Given the fluctuating stock market and unpredictability of other investment options, the real estate market is seeing a revival in form of large investments in the commercial properties. The formation of REITs, a concept similar to the mutual funds for investment in real estate is another catalyst in the revival of the commercial properties in Greater Noida (West).
The current economic situation and market uncertainties have led investors and people in general to explore safer investment options which may also generate a stable source of income. Real estate is considered as the safest investment option and is usually risk-free, it also offers a decent growth and can be a regular source of income in form of lease rentals.
The current market situation has stabilized the prices in the real estate market, making it the best time to start investing in the commercial property in Greater Noida (West). Real Estate value in India has rarely seen depreciation and at times the appreciation in value may be at a slower rate but it surely gives a better return on investment in comparison to other stable investment options.
If you are still sceptical about investing in the commercial real estate in the Greater Noida (West), below-mentioned reasons will surely make you give another thought on buying commercial property for investment.
High Return on Investment
The appreciation on commercial property in Greater Noida (West) is anywhere between 3%- 7% per annum depending on the factors such as locality, brand and connectivity. It is due to the fact that the number of commercial properties per square kilometres is way less than residential properties and also the commercial property in Greater Noida (West) has higher lease rental per square feet than the residential properties.
Regular Source of Income
As stated above, commercial properties in Greater Noida (West) offer better appreciation and they can be a regular source of income in form of lease rentals. The rate of lease rental depends upon the location etc. nevertheless, they generate more income than a residential unit. The regular income and long term appreciation combined will give you more Return on investment than other volatile investment options.
Low Maintenance Liability
Any real estate has a maintenance cost associated with it, which has been a major deterrent for the investors, however, the maintenance cost of modern commercial High Street shops in Greater Noida (West) is way lesser than residential or properties in malls. Also, the maintenance burden of commercial property is usually borne by the leaseholder rather than the owner.
Though the liquidity in real estate depends upon the location, connectivity, future ROI etc. commercial properties offers higher liquidity as the demand for commercial property in the Greater Noida (West) is usually higher. Also, as stated above the number of commercial units are far lesser as compared to the market demand, which is the main factor for greater liquidity for commercial property.
Establishment of Regulatory Bodies
One of the biggest factor in the revival of real estate sector has been the establishment of Real Estate Regulatory Authority (RERA) in India which has given credibility to the realtors and assurance of investment safety to the investors. The investors who were apprehensive until now due to the stalled projects, delay in delivery etc. are now confident investing the real estate and are considering the buying commercial properties in Greater Noida (West).
Apart from the above factors coming of Real Estate Investment Trusts (REITs) has breathed a new life in the real estate sector. While buying the commercial property for investment purpose or business is a better option still one should not neglect factors such as Location, Property Type, Connectivity, and the project USPs that will help you get higher ROI. One needs to understand and identify the prospects before deciding on an investment.