Why Should You Invest in Commercial Property?
Much has been said and written about residential property investments but commercial office space in Noida is still evasive for the average investor. Due to the lack of market insight and investment savvy common people refrain from venturing into this high risk high return sector. However, we have brought here an insight into the market facts, which show if due care is taken it is not a bad idea to make some handsome profits.
In NCR, the otherwise hot spot of realty business, non-residential property is available in three forms, retail, industrial, and office space in Noida; and investing in these is altogether a different ball game. So here are a few points which will familiarize you with it.
Returns
As compared to residential investments, these definitely entail a better return. Though, they come with a greater risk as well as the money involved is usually higher. According to the present market trend you can easily expect a return of up to 12% within a span of 2 years, given to the popularity of commercial office spaces in Noida.
Risk
As already said, the risk involved is a few notches up than in residential property. For instance, if you own an office space in Noida, then finding the right tenant can take longer than residences, while you will have to pay all outings during that while. However, once let out, it fetches more returns.
Lease Duration
The property is let out for a longer duration, where a residential lease can be as short as six months a commercial lease usually is not less than 5 years, with a clause for renewal.
Quality tenant
Letting out your property to a good tenant is essential for both residential and non-residential entities. However, big companies or government organizations are considered to be best tenants as they engage the property for longer and are unlikely to default on rent or drag along any litigation.
Entry Costs
The initial amount required for investments is greater than residential property. A retail space in posh location gives profitable returns but needs extra pull-up initially.
Maintenance
Furnishing or renovating a residence is cheaper as compared to this. Costs like central air conditioning, fittings, furnishing, etc. can be a lot heftier than kitchen cabinets and wall paint. Though, they are barely borne by the owner. Alternatively, you can always hike up the rent if you are letting out a furnished place.
Outgoings
Another benefit of investing in these is that any bills or expenses like maintenance, taxes, and insurance etc. are not incurred upon the owner. This means that most of the rent collected is sheer profit, unlike residential property.
Thus, investments in retail spaces are quite profitable if you have the initial money to invest.
In NCR, the otherwise hot spot of realty business, non-residential property is available in three forms, retail, industrial, and office space in Noida; and investing in these is altogether a different ball game. So here are a few points which will familiarize you with it.
Returns
As compared to residential investments, these definitely entail a better return. Though, they come with a greater risk as well as the money involved is usually higher. According to the present market trend you can easily expect a return of up to 12% within a span of 2 years, given to the popularity of commercial office spaces in Noida.
Risk
As already said, the risk involved is a few notches up than in residential property. For instance, if you own an office space in Noida, then finding the right tenant can take longer than residences, while you will have to pay all outings during that while. However, once let out, it fetches more returns.
Lease Duration
The property is let out for a longer duration, where a residential lease can be as short as six months a commercial lease usually is not less than 5 years, with a clause for renewal.
Quality tenant
Letting out your property to a good tenant is essential for both residential and non-residential entities. However, big companies or government organizations are considered to be best tenants as they engage the property for longer and are unlikely to default on rent or drag along any litigation.
Entry Costs
The initial amount required for investments is greater than residential property. A retail space in posh location gives profitable returns but needs extra pull-up initially.
Maintenance
Furnishing or renovating a residence is cheaper as compared to this. Costs like central air conditioning, fittings, furnishing, etc. can be a lot heftier than kitchen cabinets and wall paint. Though, they are barely borne by the owner. Alternatively, you can always hike up the rent if you are letting out a furnished place.
Outgoings
Another benefit of investing in these is that any bills or expenses like maintenance, taxes, and insurance etc. are not incurred upon the owner. This means that most of the rent collected is sheer profit, unlike residential property.
Thus, investments in retail spaces are quite profitable if you have the initial money to invest.
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