Commercial investment in a good location can give users stable and secured rental returns from a corporate tenant as well as property appreciation. As an overview, commercial investment is better than residential, according to Amit Grover of DLF Offices Business. He said “Even if you have to pay higher for a good location and good development today, in the long run, it will pay back. Look for properties by good developers if investing in under-construction properties.”
Amit Grover, National Director, DLF Offices Business addressed over 40 queries on Making most out of Commercial Property Investment in Metros on Gurutalk chat forum of MagicBricks.com on May 22. Prospective buyers posed doubts related to areas that offer good commercial property options, commercial versus residential investment, best areas for commercial property investments in the next 5-10 year horizon, ideal return expected etc.
Grover advices property buyers to invest either in the under-construction stage or in the close to completion stage. “Do ask questions like who is going to maintain, has the developer taken all licenses, approvals etc. Title due diligence is important before the purchase or agreement to sell. Suburbs of metros such as Gurgaon, Noida, Navi Mumbai, Outer Ring road (ORR) Bangalore are recommended,” said Grover.
When a consumer asked what would be a better investment in the current environment – buying a residential property and giving it on rent or buying a commercial property and looking for tenants, Grover replied, “Commercial investment in a good location can give you stable and secured rental returns from a corporate tenant and property appreciation. It’s better than residential or better is to have a portfolio of residential and commercial if you can have more than one investment.”
Talking about the construction trend in Chennai, particularly commercial and hospitality buildings as compared to last year, Grover pointed out that for a retail or commercial investor, choice of a good building and efficient floor layout is important. “Even if you have to pay higher for a good location in the long run, it will pay back. Look for properties by good developers just in the stage of completion in the next 3-4 months,” he said.
According to Grover, other locations where commercial investment would fetch good returns include office space in main Sectors in Noida, close to Sector 50 and metro points. For malls in Gurgaon, one should invest in a space of minimum 3,000-5,000 sq ft. In Bangalore, he advices commercial investment in Bannerghatta Road, Indira Nagar or ORR, and in Pune, localities like Viman Nagar and Kalyani Nagar would prove fruitful. Meanwhile in Mumbai, Goregaon, Thane and Navi Mumbai, areas closer to metro points are advisable and Ambattur and Guindy are ideal commercial choices in Chennai.