Guidelines for Commercial Property Investment

Post Details
Post By By Buniyad

06/28/2016

commercial

Careful consideration and thoughtful planning / research are required while investing in commercial real estate land in Delhi NCR, especially when the markets are booming. when narrowing the search for the commercial property of your choice, factors like location advantages, job market of the area, infrastructure planning of present and future of the location, people inflow and outflow in the area are the vital points to be studied. Even when there are stipulated broad guidelines for purchasing a commercial asset, prime commercial properties requires very many stringent investigation. This is just because a prime location commercial property has multiple benefits.

Finding tenants for primly located commercial property is much easier than location with less demand. Getting a tenant in short time is more important because this is important for financial calculations. If the commercial property is kept vacant for long period there is a definite loss in terms of money. It is very obvious that banks shall be funding loans quickly to the prime location commercial projects. The risk of capital loss is very less in this case.

To control attrition is very important, if the commercial asset is in the prime area, to get good employees for longer duration is possible.

Purchasing an office space in a superior location for own use is perhaps one of the commendable business idea for any company. When commercial office space is concerned, Noida can not be ignored. Demand of small or commercial Shop  for sale in Delhi NCR is high as compared to other location. Apart from making traveling easy, if the commercial offices are situated in prime location there will be good visibility for the firm and the reputation of the company shall be kept high. An office in prime spot demonstrates a company’s worthiness to their clients, vendor and business associates. Company’s balance sheet also will become healthy from the capital appreciation of commercial property.

Prime Locations

Prime office spaces are confirmed to provide growth in business as well as return on investment. But the big question is what this “prime” location is, in commercial real estate?

Accessibility, infrastructure support, quality of buildings in the location, neighborhood of high profile companies are the aspects that makes an area prime. The following parameters shall be considered to determine the same.

  • What all are the transportation modes available to reach the office?
  • How close are the office premises to the major commercial hubs?
  • Trend of demand-supply gap?
  • Corporate standings of tenants looking for commercial property in that area
  • Infrastructural developments and neighborhood development happening in the area (shopping malls, food outlets, malls,
  • Entertainment zones and so on)
  • Development planning of the particular location.
  • Commercial transactions status in area.
  • Finish of buildings in the locality.

The location is considered prime if the above mentioned categories are true.

Prime Properties

Getting a property in prime location is not only the factor that needs to be considered, the property should meet certain standards also to have the tag “prime” in it. Near about 30 vital technical specs should be met by the commercial property if this has to be claimed as “prime”, experts are available to get the same certified. If investor is putting his money in ongoing property then developer’s record for hand over, quality of construction, risks involved in construction also has to be measured.

Assessments for repositioning / refurbishment and refinancing should be duly carried out. the prices of commercial property in prime location shall also be high. Careful study should be done in this case for capital appreciation and returns on investment. Services / consultation from well versed real estate agents should be taken before investing money on commercial property either for self use or investment or rentals. the experts can inform about the location advantages, drawbacks, property value, vacancy rate etc. This will also reduce the risk of low return on investment.

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