However, an investor with a budget of Rs 50 lakh or more can possibly look at the commercial sector.

When it comes to returns on investment, a commercial property is typically a better choice of investment. The rental yield for a commercial property is usually much higher than a commercial property. Vacancy periods are normally low as it is not difficult to find tenants for a commercial property. Longer lease period periods for tenants are another major attraction. As more opportunities are created in the corporate sector, experts can envisage a considerable increase in demand for office space.

Before you look to invest in a commercial property, take these below six factors into consideration:

Location:

The location of the property is one the significant aspects that should be taken into consideration in the first place. This should be a major consideration for those looking to lease the property. A commercial property in a prime location is an automatic choice for retail or office use. Besides, it is easier to obtain loans for such projects in prime locations. On the down side, investing in a micro-market may not be a good decision as there can be extended periods of vacancy.

Social Infrastructure:

Similar to location, social infrastructure is another important consideration. Be sure to check the locality for malls, shopping centers, restaurants nearby as people are likely to visit this area more often in that case.

Maintenance:

Maintaining a commercial property may not be an easy task for it is a humongous job, therefore, can be tough for pocket. Despite this, you must make an estimate of the costs of the property maintenance. Property tax and building insurance should also be included in the expenses.

Facilities:

Even if you are looking for a property for commercial use, be sure to check the available facilities and amenities. Make sure that these would match with your own business requirement.

Market Watch:

Evaluate and assess the market situation while planning to invest. This will perhaps give you an idea as to understand if it is right time to invest or not. To be able to bargain better, you can sensibly choose to buy at the time when the market is low. Also check the job and investment market too for better understanding. See if there is sufficient demand for office and retail space in the area.

Expert Advice:

If possible, seek expert advice from a real estate consultant operating in the area. However, be sure to double check the information even if it is shared by a property consultant. Ask friends and relatives for confirming any doubts you have.

In the case of under-construction projects, don’t hesitate to check the developer’s track record and any risks involved in construction. Choosing the right commercial property in Dwarka requires more research and higher risk as well. A little bit of legwork can be enough to choose the right property before taking the plunge in investment.

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