7 Key Benefits of Investment in Commercial Real Estate

1. Abacus 7 Key Benefits of Investment in Commercial Real Estate

2. Introduction • The real estate scenario of India has been witnessing major progress of late • It can be said for both commercial as well as residential real estate properties • With more demand in the market, investment opportunities have seen considerable growth as well • Investing in commercial real estate is popular among investors • Commercial property in New Townis among the top choices among investors because for many reasons.

3. 1. Steady Cash flow • You invest to get returns on your money • Commercial real estate is quick to show results, in comparison to stocks, shares or other bonds • Commercial real estate ensures a steady flow of income because of the high influx of rental income • By leasing your property under contracts, an investor can ensure a regular income • Adding amenities to a commercial property can significantly skyrocket the returns on a commercial property too.

4. 2. Less Competitors • With the real estate sector promising handsome returns, the field is saturated with investors • Consequently, there is intense competition, especially in the residential real estate front • On the other hand, in commercial real estate investments, you will have less competition because of their larger structures • The more precise your niche, the less competition you'll face as an investor and the more clients you'll attract.

5. 3. Safe During Inflation • One approach to protect your money against inflation is to invest in commercial real estate • There is already plenty of demand and supply from both sides: • Buyers who can afford higher rents and deposit rates • Sellers who want to get rid of their properties at any cost • The more you invest in this asset class, the less likely prices will fall when times get tough.

6. 4. Increased Rate of Appreciation • The investment market is considered volatile and faces quite a few ups and downs • One of the main advantages that commercial properties enjoy is the appreciation value it garners with time • Commercial properties can always be revamped by adding more amenities • Additionally, if you have acquired a prime location in which renters will thrive, the chances of appreciation grow further

7. 5. Diversified Investor Portfolio • There have been instances when people have put all their money on particular stocks and have suffered losses • Learning from the past, it is now customary for investors in the real estate sector to not put all their funds in one investable commodity • Commercial real estate offers a profitable scope to spread the investments, as well as make quite a bit of money • Moreover, investors can also use the profit earned in CRE, to further diversify their investing portfolio.

8. 6. Less Risks Associated • Commercial real estate is defined as property with a naturally high value • A commercial property is a hard asset since both the land and the structure have worth • Investing in a property meant for commercial purposes, in an appropriate location, will safeguard investors from losing money even while their properties are vacant • Commercial real estate, be it retail or office spaces in New Town, is the safest and most secure sort of investment.

9. 7. Substantial Equity • The amount of value that an investor has built up through time is referred to as equity • Commercial properties benefit from quick and smooth equity, which increases returns in direct proportion to the property's worth • Commercial real estate allows investors to swiftly accumulate equity, with all credit to the consistent and relatively high returns that commercial assets provide.

10. Thank You