Many investors are sceptical about investing in commercial real estate and they have their own reasons for it. However, today, with changing times and burgeoning growth in real estate arena, investing in commercial real estate sector is in fact a good idea. It is expected that the market size of real estate sector in India will reach 1 trillion USD by 2030 in comparison to what it is in 2017 i.e. 120 billion USD. Moreover, this sector will contribute 13% of country’s GDP in the year 2025. Along with hospitality and retail, one sector that is booming is commercial real estate. There is high demand for office spaces in sectors: e-commerce, consulting, IT and ITES. It is expected that office space leasing will cross 100 million square feet between 2018 & 2020. When it comes to developments and investments, it is seen that Indian real estate sector has attracted institutional investments of 30 billion USD between 2009 & 2018. Ref – https://www.ibef.org/industry/real-estate-india.aspx
First, it is not at all difficult or daunting to invest in this sector. Following a few principles of real estate sector, you can expect handsome returns from your hard-earned money invested in commercial real estate. Here, we share a few points with you to help make wise decisions.
Check location when buying commercial space in Noida
Location is one of the most important factors that need to be kept in mind while investing in commercial property. Shops and commercial complexes can offer high returns only based on two factors. One is capital appreciation and the second is rent. Both capital appreciation and rent are dependent on location. Thus, it is recommended to look for areas where vacancy is no more than 5 percent. It means supply is not more than demand and there are lesser chances of tenants to vacate. Locations with high vacancy give more options to the tenants to move. They also indulge in renegotiating rents.
Located in Sector 32, Noida, Wave Infratech’s flagship project Wave City Center is one of the most sought after residential and commercial projects. Beautifully amalgamating the essence of living a luxurious lifestyle, the project encompasses Metromart and High Street Shop Condominiums, which are amongst the best properties for commercial investment in real estate. Metromart comprises of food court, exhibition space, kids play zone and multiplex. Investors or buyers can check out units in different sizes right from 170 sq ft to 726 sq ft. Apart from this; HSSC is also not to be missed. This centrally air conditioned complex comprises of ground plus 2 storeys. Investors or buyers can check out units of different sizes ranging from 1718 sq ft to 4161 sq. Ft.
Quality of Business Centre in Noida
When planning to invest in a business centre, it is important to check the quality of construction as well as facilities and amenities available. Despite being at the same location, two buildings may be radically different in terms of quality. There is no guessing which building will rent out first and why. Moreover, a quality construction will attract tenants who can afford to pay higher rents. This will translate into better tenant retention, high capital appreciation and higher rents.
Demand versus Supply
Another thing that is important to be borne in mind is to choose a location where supply is less, and demand is more. It is here that investors can expect higher rents. Conversely, in areas where supply is more than demand, the prices and rent both comes down. Such a disproportionate supply demand ration can leave a negative impact on new as well as old buildings.
The value of commercial property also increases with a quality tenant. If investors are able to rope in blue-chip multinational clients, it can fare well for them for a long time to come. Such clients pay their rent on time, stay for a longer time, pay higher deposits and increase the property value.
Interior and Aesthetics
Investors must also check the interiors of the property or basic facilities available before buying it. Depending on the availability of these facilities and amenities, or interior fit outs, a property is able to fetch higher rents. In many places, only a bare shell is provided, and the buyer has to get work done according to client requirements. Thus flooring, air conditioning, ceiling, interior cabins, wiring, conference rooms, etc., are done later.
Thus, the above factors will help you make a well-informed decision and you will be able to invest in a property that fetches excellent returns.