5 Rules to Follow while Investing in Commercial Property

Posted by vineeth kumar on February 11th, 2019

Real estate development in Delhi NCR has made residential and commercial properties easily available for sale. One can easily find properties built by renowned real estate developers available in this region. But it is also true that there is a difference between buying a new home and investing in a commercial property. Most of the commercial properties are costlier than homes. But they do give better ROI. Property value appreciation and rent appreciation goes hand in hand, both of which is advantageous for a property owner.

For long term benefits, one should follow certain rules of commercial real estate investing while buying office spaces or shops in Noida. These are as follows –

1.  Choose Property’s Location Wisely

Location of a commercial property is one of the most influential factors that determine its value. The owner gets returns in terms of rent as well as increment in property’s value, both of which depend on its location. As a rule of thumb, it will be best to invest in commercial properties that are located in prime regions with least vacant spaces.

2.  Check the Overall Quality of a Property

Two properties may exist in the same location. But the one which is designed with best features will get sold or rented easily than the other. The overall quality of a commercial building can be gauged in terms of its utility for different types of businesses. So, one should be very specific about considering the quality of a commercial building, before investing in it.

3.  Keep the Target Buyer or Tenant in Mind

For someone who wants to open up a retail store, investing in a commercial shop in Noida or Gurgaon or any commercial hub for that matter, makes sense. For those who want to build a warehouse, their needs will be different. So, an investor should keep in mind to whom he will most likely to sell or rent his commercial property. It will help him in making the right investment plan.

4.  Consider Diversification in Mind

In terms of properties, diversification means investing in a number of properties to reduce the risk of possible loss. If an individual invests all his savings in one property, he/she may be exposed to a higher risk of loss. On the other end, investing in multiple properties reduces such risk. Obviously, an individual’s preference does matter alongside.

5.  Invest in Properties Built by Renowned Builders

You may find several different commercial properties available for sale in Delhi NCR easily. But when it is about deciding where to invest, considering a builder’s reputation can help. Based on the reviews of properties he has built in the past and their occupancy, you can make a wise decision.

By keeping in mind these five rules, one can get helped in the process of investing in commercial properties located in Delhi NCR.