Why it’s a Good Idea to Invest in Retail Spaces in Noida?

Deepak Rawat
4 min readJun 21, 2019

Putting resources in commercial properties is a brilliant decision, particularly for the buyers who aim for income security and cash flow. Be that as it may, effective commercial real estate investment needs a decent comprehension of the somewhat complex factors which impact the market, including the one of a kind financing needs, the leasing arrangements, the property management options and last but not the least great aptitude for all the potential risks. When you are at ease with all these factors, you will find a reliable platform that will take you to your most successful retail spaces in Noida.

What Are Commercial Properties?

In layman’s language, commercial property is the one that get leased out and provide its occupant with a workspace rather than a living space. Commercial properties can include, however not constrained to –

1) Retail properties — The single rule that follows when buying a good retail property is its location. Buyer must consider a retail property available at an easily accessible location that is convenient for the suppliers and clients alike.

2) Industrial properties — Industry gurus consider industrial properties as the most volatile when it comes to returns.

3) Office spaces — Out of the three types that we are discussing, office spaces are the most secured investment options since the tenants remain in their premises for longer period of time, which means nil vacancy period and regular income for the buyer.

Since, we have already mentioned that commercial properties are not just limited to these three, other include — restaurants, ware houses, strip malls, hospitals and shops.

It is important to comprehend the market drivers before jumping on to the buying decision. The basic market driver for any type of retail property growth is its demand. But then, there are factors that drive demand, which are population growth and the economic factors. For the commercial real estate to prosper, a solid and strong economy is needed. The booming commercial markets are basically supported by strong local, national and international economies.

A few other factors that might influence commercial real estate demand include (again these are not the complete list)
1) Demographics
2) Interest rates
3) Retail spending
4) Infrastructure development
5) Management

Why it is beneficial to invest in retail property?

You might hear people saying, if you want to grow your wealth — investing in retail properties is a brilliant choice. Following are a few reasons that back this saying –

1) Income stability — One significant point to note about retail properties is that, in addition to the fact that returns are a lot higher, investment in them are more secure. When comparing to residential properties that sees short-term leases, leases in retail real estate are for longer periods, somewhere between 3 -10 years.

2) Lower risks — When compared to other modes of investments, which are residential property or even stock market, an investment in commercial real estate sees lower risks. By its very nature, retail property offers the advantage of low to almost nil vacancy rate.

3) Higher income potential — When compared to residential properties, retail property draws in higher rental amounts, per square foot, which means as an investor you will have a better chance of earning more income and more profits with commercial real estate.

4) Asset value appreciation — Retail real estate investment has verifiably given an incredible value appreciation, which not only meet but exceed other types of investment. The major factor that contribute to this — proactive management adding technological and/or infrastructural improvements to the property, which thus improves the usability and desirability of the asset.

5) Tax benefits — Investment in retail real estate furnishes buyers with exceptionally liberal tax benefits. With handy building allowances to depreciation allowances on machinery and equipment.

6) Costs managed by Tenants — No all, but in many retail spaces, the renters or the occupants for the most part pay the majority of the building’s running costs. Apart from paying their base monthly lease payments, the tenants also pay their pro rata portion of the property’s expenses, maintenance, real estate taxes, and property insurance.

With the above information in mind, if you are looking for retail spaces in Noida, we suggest you to explore and invest in Anthurium. Anthurium is a business park exclusively designed in sector 73, Noida for businesses who believe in delivering productivity and efficiency. For more information on property type, location and builder reputation, feel free to explore us at https://www.anthurium.in/commercial-office-space/

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