Investing in commercial properties can be a big deal in itself, and the entire real estate industry requires a great deal of attention to keep a complete track over the benefits, profit, and loss. With positive sentiment flowing in the real estate, commercial spaces are witnessing a considerable demand. Such a trend not only assures the best return on investment when compared to the residential properties but also give a greater appreciation as well. But while buying commercial properties, here are the following factors which must be considered by all.
- The entire market of commercial property in Gurgaon, now, comes up with multiple lucrative offers which even include assured returns to all the investors. All these offers promised end up enticing the buyers to get commercial spaces at the earliest. But at times, builders fail to keep their commitments resulting in investors facing loss. Another important point to remember while investing in commercial projects or office spaces at a very preliminary stage is the inherent risk of the entire project getting delayed due to pending approvals or so.
- The amount of risk involved is inversely proportional to the pace at which the development of the project takes place. Generally, the amount of risk involved is highest when the project starts and diminishes as and when it starts progressing. As a result of it, investing in a commercial property in Delhi NCR, that is under construction involves a lower amount of risk than that of a residential property.
- Any project at random that has got a big scope of proposed infrastructure will always have a huge potential for finding a price appreciation. Hence, while choosing the commercial projects keeping the investment factor in focus, one must be sure of the project quality. At the same time, the project should enjoy a good connectivity. While working in under construction projects, one must notice that if the supply by completion of the project is not greater than the demand, it will automatically yield returns which are much lower than expected.
- The location is another major factor that plays an essential role in the quantum of appreciation of a property. All the office spaces which are nearer to the commercial hubs are likely to yield greater returns than the expected in terms of pricing. The upcoming commercial hubs that are expanding rapidly in Gurgaon and Noida have office spaces at much higher rate than Faridabad and Sahibabad.
Each prime commercial property in Dwarka Expressway or in any other prime location comes at a prime price. So, all these investment avenues should be duly checked and compared based on the amount invested and the return guaranteed. With a boost in commercial activities and higher prices in the commercial segment, this sector will actually experience a major shift in the entire industry.
With major developments in neighborhood infrastructure, the price of a commercial property is likely to appreciate in multiples. With better infrastructure, the commercial properties are able to draw attention from emerging MNCs that are looking to expand their operations and opting for renting office spaces.
Richard Bradford is a renowned blogger and has worked with many construction companies in Gurgaon. He talks about how Gurgaon has evolved as a millennium city for lucrative returns on commercial investments.