Posted by Admin on May, 16, 2014
To understand the steady emergence of this market in India consider this: Manhattan, New York has 450 million square feet area dedicated to Grade A commercial stock, London has 200 million square feet of this stock, and India has a collective stock of 375 million square feet of commercial Grade A office complexes. This mass area dedicated to office space highlights the potential of the market in India.
India is one of those few countries whose market has undergone a dramatic shift in a short span of time which marks an upsurge of tremendous opportunities for the investors.
There are four ways in which a retail investor can park his money in the commercial sector.
However, as the investing amount is high, an investor should be thoroughly aware of the market conditions and make informed decisions.
Today many developers are offering smaller office space for investments in Grade A buildings to enhance the investment market. This is in stark contrast to the scenario a few decades back- when only larger units were available for investment purpose. Many investors who have the considerable means can invest in smaller units present in free-standing high street malls or commercial hubs. There are a number of advantages attached to such a transaction:
In the present market, professionals like auditors, doctors, lawyers, stock brokers are renting/ buying commercial properties for self usage. Many bank officials and wealth management companies confirm that their clients are investing in commercial properties.
This investment was aimed at protecting the investors’ portfolio at times of stock market volatility and market inflation. The banks/ financial institutions are willing to issue 50-60% of the loan amount to the borrower to buy these depending on his ability to repay it.
Despite availability of numerous options in the market, investing in the commercial sector requires in depth knowledge-forethought, research, planning- and great intuition. Here are a few things to look for before opting for this transaction:
For leasing out of income producing office space the investor should also keep in mind:
Investment in commercial estate has become one of the most favored investing options for people with higher disposable income ratio. Why is it so?
Thus commercial real estate offers the investors with a variety of opportunities to invest their sum value and gain life time profit from these.
Author - Sumita Roy
This entry was posted on May, 16, 2014 at 17 : 23 pm and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response from your own site.