The demand for commercial properties is increasing as more investors show interest in the commercial space. The government plans to develop more commercial projects due to the rise of IT firms and the introduction of MNC companies in different areas.
Thus, let’s check out the reasons behind the rise of commercial properties in prime sectors and see how investing in commercial property is important in the long run.
Why are people shifting towards commercial investment?
Nowadays, people are moving towards the real estate investment option. Compared to other investment options like gold, stock, bonds and others, real estate is beneficial and less volatile, so working-class people are also looking for the perfect investment option.
Commercial properties like EON Fairfox and others are getting the limelight as people become more interested in investing in commercial properties. Here are the reasons behind it:
Economic growth means the rise of commercial property due to the introduction of new businesses and other companies. On the other hand, a recession decreases the demand for commercial properties due to the loss of jobs and other factors.
Different factors depend on commercial property demand, like inflation, interest rate, job opportunity and many more.
Rise in demand
The demand for commercial properties is increasing at top speed due to new technology and the rise of e-commerce businesses. People need spaces for storage, logistics and distribution. Also, as people shift towards start-ups, they need commercial space to establish their businesses.
Government policies are helping out investors to choose the right commercial property because of benefits in tax policies, zoning laws and other necessary regulations.
Stable rental income for a longer time
The lease on commercial property is longer than residential property, which results in a stable income for a longer time. It benefits the owner as they don’t have to worry about the other expenses because the tenants bear them, like the furnishing and maintenance costs.
Which areas are perfect for commercial investment?
Commercial real estate investment is beneficial if the location is appropriate and has all the necessary amenities and facilities. Therefore, let’s check out the areas where you can invest in commercial properties which give you higher returns in the future.
Noida and Greater Noida
These are the major parts of Delhi NCR where the demand for commercial property is continuously increasing. With new commercial properties in the area like EON Fairfox and others, people are shifting towards the Noida and Greater Noida for better options.
In these areas, you can find the best commercial properties with all the amenities and facilities at reasonable prices. Also, the connectivity is well-established due to the presence of metro routes, expressways and highways.
In Bangalore, you will find many established commercial properties already as different companies like IT firms and MNCs are established their headquarter in Bangalore. Therefore, if you want to get high returns on your investment, Bangalore is another good choice for commercial investment.
Commercial property in Pune is growing rapidly because of the introduction of start-up cultures and the establishment of manufacturing units. There’s a need for commercial places in Pune, and as the demand increases, you will get a steady rental income and a good price when resale.
What are the benefits you can get after investing in commercial property?
People are moving towards commercial property investment because of the following reasons:
High rental yield for a longer time
People started investing in commercial properties because of the high rental yield and longer leases. The rental yield in commercial properties like EON Fairfox and others established in posh locations has 6-10% of annual rental yields.
If we compare it to the residential annual yield, it comes as low as 2-4%. Therefore, investing in commercial property is a good option to enjoy passive income.
Protection against inflation
When inflation happens in the country, the property value increases, including the rental value. Therefore, against the lease agreement, you can increase the rent, which helps you get a steady rental income during a recession or inflation.
Easy to attract investors
As people look forward to starting their businesses and following the footstep of entrepreneurship, more people are looking to invest in commercial property. The demand is increasing, so it would be easy for you to find the right tenants.
A Secure investment option for future
Commercial property proves to be a safe option for rental income, especially if the property is located in a posh place. It will keep attracting investors, resulting in a stable cash flow. Even in difficult times, you can enjoy rental income, so people consider commercial property a good investment option.
Should you invest in commercial property at present?
By keeping all the considerations, investing in commercial property is a good decision for you to enjoy high returns in the future. Also, if you invest now, you will get the property at a reasonable price at a good location.
Therefore, choosing the right commercial property at the right location where you can get the tenants easily and enjoy the rental income is important.
The demand for commercial properties is increasing, and it’s the right time to invest in getting good ROI and stable income. Check the right commercial property at the right location to get profitable returns.