Commercial Real Estate has been a thriving investment option in India even during the pandemic when work from home became the new normal. Investment in Commercial Real Estate continues to be a lucrative investment choice among the various investment options, owing to its high capital gains. Commercial Real Estate Investment in India goes on to be a valuable source of monthly income.

Further, the growth in the IT-ITES service and the demand for Grade A office spaces has pushed the growth of the sector, attracting top foreign investors. To add to it, the various government initiatives like RERA, REIT (Real Estate Investment Trust) and InvIT (Infrastructure Investment Trust) have reassured the investors of transparency, which has further increased the investments, especially in Grade A office spaces. But just like any other investment, there are certain things you need to consider. Here are a few dos and don’ts when thinking of making an investment in commercial real estate.

Dos:

  1. Have a Plan in Place: This is a crucial step when you are looking at investing in commercial real estate. Many investors invest in a commercial property only because it seemed like a good deal but later don’t know how to fit it into their strategy. Most seasoned investors don’t just have a plan, but also have a bigger picture that they focus on. They think of their investments in the long-term. For example, any risks at hand, capital growth, cash flow and so on. Having a plan in place will help you invest in the right type of property.
  2. Consider trusted Platforms: Commercial real estate is a huge investment, so it is vital you look at trusted companies and platforms that offer high-yielding investment options. YieldAsset is one of the pioneering commercial real estate investment firms and is one of the most trusted platforms for high-yielding CRE investments. The team at YieldAsset do all the research for you. We have the best Grade A commercial spaces listed on our platform with the best build quality and tenants of unmatched repute. With Yield Asset, you can now invest in commercial real estate online.
  3. Conduct a Thorough Research: So you have the commercial property that fits your plan and is from a trusted company or listed on a trusted platform. All is good then, right? Before you invest in the property, you must look at the condition of the property, the location, the kind of tenants it will attract, if it has the scope of growth in the next five years and so on. Recognising investment opportunities and considering key factors are crucial before investing in commercial real estate. 

Don’ts:

  1. Don’t Invest in CRE Single-Handedly: Unlike residential properties, commercial real estate is far more expensive when you are looking to invest in it. While you could always look at taking a loan, why do that when you can own a Grade A commercial property with a small investment as low as 25 lakhs? Fractional investments are comparatively a new concept in India, but they are taken over the industry by storm. Make a fractional investment in commercial real estate online and enjoy the high appreciation value of the property. 
  2. Don’t Overpay: This is a plausible situation, and it happens because most often, investors don’t research well about the property they are interested in. Getting to know the market and the paying price per square meter is most important. By conducting proper research, you know the value point and are not focused on the monthly cash flow.
  3. Don’t Believe the Hype, Check for Yourself: Commercial Real Estate Investment in India is an excellent investment, and even now, companies are looking at Grade A office spaces. Many reports suggest that commercial real estate will continue to grow in 2021 and beyond because of its lucrative returns on investment. Further, in a recent article by Financial Express, Grade A office spaces are becoming the most preferred choice in CRE. With many businesses looking to resume operations, there will be a rise in demand for Grade A office spaces.

Since commercial real estate continues to grow, there is no better time to invest in it than now. With YieldAsset’s fractional investment, the dream of owning commercial property can now come true. Fractional investment helps diversify by investing in multiple properties with smaller investments. YieldAsset — The most trusted commercial real estate investment platform in India — will help you earn a monthly income and build long-term wealth with the best CRE companies in India.

Leave a comment