How important is ROI in commercial investment?

You are currently viewing How important is ROI in commercial investment?
  • Post last modified:October 8, 2021

There are many things that makes investing in a commercial property more profitable than investing in a residential property. Whether you are a high net worth individual looking for an avenue to get more out of your investments or an institutional investor looking to diversify their portfolio, you will find investing in commercial real estate a more lucrative alternative. The better profitability in commercial investment is majorly owing to the relatively greater initial investment it requires. So, if you have enough to spare, you should eye the commercial market as a better investment opportunity.

If the opinion of experts is anything to go by, then commercial properties are amongst the most stable assets in the current real estate landscape. Investment in commercial properties like IT parks and shopping malls in Ghaziabad and other locations can reap great rewards. No wonder there are investments flowing in in commercial properties in Delhi NCR, Mumbai, and Bangalore amongst other cities.

The demand for office spaces and commercial shops in Ghaziabad and other locations is going to increase significantly in the coming time. This is contrary to what many people have been thinking post pandemic. While many people are still working from home and preferring to shop online, the time when all these pandemic-induced changes return to normal is not too far way. And thus, investors shouldn’t pass on any investment opportunity in office spaces and high-street commercial projects in Ghaziabad and other locations in Delhi NCR and other metro cities. If given time, these investments could go beyond their ROI expectations.

There is currently a shortage of commercial spaces in prime locations. However, commercial projects like Himalaya City Center, the first shopping mall in Raj Nagar Extension, Ghaziabad, are making up fast for the shortage in numbers. As we alluded to a little earlier, investment in commercial shops for sale in Raj Nagar Extension, Ghaziabad, and other cities, helps investors diversify their portfolio.

And some commercial developers are also offering investors lucrative plans to attract them. Some of these plans include lease guarantee after possession and assured return on investment amongst others. However, you should get all these things clarified before you get into a professional agreement with the developer. And even if you are not getting these deals, you should still go ahead because you are anyway going to reap great rewards over a period of time. Also, you can get a larger part of the property value financed.

Amongst the many benefits of investing in a commercial property is its higher rental value than residential properties. Rents for commercial properties are typically higher for properties located in prime locations. For instance, if you buy a commercial shop in Raj Nagar Extension in Himalaya City Center, which is located in a prime location, you can expect your property to give you a higher rental return.

Also, the chances of a commercial property remaining vacant for a long period of time are very small, especially if it is located in one of the metros or their surrounding areas. This helps the investors in getting a regular flow of income every month.