Top 4 Reasons To Invest In Commercial Property

You have heard many times from your parents that the best way to prepare for the future is by investing your money today. But no one tells which investment options to choose? We can see there are several different investment vehicles out there. One such investment is – real estate. A lot of people still have doubts and second thoughts about investing in residential or commercial real estate.

It’s true, whether you invest in commercial or residential real estate, it is a great way to grow your money quickly. Some prefer investing in commercial real estate while others prefer investing in residential real estate. It is difficult to determine which option is the best for investment, but it greatly depends on the purpose of the investor, the risk involved and the return.

There are a ton of great reasons why investing in commercial real estate is perhaps one of the best options for you. Historically, investing in a commercial property as an alternative asset has offered several investors with attractive risk-adjusted returns and portfolio diversification. But, many of us still don’t understand what is commercial real estate. So, first important thing is to know what is commercial real estate? Commercial real estate is a broad term describing any non-residential property used to generate a profit. It includes office buildings, industrial parks, medical centers, hotels, stores, There are several reasons to invest in commercial property in Gurgaon, let’s go through some positive ones:

Potential Source of Income:
Investing in a commercial property is better than residential property in terms of earning potential. You can purchase a residential property to live in and you can resale it later, but it cannot give you what a commercial property can. You can get 6% to 12% annual return of the purchase on a particular commercial property like Neo Centra Gurgaon, however, it can vary according to the location of the same, while the residential rentals are between 1% to 4% only.

Higher Rate of Interest (ROI)
Higher Rate of Interest (ROI) means a safe investment as it will be a source of income for the investor. If you invest in the right commercial property like Neo Centra, then it can surely get you a higher return on investment. The right location of the property is also a huge factor. Commercial properties normally give 9% to 12% rental yield, which is far better than a residential property.

Great Resale Value

Why we invest in any property? To earn profit and resale of the property is one such act. With the expansion of the project or development in the nearest locality, commercial property will develop their market value. This fact attracts the investors because this is a major factor to earn profits.

Extended Lease Duration
Contrary to residential leases, the lease duration in commercial properties is generally for 3 years to 10 years. This is because the tenants in commercial properties tend to stay in the premises for a longer period.