Buying a Commercial Property That Guarantee Success and Prosperity

The real estate market in India has grown by leaps and bounds since the implementation of RERA, Smart City Mission and Start-up India Mission. These schemes created high demand for commercial establishments. As the Indian population is growing rapidly, the demand for commercial real estate will never decrease. Therefore, investing in commercial properties can help you achieve a higher return on investment. Okay, investing in a commercial real estate can be a bit scary because you need to invest more money. But with a few simple tips in mind, you can invest in a property that will help you emerge successfully.

1. Research the market

Before investing in real estate, you need to pay attention to market trends. Also find out what kind of qualities are in high demand. Before deciding on what to buy, you need to analyze the scope of future development in the regions.

Buying a property in a developing area is much better than buying a property in a well-established location. The former choice is cheaper and it gives you a higher return on investment.

2. Consult a financial expert

When you have no prior experience in this area, it can be difficult to estimate the exact cost of purchasing a commercial actual. Therefore, before purchasing a property, you should consult a financial advisor and plan your budget accordingly. Tax implications can be complex to analyze in a real estate transaction.

3. Analyze your financial situation

Before investing in a commercial establishment, you should analyze your financial situation. Make sure you will be comfortable paying its EMI, even if there is no rental income from the property. Also, before purchasing a property, you should analyze the scope of income from it. In addition, you should also calculate the risks involved in the entire business.

4. Plan your layout well

Whether you are building an office space, shop, mall, or simply renovating it, the layout has a big impact on operational efficiency. This will directly affect your scope of making money by rent or reseller. Therefore, you should prepare a smart plan to refurbish or design the property. Seek the help of an architect if needed.

5. Choose the right builder

You should always buy a commercial property from a reputable builder. Therefore, does a background check of the builder and take a review from those who have purchased the property from the builder. Also, make sure the builder is specialized in the field. The history of a builder should also be considered in the context of the completion of the project.

Trends those are likely to shape the real estate market in 2020

2019 was a relatively challenging year for Indian real estate, which faced a slowdown in the sector. Nevertheless, the recession made Indian developers aware of where they stand and the drawbacks are to blame. As a result, industry experts expected, in 2020, to adapt to several changes in terms of preference, demographics, technology and policies, in a bid to boost buyer sentiment and promote affordable housing sales.

Even with the slowdown in the sector, sales showed some signs of improvement in Q3 and Q4 of FY19, due to redemptions made by developers in their product offering, based on an understanding of consumer demand. New age developments are more suitable for millennial, which are actually the target group of many affordable housing developers,” says Dinesh Doshi, Managing Committee Member, CREDAI MCHI, Raigad.

Top Realty Trends in 2020

Real estate to operate the end user

The market is becoming increasingly end user driven. “While the number of real estate investors is already small, this segment is shrinking further. In the coming year, it seems that almost all of the demand will come from end users, with the supply of products targeted primarily to them, says Mayur Shah, Managing Director, Marathon Realty.

Demand to increase compact housing, co-working and commercial space

The demand for 'compact housing' is likely to increase a great deal across the country. In different regions, homes whose price is right have the potential to elicit good feedback from consumers. Developers will address this challenge, going further,” says Shah. The healthy demand for co-working spaces seen in 2019 is likely to continue until 2020. The growth of the commercial real estate segment, which is attracting foreign investments, will also help in improving the economy.

Heavy Dependence Technology

New-age customers rely heavily on technology and social media as they enter the housing market. Thus, it will become imperative for developers to adopt and leverage technology, to engage with customers, to enhance the experience at every point of view and to create positive perceptions about the field. Adoption of technology will also increase efficiency, quality and transparency, which will lead to change in the sector, ” he explains.

Challenges facing real estate in 2020

The industry is seeking support from the government, to overcome some challenges and to emerge from the recession. While the government has taken several steps so far, continuous reforms are necessary in many key areas.

·     Industry status and single-window clearances

·     Funding from banks

·     Financial bailout

·     GST burden and input tax credits

·     High stamp duty charges

·     Home loan interest rates