People try to create an investment portfolio that will benefit them in the future. Some of them invest in insurance plans like health insurance schemes, car insurance scheme, etc. Whereas, some people are inclined towards receiving regular income in the form of interest and profit share and thus, tend to invest in assets like fixed deposits, securities, shares, debentures, and property.
One profitable investment avenue, these days, is commercial real estate. Commercial real estate includes properties that are usually rented or leased by business owners. These properties are solely meant for business activities and are used to generate profits either from capital gains or from rents. Examples of commercial real estate are offices buildings, warehouses, retail shops, and industrial property.
Putting money in commercial real estate is beneficial. Hence, people planning to invest in property like a corporate retail shops in Gurgaon, Noida or any other city can enjoy these five major benefits:
Appreciation in the value of the asset
The value of the commercial real estate does appreciate when the demand for property exceeds availability. However, there are other factors as well that contributes to the appreciation of the property. Owner of a commercial property can revamp property whenever they want. Restyling the interiors and exteriors, and modernizing the look of the property will lead to an increase in the value of the property.
Security in terms of Income
If the property is situated in a good location, be it an industrial property or a commercial office space, it will fetch the owner regular income. When the location is premium and easy to access, the property will stay occupied. If one tenant goes, the owner will quickly find another.
Longer Leases
Commercial properties usually have longer leasing period that might extend up to 10 years or more. For example, people giving office on lease in Gurgaon can sign a lease contract of 10 years. Now upcoming 10 years they will enjoy a steady flow of income and are saved from the efforts of finding a new tenant.
Increased profit through leveraging
Leveraging is the borrowing of capital for investment. People leverage when they know that their profits will be higher than the interest payable. They pay only a small percentage of the purchase price from their pocket and get the rest of the amount financed from a financial institution. Leveraging allows investors to enjoy higher returns and stable cash inflow.
Places like Gurgaon have become a hotspot for investors looking to invest in commercial properties. Some are putting their money in existing commercial spaces, while some are investing newly launched offices in Golf course extension road and Sohna Road.