Shark Territory - A guide to foraying into the "BIG GAME" waters of Commercial Real Estate
While first-time investors prefer to stay safe and invest in residential real estate, Commercial Real Estate tends to attract investors who have a greater understanding and experience with the subtleties of the realty market.
All investors must analyze numerous factors before making their investments. These factors vary, depending upon whether the investment is made in a commercial property or a residential one.
Commercial spaces offer greater liquidity in the investment, as compared to residential properties. But on the flip side, the funds required to invest in a commercial property, are usually much higher than those required for a residential space. And these higher stakes are what keep the smaller fish at bay.
5 quick questions to ask yourself when you’re investing in Commercial Real Estate
1. How well is the sector your business runs within, doing in that area? What other Businesses are predominant in the area? Having allied businesses around is an asset. For example, if you are in the business of fresh and dry flowers and bouquets, having Hospitals around or an Airport nearby would mean great business!
2. Does the Location have good access to public transport, citizen amenities and other infrastructure that your employees and customers will require? For example, it would make no sense to open a car garage along a one-lane road that’s always packed with traffic.
3. Is the location easily accessible to residential areas? Will your employees and customers be able to reach you easily? Many a good business has failed because the premises were just too far off from civilization!
4. What are the growth prospects for your rental income? A higher rental prospect always translates to a higher initial property price.
5. What is your exact requirement? Different requirements need different approaches. For example, bigger units usually pay off better in the long run. Pre-leased assets help generate revenue immediately.
At the end of the day, whether you are going the Residential or Commercial way with your investment – the safety of your money is of equal importance. Many reputed builders are now offering Commercial Real Estate options in areas as prime as their Residential properties. Case in point Inspire Hub, Andheri by Adani Realty; Built on Prime land with the best of infrastructure, connectivity and growth prospects, investors can rest easy knowing that their purchase would result in a spectacular return. Similarly, there are a number of other reputed builders offering similar properties. All you have to do, is be able to answer the questions above, in the positive.