Is investing in commercial property a good idea in India in 2021?

In the first place the answer to your question is yes! To provide value to my statement I have provided the reasons why investing in commercial property is a good idea in India in 2021. If you are new in the real estate market and planning to invest in commercial properties then you should have a clear understanding of what is commercial real estate?.

Commercial real estate comprises the properties that are exclusively used for commercial purposes. Commercial real estate is of various types: retail, office space, warehousing. Shops in markets,

 hotels & resorts, strip malls, restaurants, and healthcare facilities and banks are also some of the types of commercial real estate properties.

To provide your commercial property on rent for the above mentioned purposes, there are many conditions and the topmost condition is your property should be located in the commercial area. 

You can also provide your property for co-living spaces or PGs in the cities like Bangalore, Gurgaon, Mumbai. This is a new style of living, where around 10-12 people living in a complex share kitchen, living area, play area, terraces as is common for all the residents. Co-living space is a new concept for real estate in India and this type of property has extremely high returns.

• When we talk about commercial real estate the rental yield is high upto 15% and capital returns are upto 12%  guaranteed because of the high demand of commercial properties.

• One can argue - there are many high-moderate return investing options available such as stock markets, fixed deposits, gold, then why invest in commercial real estate? This is because you will not receive the recurring income in any of the former options. Stock market investments are usually high risk. Real estate investments of any kind guarantee recurring monthly incomes as monthly rentals. Commercial real estate has the highest rate of returns, upto 12% guaranteed, without any risk.

• Commercial real estate retail property is considered better than residential real estate property for investment purposes because returns are better. Sharing rental yields for some of the most popular commercial real estate options:

  • Retail commercial property like shops in malls: 8-9% rental yield

  • Office Spaces in buildings/IT parks: 6-7% rental yield

  • Warehousing to big ecommerce companies: 5-6% rental yield

  • Residential properties: 2-3% rental yield. 

• Giving your property for warehousing is another great move to revise returns each month. You can also play smart, invest in a shop located in a commercial area and then you can lease your property to a Bank ATM. You will receive a few thousands per month as rent depending on the location. 

• You must have heard of smart investments, the investment through which you can make money while you sleep. I would like to add further, that commercial real estate is the perfect option to do so.

Want to rent my property to Amazon or Flipkart or Myntra

How to rent a suitable commercial space for bank and ATM installation?

At last I would like to conclude if you are planning for investment in commercial real estate then you should not delay any more.