19/05/2020
COMMERCIAL
Commercial real estate covers a diverse group of structure types and uses, as well as vacant land. Learn specifics about some of the most common ones here.
These categories are discussing the sale of "real property", the land and/or buildings. Though business owners frequently sell their business entity together with the real estate, the valuation of the business enterprise itself is not treated in this discussion.
They are two types of Commercial Estate :
High Street & Mall Area
High Street, or the High Street, is a metonym for the generic name (and frequently the official name) of the primary business street of towns or cities, especially in the India. It is usually a focal point for shops and retailers in city centres, and is most often used in reference to retailing. However in recent times, the phrase "high street banks" has been widely used to refer to the retail banking sector in the India.
Office Space
Office and retail space is a more interesting option for bigger investors. Here, an investor buys an office space and lets it out to a company & re-earns regular rental income as well as simultaneously carries the benefits of price appreciation too. Total income can range between 6% to 12% on investment, and there is room for capital gains too. Again, investors are able to leverage much more efficiently by using Lease Rental Discounting (LRD).
In another model, an investor can buy a vacant or under-construction office space, invariably available at a lower price than a leased out asset office. the intention is to earn a higher rental income and higher yield on his investment on office space. He has to take a call on increase in prices and demand of office space. this results in higher office space rental. However, the investor undertakes the responsibility and risk of leasing it out. Eventually, basics of investing prevails-higher the risk, higher the return in office space.
Feel Free to Contact us for Investments:
Bajaj Estates
A unit from Relocatersindia
H.O. Rajouri Garden, New Delhi
9810633155
