Friday, November 26, 2010

Buying Commercial Space can be Sound Investment Decision

Indian economy is slated to grow at a colossal rate of over 9% in the coming years. Large consumer base and younger population have been two important reasons which kept our economy almost insulated when there was an acute recession worldwide. Contemporary robust and growing economy promises two things for any business:
  • Established businesses will consolidate and grow.
  • New businesses will be launched.
Now, how do you get profited from this or what should you do to tap some money? You can buy shares of various companies but that can be a risky proposition, remember the near slump of Sensex from 20K to 8K in the wake of global recession. Or, you can invest in real estate. Well, the real estate investment involves:
  • Residential apartments
  • Housing plots
  • Industrial plots and
  • Commercial space
We will focus on the commercial space which further involves shops and offices. As you will see, there are many developers coming with the idea of inclusive participation of investors in the development of commercial projects. The rental returns from such commercial investments are approximately pegged at 1% which means that your investment will be recovered in 8 years. If you see on yearly basis then it still comes out to be 12 % which is greater than any bank’s rates on fixed deposit. Also, add to it the price escalation of the space which increases almost by 12-20% every year. The cumulative return on your investment comes out to be 24-32%.

I hope you would have got a fair idea regarding the huge returns on commercial space. And, the best part is the fact that the investment is completely secured.

Hence, if you want to rent out a residential property noida or a portion of your residential home, you will do the same with the assistance of property dealers. Similarly, if you need a home on rent, real estate brokers in the city is the right person to contact.