Commercial Realty : An Attractive Investment Option
Ravindra Sudhalkar, ED & CEO at Reliance Home Finance feels with interest rates on loans remaining low for a long time, it offers a great opportunity to get good bargains in commercial real estate in the next few months. The International Monetary Fund (IMF) has predicted that India will be one among the only two countries in the world to see positive growth in their economies following the Coronavirus crisis. This factor is likely to lead to greater investment interest from global businesses in India, and even encourage some companies to relocate their bases from China to India. Investing in commercial realty is, therefore, an attractive option in the current scenario as rentals and resell prices are both likely to increase, mostly by the year-end and early next year, after the Covid-19 crisis ends. Accessibility and Location “Always select a location which is well developed has better accessibility. An area well-connected with public transportation system has better chances of rental income and gives a higher return on investment,” he says. Amenities and Parking Properties that have been attractively planned and have all basic amenities, including ample parking space, fetch better rates. “While selecting a property, the final look and feel and special amenities such as the number of lifts, large and well-decorated lobby areas with high ceilings, modern toilets, etc should also be taken into account, “ he adds. Rule out any legal issues Mr. Sudhalkar is of the view that it best to rule out any legal issues regarding the property before making the buying decision. Hence, he advices to do thorough due-diligence about the land on which the property is built on, the builder’s reputation and track record before investing. Judge the supply situation Markets in which supply is expected to exceed demand tend to give lower rents or resell value in the long run. “It is always better to study about the current and future demand and supply situation in the market where the property is located in,” he says. Go for ready properties The current phase of lockdown has halted construction activities across the real estate sector and there is likely to be infinite delays in completion till the COVID-19 episode comes to an end. Mr. Sudhalkar is of the view that it is better to invest in ready or almost-ready properties by good builders if the investment is made in the short-term.
Tags : EXPERT ZONE Real Estate Investment construction Reliance Home Finance Commercial Realty