Property is the best investment and that’s a truth that no one can deny. For ages our ancestors have been using property as a collateral for loans. When we say property what comes to mind first and foremost is resident property. But we’re here to talk about commercial property or commercial office spaces. In the last four to five years, construction of commercial projects in Mumbai has been on a standstill. However, due to the boom in businesses the demand for commercial office spaces is ever increasing.
The increasing demand and lack supply has resulted in a substantial rise in the rates as well rent for these properties. This makes this the best time to invest in commercial projects in Mumbai. So if you still have any doubts about why you should invest in commercial office projects right now, here are five reasons why.
- Stable Economic Conditions: The Indian economy is on a steady growth ladder. It is poised to grow at 7.3 per cent this year. Inflation has been controlled and the manufacturing sector is gradually growing too. The IT sector is booming with successful e-commerce ventures and other IT enabled services. All this has created an increased demand for commercial office spaces.
- Low Capital Values: Even though it promises such amazing returns, a commercial office spaces is considerably cheaper than any residential property. For example a commercial property in Gurgaon, which is a booming business area will cost you lakhs whereas residential property around the same area can cost you double that amount.
- High Rental Yeilds: A commercial office space can easily get you double of what rent you can get for a residential property of the same area. In residential property, annual rental yields are around two per cent, while in the case of office space, it is eight to 11 per cent and picking up.
- Easy to find tenants: There are no restrictions when it comes to finding tenants for a commercial office space. The same cannot be said about resident property in India as every society and owner has his or her own set of restrictions when it comes to finding tenants.
- Optimum Timing: With the Indian economy being poised to grow at 7.3 per cent this and inflation having been reigned in this is the best time to invest in commercial property as businesses too are growing and expanding.