Investment decisions are by their very nature, risky. If you are a prudent investor, then your job is to ensure that the capital you invest, not only gives you a good return, but is also least likely to be affected by the vagaries of the market. The problem an investor face when he is looking where to put his money, is the wide range of options available for him.
This could range from fixed deposits, stock market, gold, or real estate. If you look at each of these carefully, you will find that while fixed deposit is very secure in nature, it gives you very little return. Stock market on the other hand, needs careful study of both fundamental and technical aspects of the stock, which most of the investors are not even aware about. The last option on this list is the real estate, which if carefully studied, will be able to provide you with not only a secure investment option, but also one where you will get the maximum amount of return. If you are weighing the option of whether to invest in residential projects in New Delhi, or in a commercial office space, then we suggest that you should look at the commercial office space option more positively. If we look at the real estate market now, we will find that it has the rock bottom thanks to the demonetisation.
Additionally, the oversupply of office space has affected the price of the real estate property adversely. Therefore, if you want to invest your money, this is the right time to invest in real estate sector, as you can buy lucrative properties at a rock bottom price. As there is a strong, stable government at the Centre, the economy of the country is growing at a steady rate. Moreover, as our economy grows, there will be greater demand for office space for those companies that want to expand their operations.
As this demand grows and in future,it outstrips the supply, then you will see that the office space price in the market has started appreciating faster. Additionally, you will find that the rentals from the commercial property far exceed those that you get from residential properties. Therefore, this is the right time, to invest your money in the commercial real estate to benefit from the appreciation of the property price. Delhi will give you a wide range of options to invest your money in the commercial properties.
If you go by the recent market survey, you will find that Delhi has the highest concentration of under construction, real estate properties in India. Furthermore, the values of these properties are nearly 33% down of their original value. This makes the city, the perfect investment option for those who are looking to gain big time from investing their money in the real estate business. If you are new to investing in the real estate business, then we suggest that you take the help of some expert to make the right investment decision.
You should hire the services of the best real estate developers in Delhi, so that not only you find out which property is available at a very lucrative price, but will also be able to invest your money smoothly without getting yourself entangled in a lot of legal issues. As we have mentioned earlier, when you invest in the commercial real estate, you will not only get capital appreciation, but also get regular income, as the rent from the commercial office space is much higher than that which you get from a residential apartment.
Is it a good time to invest in the real estate sector?
Whatever business you enter, the one thing is constant in all of these, the right time. You should be able to figure out which property will give you the maximum amount of return and the right time when you should invest in that property. If you make a mistake in any of these two parameters, then you will find that your capital has either stagnated for depreciated over time. As the Indian economy grows, the prices of the office estate will see a marked upward swing, as new enterprises are registered to start their business or the established business tries to expand their footprint even further. In both of these scenarios, companies will need new office space for their business.
The interesting thing about the demand for office space is that, it does not depend upon the domestic enterprises only, but is increasingly affected by foreign investments. Since last one decade, multinationals have poured in billions of dollars as investment in the Indian market. This led to a high demand of office space in both Tier 1 and Tier 2 cities.In addition, as the investment trend shows that this will continue in the foreseeable future as well. This will ensure that the price of office space in big cities like Delhi NCR will continue to rise in the future as well. If you look at the broad parameters of investment, you will find that there is a higher offtake of loans for commercial real estate projects.
The recent findings of the Reserve Bank of India shows that the total loan amount for real estate sector in the last six years has increased by three times. The reason is, as the economy grows, it is not only the company, but also lawyers, doctors, insurance agents, chartered accountants, travel agents and a whole host of other services that needs office space to run their businesses. All these demands are improving both the price of the office space as well as the rent payable on it. Therefore, investing in this sector makes a lot of sense, as it will give you a greater return, which very few investment options can match.
If you do not have a big budget, then you should invest in small office spaces. You can then rent these out or sell them after the price of the property appreciates significantly. If you look at the changing landscape of real estate in last 3 to 4 years, you will find that the business sentiment has improved significantly, thanks to a government that has come with a clear mandate. Furthermore, the new laws that are enacted to further liberalise FDI investment in the real estate as well as about bringing transparency in this sector has improved the investor confidence significantly.
As Indian economy is described as the fastest big economy in the world. More and more multinationals are coming in India to set up their shop and do business in this high-growth market. This influx of foreign companies in the Indian market has a positive impact on the prices of office spaces all over the country. If you just look at the yield that commercial estate provides in India, you will find that it ranks as one of the highest in the world. In most cases, you will get 6 to 8 percent of returns and in some exceptional cases, the return is as high as 10 percent.
Many companies see this as a great opportunity to increase their capital by investing in commercial real estate sector of India. Moreover, as Delhi is the capital of the country, where the maximum boom in commercial real estate is happening, it makes sense to invest your money in this city to get the best possible returns.