Is Investing in Commercial Real Estate The Need of The Hour?

Is Investing in Commercial Real Estate The Need of The Hour?

If you want to grow your wealth and beat the incessant growing inflation, it is inevitable to make investments. And what could be a better investment option than immovable property? Indeed, none! That is why you can find almost everywhere house on sale in Mohali.

But, when it comes to commercial properties, buyers are not sure whether it is the right time to invest in commercial real estate or not. For those who have such apprehensions, here are some points that will let them understand why to invest now in business assets.

Statistics Support Investment in Commercial Assets

Do you know that office-segment real estate India has “attracted investments worth $943 million” during the first quarter of 2022?

According to a report published in the Economic Times, real-estate investments are on a surge and almost 41% rise on a sequential basis. From these numbers, it is crystal clear that investment in commercial buildings is becoming quite popular. So, going against the trend will only lead you to losses.

Opening of New Shopping Centres

Coronavirus affected not only our daily life in the past two years but created less mobility for customers in popular shopping places. You will be surprised to know that during Covid, even the mall in Kharar, Punjab, was deserted. It appeared as if customers were never going to return to offline shopping. But, post-pandemic, the scenario has changed drastically.

Today, more and more buyers are choosing offline platforms including the new shopping center near Chandigarh. This sea-change has enhanced the investment prospects of commercial real estate. You can rope in money in these profitable properties to earn good returns.

Post-Pandemic Scenario

Covid-19 led to making the work-from-home culture a new norm. It adversely affected many commercial building owners as many companies didn’t renew their office leases, which added to their woes. However, with things returning to normal, many companies in Tricity (including Kharar and other Chandigarh adjacent areas) are back to work from office culture. To get back to the work, and accelerate their businesses, many offices are looking for commercial buildings for lease. It is one of the primary reasons why such property for sale in Mohali is trending.

Easy to Make Investment Option for NRIs

Many Non-Residential Indians (NRIs) are willing to invest back in the country for mutual benefit. Since there is no restriction in making investments on commercial properties, you can invest in this and enjoy regular income from here.

Note- NRIs or PIO (Persons of Indian Origin) can buy any property in India except agricultural or plantation land. In the case of NRIs, these can only be gifted or inherited.

Longer Lock-in-Period for Tenants

The amazing thing about commercial real estate assets is that it has a longer lock-in period in comparison to residential real estate properties in Kharar, Mohali, Chandigarh, etc. It protects your income as a landlord of business property. It allows you to get passive income for many years at a stretch, giving you a favorable return on investment in immovable assets. Further, it keeps you free from personal interactions with your tenants daily, which is frequent in residential properties on rent.

Offers Tremendous Tax-Benefits

If you are looking for tax benefits, investing in a business asset will do you no harm. Rather, it will turn out to be a boon for you. In India, the owners of commercial real estate can claim a massive tax deduction. Under circumstances where you fail to get your commercial property on rent, you do not have to worry much about paying taxes. The Punjab government has reduced the taxes considerably for non-rented commercial real estate.

Stability in Cash Flow

Regular income is an essential criterion for any investment. That is why many people are ready to buy a house in Tricity and rent it out. But in residential properties, the stability of cash flow is not very high. The chances of default are higher than in commercial buildings. In the latter, you can lease a building for 3 to 5 years or sometimes even more. In a way, it assures you running income for a longer period. So, you get to have a stable income with commercial assets.

Final Thoughts

At a time when things are changing rapidly, and income from other financial investments such as stocks and bitcoins also seem to be making a loss, commercial properties, on the contrary, stand as a promising option. So, if you are willing to invest in apartments in Mohali for rental benefit then opt for commercial assets instead. It can offer you far better returns on your investment in a short period.

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