The graph of the real estate has been witnessing great progress in Pune, one of the most liveable cities of the country. Residential properties have developed a lot as the city accommodates a cosmopolitan population. The market for commercial properties in the city has grown as well. This has boosted the trend of investments in commercial property and top real estate agents in Pune have contributed in the same.
Based on a national survey by property consultants Colliers International, from 2014, 63% of the investors interviewed by them opted to invest in commercial spaces. Also, as per the survey, from 2014-2018, around 7,000 crores has been invested in office assets and Pune is no exception. IT companies with wide scope for business expansion along with other investors, now have turned their minds to buy commercial property in Pune. The dilemma in choosing one out of residential and commercial still troubles some of the investors. Let us understand how buying a commercial property can be great for your future:
Higher rental yields
One of the most convincing factors to buy a commercial property in Pune is the higher yield or higher returns from the investment. The average rental yield of a commercial property is expected to be above 10% for shops, office spaces etc. Also, the current trend of rents in an area can be a good parameter to evaluate if the investor is putting his money in the right property at the right location and at the right price or not. The investor can also take help of renowned and top real estate agents in Pune, to make a final evaluation.
A premium or great location would bear a rental yield of approximately 13-15%. Arvind Nandan, Executive Director- Research, Knight Frank, says that broad elements to be considered while selecting a property for investment should be quality of construction, location, age of property and its usage. The vacancy risk for commercial property is much lower than the residential property; and commercial properties are leased for longer tenures.
Consistent source of income & longer tenures
Setting up a business or store is not a month’s task. It can take up years. Often, the lease agreements of commercial properties are for a minimum of 5 years of duration. To buy commercial property in Pune and then lending it off on lease to tenants may mark a continuous flow of income for the investor for a longer period of time. In fact, the lease agreement holds a clause which increases annually thus, assuring consistent and increasing returns on investment.
Good tenants lead to better returns
Tenants for commercial properties are corporates, banks, business or retail chains. An investor can easily reach them through top real estate agents in Pune. Most preferred option for leasing commercial property in Pune is corporates. Their work culture and minimum hassles make it much easier for the investors.
Also, a quality tenant or a good commercial name attracts more such tenants in the vicinity. If a commercial property is lent to a renowned business or corporate name, it will definitely bring more of such names and good tenants together; and great rental yields in future.
Furniture is no concern!
Those who invest or buy commercial property in Pune need not bother about the furnishing cost, as the corporate or business houses furnish the property as per their choice or theme. Since branding is very crucial for commercial spaces, most tenants will be doing the furnishing part on their own without troubling the investor.
Investing in a commercial property in Pune will lead to profits. However, this needs to be done in a planned way and yes, if done right, you will stay profitable for a lifetime.
At Brick Folio, we understand the tremendous promise of commercial real estate in Pune. We consistently strive to make real estate transactions profitable for our clients.
To know more about us and our offerings, reach out to us today!