Articles

Benefits of Investing in Commercial Real Estate

by Akash Sharma Akash Sharma

All properties utilized for business purpose is termed as commercial real estate. Commercial real estate includes office spaces, warehouses, retail outlets, hotels, healthcare facilities, educational institutions, and industrial buildings. Commercial property is leased to tenants to carry out business activities. Good returns can be generated through property appreciation and mostly through rents.

Investing in commercial properties has gained momentum over the past decade. When it comes to investing in property, people often limit their choice to one residential property. They do not see the huge potential of commercial real estate.

In comparison to residential property, the income and equity benefits of commercial property are higher. However, the risks involved in commercial real estate are also higher when compared to residential property.

Advantages of investing in commercial real estate include a stable and rich source of income and a high annual rental yield and capital appreciation.

Flexible Financing: Commercial real estate can be flexible when it comes to financing options. Banks and other financial institutions offer a series of flexible payment options to individuals looking to invest in commercial real estate. Different commercial spaces have their own investment offers.

High Return on Investment: When investing, it is important to be cautious and systematic. A good return on investment is assured in upmarket localities in cities like Bangalore and Hyderabad. Individuals looking to invest in stable properties can expect a good rate of investment. However, ensure that you have done the necessary research before investing. Choose your commercial space wisely.

If you are looking at commercial properties, Indian City Properties is a boutique developer of premium commercial properties in Delhi, Mumbai, and Kolkata, with projects coming up in Bangalore and Nagpur.

Assured Rent in Commercial Properties: Buying from a reputed builder can assure tenant and return for your property. This makes commercial properties a preferred choice among investors.

Leasing: Attractive leasing rates are one of the main advantages of commercial real estate. Commercial properties involve long-term lease contracts with pre-defined rent escalation. The long leasing period can extend up to 10 years. Extended lease periods assure the owner of secure rental income for several years without the trouble of renewal and finding new tenants.

Cash Flow Stability: Extended lease contracts provide commercial real estate holders with a substantial amount of cash flow in a stable and consistent period. Tenants should occupy buildings for the long term.

Pride of Ownership: Pride of ownership in commercial real estate, is invaluable and highest among all asset classes. There is great pleasure in owning a piece of commerce that drives business activity.

Professional Clients: The clients are business owners and offer their own products and services. Thus, they will be more concerned about maintaining their image and upkeep of the property.

Thus, there are many benefits of commercial property development. Indian City Properties, led by Varun Thapar, is also combining modern infrastructure with green solutions to build sustainable cities. This makes a great choice for business owners.



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About Akash Sharma Innovator   Akash Sharma

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Joined APSense since, May 8th, 2019, From Delhi, India.

Created on Sep 17th 2021 04:25. Viewed 81 times.

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