Considering the existing trends in the big cities, commercial investment is b better and more attractive. In many ways commercial investment outperforms the residential investment.
There are many who are keen to invest in the real estate sector. Among those who invest in real estate sector, some are fond of residential segment while others look at commercial segment. Here we look at how or why commercial investment is more attractive.
There is a normal tendency in almost all top cities of India. There is comparatively lower demand for resale properties in many of these cities. The demand is all the more weak in housing segment.
Lack of modern amenities, fear of a building collapse, etc. are some of the factors which drive the buyers’ demand away from resale properties. However they are not so afraid of acquiring any old commercial property.
This may be because they are not living in the commercial properties. In fact investors seldom live in any of the properties in which they invest. They are also concerned about the rental appreciation. In top cities rental appreciation for commercial properties is higher than that of residential properties.
So those who plan to have investment for longer periods, commercial investment would be better. Their investment will bring them regular income in the form of rentals. All the more they can be sure of better value appreciation for their properties as well.
As the supply of commercial properties is weaker than the demand, there will be more price appreciation. Whatsoever the commercial importance of the cities will never be affected. There will be more demand for commercial properties in the future.
On the other side the people may be ready to live outside the city or in the outskirts. However it is not possible with doing business. Those who do business in the city centers are supposed to earn better profits than others. So there will be always higher demand for commercial property.
So in short, you can have commercial investment as your choice because the future will be brighter for commerce in the top cities.
