investing in commercial real estate
Quick Tips

5 Advantages of Investing in Commercial Real Estate

If you are planning to invest in real estate for the first time, you may be feeling a little lost when it comes to choosing a property that will give you the biggest return for your money. Residential properties are usually a preferred choice as they seem safer and in control however, investing in commercial real estate offer much higher earning potential and better returns as compared to residential ones.

  1. High prospective for Income – Numbers don’t lie. The average annual return of commercial properties is somewhere between 6-12% of purchase price as compared to the average annual return from single family home which is approximately 1-5%.
  2. Being in the Public Eye – By investing in commercial real estate you create a space for yourself where you can always stay among the masses and that’s where all the business happens, don’t let that scare you it’s actually a good thing. Business owners are always trying to attract customers to their buildings and that makes up for a higher return on your investment.
  3. Hassle Free Ownership – When you are the property owner of a small home, your work never ends. If a tenant needs home maintenance done or loses something like the house key, you have to work with them to get the issue fixed no matter what time it is. If you don’t, you may look like a bad owner. However, when you invest in a business, you do not have any of the same worries or duties you would with the former. When they are done for the day, so are you.
  4. Fair Pricing – Homes sales are usually driven by emotions as people tend to pay more for properties near schools, parks etc. whereas residences which are farther gets lower returns but, investing in a commercial property makes it fairer for both buyers and seller as they are usually driven by market norm and pricing prevalent in the area.
  5. Better Future Prospects – Investing in commercial real estate comes with an added advantage of owning a business at a prominent location if you ever want to have one. Moreover, you can plan on to leave a stable business for your kids if they are not very keen on studies or for working from 9-5 in a office.

The Index in Jagatpura offers affordable commercial shops, offices and showrooms at one of the most prime locations in Jaipur. Starting from Rs. 17 Lakh onward.

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