Significant returns and low risk is making commercial properties

Significant returns and low risk is making commercial properties a lucrative option for investors.  Take a glance at various options available to park your funds

    Commercial real estate is looking more viable than ever.  Between 2017 and 2021, foreign investments in Indian commercial real estate amounted to USD 10.3 billion.  Such properties offer great returns, but they come at a great cost, too.  Aniket Gupta, a real estate consultant, expounds, “Investing in commercial real estate can be very rewarding but it also demands significant capital upfront.  You need to be in a good financial position to even consider it.”He adds that this avenue is very different from residential real estate investments.  To succeed in commercial property investing, you must have considerable time and patience.

OFFICE SPACES

Now that offices are opening in full force, there is no better commercial property worth investing in, as per Akshay Mishra, a real estate liaison manager.  He notes, “In itself, commercial real estate is expected to grow by 13 percent

[VDI] by 2027.  So, to take optimum advantage of it, investors should look into investing in office spaces.”

        Typically, with these properties, tenants sign longer leases as they plan on establishing their base in a region or city, and they are very organised when it comes to settlements and contracts.  Besides quintessential office spaces, you can also look into office complexes, he advises.

RETAIL OUTLETS

Another reliable avenue, Mishra notes, is retail.  “You can choose to invest in independent retail chains or shops in bigger establishments, like malls.  You can also invest in malls directly.  There are various ways to go about it,” he explains.  Nowadays, within the retail space, there are many prospects, such as multispeciality stores, niche stores, and large or small chains.  Despite the various possibilities, one must thoroughly research the past performance of the retail outlets, their future projections, their location, and much more.

INDUSTRIAL PROPERTY

    “In industrial real estate, you can choose to invest in warehouses, manufacturing spaces or even research and development spaces.  Many cities also have industrial parks that welcome investors,” claims Arjun, a real estate consultant.  He adds that one of the perks includes longer lease agreements.

MULTIFAMILY

Given that the demand for residential properties will never go down, it can be a good idea to invest in multifamily properties.  Gupta shares, “These, essentially, are societies.  So, instead of just buying a flat and renting it out, you will be investing in society, housing multiple families, and earing returns for every buyer.”  This significantly increases your scope for financial growth, helping you reach your investment goals faster.

HOTELS AND TOURISM

Credit it to revenge traveling or the need to escape from everyday life-the hospitality industry is witnessing immense growth right now.  Mishra tells us, “It’s not a very popular area among investors, but it’s seeing some interest right now.  You  can choose to invest in hotel chains, resorts, or other tourism-related prospects.”  All things considered, various factors-from the location and background of a developer to the industry’s viability-will determine your decision.  Come what may, investors must ensure they are financially secure before taking on such an investment.

Thanks - TIMES PROPERTY