First of all, the answer to the question is yes! To add value to the answer, this article will explain if it would be a good idea to invest in commercial real estate in India in 2021. If you are new to the real estate market and planning to invest in commercial real estate, you need a solid and profound understanding of commercial real estate. This article will explain every minute detail about commercial real estate properties and how investment in rental yielding commercial real estate is beneficial. But first, let us understand what a commercial real estate property is.
What Is A Commercial Real Estate Property?
Commercial real estate term refers to real estate property that is used for commercial purposes only. There are many different types of commercial real estate such as office and warehouse shopping in the market, in hotels, resorts, malls, restaurants, banks, healthcare facilities, etc. Real Estate dealers also offer co-op properties or PG apartments in cities such as Bangalore, Gurgaon, and Mumbai. It is a new way of life, like all existing residents, who share a kitchen, living room, playroom, terrace, etc. as an object for 10-12 people. Housing is a new concept of real estate in India and this type of real estate is very lucrative.
Why Should One Invest in Real Estate?
- Rental Yield- As far as rental yield is considered, the rent is as high as 15% and capital return is as high as 12%, all thanks to the rising demand for commercial properties.
- Better Than Other Forms of Investments- Commercial Real Estate is far better than other forms of investment methods. There are plenty of opportunities for moderate-high return investments such as the stock market, time deposits, gold, so why invest in commercial real estate? This is because none of the previous options will provide you with recurring income. Stock market investments are usually associated with a high degree of risk. Real estate investments of all kinds guarantee recurring monthly income just like monthly rent. Commercial properties have the highest returns, guaranteed up to 12%, with no risk.
- Commercial Real Estate Properties Over Residential Real Estate Properties- Commercial properties are rated better than residential properties for investment purposes because the returns are better. Split rental income for some of the most popular commercial real estate options are given below:
- Retail properties such as shops, malls, etc.: >8% rental yield.
- Office space, IT building/park, etc.: >6% rental yield.
- Warehouses for large e-commerce companies: >5% rental yield.
- Residential real estate: >2% rental yield.
- Monthly Cash Flow- CRE ensures a regular and consistent monthly cash flow. This is great for those who are looking for some regular cash inflow sources. Keeping your assets safe is another great way to check your monthly income. You can also play smart, invest in a business in a shopping district, and then deposit your assets at an ATM. Depending on the location, the monthly rent is several thousand. You may have heard of smart investments that can make you money while you sleep. I will add that commercial real estate investment is an ideal choice for this.
In conclusion, if you are planning to invest in commercial real estate, don’t hesitate anymore. Go ahead and invest in the best investment opportunity to grow your income today!
About the Author: Yield Asset
Yield Assets is one of the best commercial property investment companies that provides the best real estate investment platform. Investing in pre-leased commercial property is one of the best investments that one can rely upon.