Benefits of commercial properties in Hyderabad

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Commercial property is a highly stable asset in current time’s real estate landscape. With the economy set to develop in the near future, there will be increasing demand for commercial properties in Hyderabad.  With the rise of Hyderabad as an ideal destination for multinational software companies and global pharmaceutical majors, R&D centres, and global educational institutions destination, commercial real estate projects is a safe bet for investors eying for attractive returns. The presence of the thriving ITES sector adds value to the commercial spaces in Hyderabad.

For those who intend to pump money into real estate, commercial property is a sound option in preference to residential property. Across the globe, many big investment groups have invested significantly in commercial properties.

What is a Good ROI on Commercial Real Estate?

In India, in particular, in Hyderabad, the returns in commercial real estate are one of the best in the world. While returns from residential homes are between 3-4 percent, it is nearly 8 percent e case of commercial properties. In some locations, the yields could touch 10 percent.

Owning a commercial property has scores of benefits. If you are eying for reasonable rental income to support your income and avail wealth tax exemption, then commercial real estate could be the ideal benefit for you. Benefits accruing out of commercial properties will be reliable and steady annual returns when compared to other investments.

To gain benefits out of the commercial property for sale in Hyderabad, it is essential that the commercial property offers good amenities like wide parking space, fire safety measures, back-up power supply for lifts, and good quality wiring in offices for running computers and so on.

commercial properties in hyderabad

For commercial property, it is all the more essential to ensure that it does not stay vacant for a long period.

Residential Properties Vs  Commercial Properties in Hyderabad

Rental profits arising out of Commercial Real Estate are always much higher when compared to residential properties. Although in residential property, rent is calculated on the basis of per square foot, the rental return from commercial property is always significant. Higher rental property returns mean a higher monthly income.

Commercial real estate property enables broaden an investor’s portfolio in different ways such as:

Earning Potential:  A right location plays its part in signifying the value of commercial property and you can gain an enhanced annual return from commercial properties.

Cash Flow Stability: Dissimilar to residential leases, commercial real estate leases run for long periods. This enables steady cash flows to the investors for long periods.

Tenant interactions are foreseeable in commercial properties: Commercial property landlord link is between two business establishments than two individuals. This means the interface is highly professional.

Commercial homes will expand risks: If commercial property is leased to various tenants, then there is a less probability of risk.

REIT will turn the commercial property into professional: With the proposed Real Estate Investment Trust, commercial real estate is going to be managed by a Professional Asset Management Company, as in the case of mutual funds. REITs will offer depth, liquidity, as well as transparency in the market. With this policy still in preliminary stages, REIT’s guiding principles once refined will give the necessary impetus to commercial space.

Investing in a home in which a REIT is already a part is an excellent idea since the due diligence will be taken up by the fund and you can be certain of a good quality property.

Reduced maintenance expenditure: Whilst in residential properties, the expenditure on maintenance of the premises would require a high shell out to the owner, whereas in the commercial space, the tenants would take up on their own as it requires them to keep the location neat. Retail spaces would require enhanced maintenance if they are to add footfalls over time.

Depreciation advantages: Investing in commercial real estate property gives a higher tax shelter by way of depreciation of the property and improvements depending on the built-up of the asset.

A top hedge against Inflation: Commercial property offers a better hedge against inflation when compared to residential property. This could come by way of escalations that come in together with rentals while leases are signed. There is a likelihood of an extended appreciation in rent while for a replacement tenant after a tenant has quit the space.

Higher-income potential

Compared to other investment options, the annual returns are much higher for commercial properties. In Hyderabad city, the returns gained from suburban office spaces tend to be on the higher side compared to the commercial housing properties.

Excellent appreciation value is another advantage of investing in commercial properties. Unlike in stock market investments, which is limited to buying and selling, commercial properties give you the liberty of investing in the improvement of your properties so that you can increase the value of it. If you own a commercial real estate property you can keep modernising your property to meet the contemporary needs, be it home or office. An added advantage is that along with the local developments, the rent/value of your property keeps increasing. That’s the beauty of owning a commercial real estate property.

If you are looking for good commercial properties for sale in Hyderabad? Click here.

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