What Should You Know Before Investing in Commercial Shop Space in Old Delhi?by Devika Sadar Bazaar Devika Sadarbazaar
While investing in a commercial property in Delhi, one must be very careful and informed
to make the right decision. With the right information and knowledge, making
such an investment is not as difficult a task as it may appear. When we talk
about investing in a commercial shop space in Old Delhi, this might be your
best decision. Why? The elaboration is later in the blog.
Investing in a commercial shop space can also be beneficial if you follow long-term investment principles as you can earn much higher returns in these deals compared to most debt instruments. Here are some points you should consider before investing in a commercial property.
1. Location of the property you are investing in
Location is the prime factor that has to be taken into consideration before putting your money in any space. It is everything. When we talk about benefits, commercial properties profit you in two forms which are rent and capital appreciation and both of them are highly dependent on the location of the property. As mentioned earlier, Old Delhi is one of the best locations to invest in. Why? Old Delhi is one of those crowded regions of Delhi where every commercial shop is crowded with people. Several big projects are taking place in the region because of the benefit of the crowded area. The more the crowd, the lesser would be the vacancy rates which gives the investor high benefits from the tenants.
2. The Builder of the commercial space you are putting your money in
When you decide a big part of your hard-earned money into a commercial space, you need to make a thoughtful decision and ensure that the top builders in Delhi build the commercial project. You need to find a reputed and expert builder to rely on for maximum benefits and you own a part of one of the most desirable buildings in Old Delhi. Choosing a trusted and renowned builder is also important in the long haul as it can assure that you do not face any problems associated with the quality of the project.
Moreover, the builder group whose project you are choosing to invest in should be RERA (Real Estate Regulatory Authority) is also essential to avoid legal complications in the future. In addition to it, having the best real developers in Delhi by your side can help you get quick and hassle-free loan approval from leading financial institutions as these builders can have good connections with such big institutions.
3. Quality of the real estate project
The importance of quality can be explained by this example. Two real estate projects might be in the same area but might differ in quality. And of course, the one boasting better quality would host a higher number of better-quality tenants. It goes without saying that the higher quality of real estate projects can fetch the investor better and higher returns, better customer retention, and better capital appreciation. So. When you decide to invest in a commercial property in Delhi, make a smart choice by investing in the one with better quality construction, nothing other than that, however tempting the other may look. Remember that quality comes before anything.
4. Market rent and In-place rent
Now, it may be quite an advanced concept that many builders and smart investors consider before investing in any real estate property. This is the market rent vs in-place rent technique. Once you own a property, it would fetch you rent and the rents of different properties vary differently. For instance, says property A would fetch you 200 rupees, property B would fetch you 115, and property C would fetch you 178 rupees.
Which one would be most beneficial? At first look, it might be property A for you but if you are a smart investor, you would also look forward to the market rents of the place. If the market rent is around 170 rupees, then property C would be the smartest choice. Why? First of all, it would assure you that you are not getting underrated and that the property is the least likely to vacate. Renting a property at an above-market rate can be a red flag as the tenants will be more likely to vacate soon and move to new projects with lesser rents.
5. Interior fit-outs of the space
If you are an investor, then a smart tip for you would be to also invest in the interior fit-outs of your property as it will elevate the chances of customer retention. In India, most properties are delivered without properly done fit-outs and the tenant has to do the fit-outs or they will ask the owner to do it. But one thing is for sure, tenants will be more likely to stay if they get beautiful and breathtaking interiors at the place they are paying high rents for.
6. Focus on the quality of tenants too
It is better to avoid giving your space to small companies or small retailers who can pay a small amount as a good tenant can significantly increase the value of even the best real estate investment in Delhi. Always look for quality clients or quality tenants who can pay you better rent that too on time, pay higher deposits, stay for a longer time and elevate the value of your property.
Considering all these points, the best project you can invest in would be the Devika Sadar Bazaar of you wants to invest in retail shops that are multifunctional and modern. This project by Devika Group is the one that stands strongly on all the factors and is a great choice for commercial real estate investors to put their money in. the project is equipped with multiple spacious showrooms with top-notch and world-class amenities like 24*7 security, 100% electricity backup, fire alarm for emergencies and whatnot. Look nowhere else if you want to own a piece of the best commercial space in Old Delhi.
Created on Dec 1st 2022 00:37. Viewed 96 times.