Commercial real estate is a good investment choice
With the advent of US and Europe-based outsourcing companies, the real estate sector has emerged as the most lucrative choice for investors.
With the advent of US and Europe-based outsourcing companies, the real estate sector has emerged as the most lucrative choice for investors. India's commercial real estate sector has witnessed significant growth since the outset of the new millennium, a watershed moment for the service sector and the genesis of US and Europe-based outsourcing companies in India.
Subsequently, the introduction of REIT regulations in 2014-15 made investment more accessible to retail investors. The first REIT listing in 2018 allowed investors to own a fraction of commercial real estate.
Today, in its exceptional growth phase, commercial real estate offers guaranteed and higher investment returns than other financial instruments, making it a valuable choice for retail investors.
Commercial real estate is an asset with a solid intrinsic value, offering consistent returns and multiple income streams. It is a safe and secure investment due to its consistent returns and the ability to generate income even when tenants leave.
Commercial properties can yield income more steadily than shares, stocks, and bonds, providing income stability even in volatile markets.
Equity, the amount an investor builds over time, can be built up quickly with commercial real estate properties, yielding steady and relatively high returns. Real estate investors also avail tax benefits for commercial real estate purchased with a loan. nvesting in high development potential, like urban areas, can maximize returns.
Even if future successors use the property, a loan can be requested to meet short-term financial needs.
Thereby, before investing in commercial real estate, it's essential to conduct thorough research, build a team, understand risks, have a clear strategy, consider financing options, and be patient. One should also research the local market, property types, and historical data to assess potential appreciation and cash flow to avert unforeseen risks.
Moreover, a detailed analysis of financing options like traditional bank loans, private lenders, or crowd-funding platforms simplify the future course of action and minimize investment cost.
