When planning to invest in a property, most people limit their scope to residential options only. However, by doing so, they miss out on a potentially huge opportunity that can prove to be extremely lucrative for them in the long run. Buying commercial properties in Gurgaon, Mumbai, Noida, and other major urban centres of India can be a good idea for people as it can fetch them great rental returns.
Here is more on the top advantages of investing in commercial properties:
Flexible financing:
The financing options available for commercial real estate investments are greater than the ones available for typical residential properties. There are many banks and other lending institutions that offer a host of payment options to people who are actively seeking to invest in a commercial property.
Rental yields:
High rental returns are one of the most attractive characteristics of commercial property investments. The average rental yield of a commercial property can be 10% or more, with is greater than residential properties whose yield percentage usually does not climb up to double digits. Buy commercial properties in Gurgaon, Noida, and other such urban centres can be a wise choice as premium locations can even fetch investors a rental yield of up to 13% to 15%.
Consistent and regular returns:
Lease agreements for commercial properties are usually for a longer period of time as compared to residential properties. Usually, a lease is signed for a minimum span of five years in case of commercial properties. As a result, investors can be assured of consistent returns for a longer period of time.
Tenants: The tenants for commercial properties include retail chains, banks, and corporate enterprises. These tenants have superior reliability in comparison to residential ones. While families living in a rented house might relocate suddenly, the instances of shifting a whole business from one place to another at a short notice are quite rare. Hence, when renting out commercial properties, people can be assured that their tenants would not just leave at short notice and void them of the relevant monthly rental returns.
To attract the most reliable and affluent tenants, it is important that investors choose to buy a commercial property that is centrally located and features high-end urban amenities.
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