New Delhi, June 23, 2015
Contrary to the popular belief, real estate is not always a risky gamble. Commercial Properties are the biggest and most stable attraction in real estate market today. It is also said to be more profitable than investing in residential properties.
The commercial real estate space prices at present are at rock bottom as compared to residential property. The plunge in the prices is due to ample availability of commercial locations.
“Cities like Mumbai, Bangalore, Hyderabad, and Delhi NCR are the hubs for commercial properties. With major domestic corporate offices and multinational companies opening their branches in new location, investment in commercial real estate will be highly beneficial both in short and long run,” said Jetesh Prasher, CEO and founder of GenX Deals. GenX Deals is a renowned Real Estate Portal and one stop for all destinations for property related information.
Since 2008, the average capital values in the office sector in India are 25 per cent lower than their last peak price. The investment in commercial real estate will prove immensely beneficial for either who are looking to have regular monthly income from leasing properties or those who want to use the space for their own business.
“With the new government, more thrust has been made on reviving business sentiment. Proposals like increasing foreign direct investment limits, real estate investment trust and smart cities projects will bring increase flow of money and demand for commercial properties,” CEO of GenX Deals added.
Moreover the return on investment is greater in commercial properties. The profit margins can rise up to 8 to 10 percent for an investor in commercial properties. While the yield on residential properties hover close to mere 3 percent.
Explaining the Delhi NCR commercial real estate market, Mr Prasher added that Delhi NCR has highest concentration of under-construction real estate projects in the country, roughly about 33 per cent of the total value.
“Gurgaon has already proved to be a hot favourite for commercial property investors. New projects are also budding in Gurgaon, Noida, some pockets of South Delhi which will be prime locations for corporate offices. Thus, investors in commercial properties are likely to get greater profit margins in days to come.”
Experts also state that the investments in commercial market are a safe bet. With the economy on the path of revival the commercial properties will only rise in the years ahead.
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