Top 6 Cities for Buying Commercial Properties in India
Your Next Real Estate Investment Location
What is Commercial Property?
Commercial Property is the land that is used for commercial purposes or business activities. Commercial property typically relates to buildings that house businesses, but it also can ask for land that's wont to generate income or large residential rental properties. Malls, grocery stores, offices, industrial estates, manufacturing shops, and others fall under commercial properties. The efficiency of commercial properties includes factors such as sales prices, new construction rates, and occupancy rates, which are often used as a barometer of economic activity in a given area or economy.
Benefits of Commercial Properties
• Rental Revenue is High
Commercial property has a higher rental yield than residential property; in reality, commercial property outperforms residential property hands down. Commercial property yields are typically in the double digits. This is by far the most important value of investing in commercial real estate. Commercial property is unquestionably better if the investment is made purely for the purpose of earning potential by rentals.
• Regular Returns
Commercial property income is typically more predictable and stable than residential property income. This is a major gain as well. In terms of a lease or rental period, residential properties are fraught with some confusion. In the case of commercial land, the rental is more secure due to the longer lease term.
• Operating Hours are Limited
At night, most companies go home. To put it another way, you work while they do. Except for emergency calls for break-ins or fire alarms late at night, you should be able to get a sound sleep without the fear of getting a late-night call from a tenant who needs repairs or has misplaced a key.
• Price Evaluation is More Realistic
Commercial property prices are much easier to assess than residential property prices because you can request the current owner's income statement and decide what the price should be based on that. If the seller is working with an experienced broker, the selling price should be set at a standard where an investor will earn the area's current cap rate for the commercial property form they are considering.
Top 6 Cities for Commercial Property Investment
Despite a space crunch, India's financial capital remains the best bet for commercial real estate investors. Not only is there a steady rise in demand for office space in Mumbai, but the city is also seeing a boom in new commercial structures. For many years, many financial institutions have had their headquarters in South Mumbai.
Many offices are moving to Lower Parel and Bandra-Kurla Complex (BKC) as a result of the growth of new business parks that offer a variety of facilities such as parking spaces, restaurants, gyms, connectivity, and more. The city is being improved in terms of transportation and infrastructure, attracting major conglomerates searching for well-equipped large commercial spaces. This shift is raising stakes in Mumbai's office space market, providing an entry point for investors.
This city is the commercial real estate's golden goose. There are numerous factors driving the office space market in this area, one of which is the city's well-established IT sector, which provides base demand. Mega office space deals have resulted from the growth of e-commerce firms such as Flipkart and Amazon. More e-commerce companies are expected to flock to Bengaluru to open offices, suggesting that commercial real estate in the city will become more valuable. Another catalyst of commercial real estate development in the city is the burgeoning number of startups.
National Capital Region (NCR)
Against all odds, the office space markets in Gurgaon and Noida have remained involved in the real estate sector. Though Gurgaon is the preferred location for global financial and technical firms, Noida is quickly becoming the preferred location for many domestic giants. The rental yields in Delhi-NCR are about 8%, providing investors with a good opportunity to benefit. Along with serving current customers, the area is seeing an increase in demand for quality office space from businesses seeking to move to new locations.
The number of transactions for premium Grade A office space in Pune has been steadily growing in recent quarters. The increase in office space construction is being balanced by demand, which is primarily driven by the IT sector's growth. A number of international financial institutions have also leased space in the region, driving up demand and suggesting demand from a variety of sources.
Ahmedabad, which has long been one of India's fastest-growing cities, has only recently begun to realize its real estate potential. It is undergoing a building boom and population growth. There are many emerging and premium areas in the city, as well as a large number of high-income residents.
Ahmedabad-Surat-Vadodara is an up-and-coming metropolis cluster. Though Ahmedabad is Gujarat's largest city, Vadodara is a major industrial hub with major pharmaceutical and chemical companies. Surat's textile and diamond processing industries are well-known. The Delhi-Mumbai Industrial Corridor (DMIC) and the Gujarat International Financial Tec-City are expected to move the area forward.
Commercial real estate projects are a safe bet for investors looking for attractive returns, thanks to Hyderabad's rise as an ideal destination for multinational tech companies and global pharmaceutical majors, R&D centers, and global educational institutions.
Hyderabad's commercial spaces are enhanced by the existence of a flourishing IT market. Also, the Mercer Quality of Living Rating 2019 named Hyderabad the most livable metropolitan city in India. As a result, the best real estate company in Hyderabad will advise investors to invest in commercial property because it is a great way to earn money by leasing it.