Commercial Real Estate has been in demand for years now. Apart from MNCs, IT companies and ITes, the robust start-up ecosystem and co-working spaces have pushed the requirement for commercial real estate further. Over a period of time, business requirements changed, which drove the commercial real estate sector to adapt to these changes. Nowadays companies are not just looking for an office space, but more than that. The change in mindset and business needs has increased the demand for Grade A office spaces.
You ask, ‘Why Grade A buildings?’ Companies are looking at Grade A office spaces as they have so much to offer such as a state of the art designs and architecture, well-managed office spaces, highest quality buildings, and amenities. They have a good security system and HVAC in place.
Grade A office spaces are the primary reason for the increased FDI in the past years. As per the finance minister, Nirmala Sitharaman, April to November 2019 received FDI of $24.4 billion and $21.2 billion in the same period the previous year. So if you are looking to invest in commercial real estate in 2021, then Grade A buildings are what you should be targeting.
Wondering how you can own a Grade A building? No worries! This guide will provide you with tips on how to become an owner in Grade A buildings in 2021.
Fractional Investment: Investing in commercial real estate is different from investing in residential properties. It is not that easy and convenient and comes with its share of problems. For instance, investing in CRE requires more capital compared to any other real estate investment, it has a high rate of interest and there is an added issue of getting loans. In this case, you can opt for a fractional investment. This investment is a relatively new concept and is trending as it offers excellent benefits. For those who don’t know what fractional investment is, it is basically, the cost of an asset, that is divided among individual shareholders. With this type of investment, you can be an owner of a Grade A building and enjoy the capital appreciation, rental yields and various other benefits. Make a small investment today, sit back and enjoy the high returns over the years.
Choose the right Area: Now that you know the best way to invest in Grade A buildings without burning a hole in your pocket, the next step is to choose the right location. The key is to invest in a developing area of the city than a well-developed locality, as the buildings are available at reasonably better prices and offer higher returns on investment. While selecting the location, you should also keep in mind the connectivity and various commuting options available for the people. All this adds up to the area’s demand.
Invest in the right stage: Each stage of the building comes with its significant risks and benefits. So, you must understand the risks at hand and decide for yourself. While under construction buildings offer the lowest price range, there are chances of delay in completing the project. However, if you decide to invest in a building that is completed, there is a risk of capital appreciation. But investing in a completed project makes more sense and offers better advantages. Also, make it a point to research the builder before investing.
Approach an Industry Expert: When making a sizable investment, it is safer to go through an industry expert. Because industry trends change from time to time and only an expert will be able to save you from potential risk and guide you to make the right investment.
YieldAsset, the most trusted commercial property investment platform for secure and high-yield investments, is the leader in hassle-free small investments in Grade A commercial real estate. The team at YieldAsset — the pioneering commercial real estate company in India — has an overall experience of more than 50 years in real estate and finance. To mitigate certain risks and make a fully informed decision of investing in Grade A commercial buildings, approach the team at YieldAsset today!