Commercial Properties in India: Presenting Decent Investment Opportunity

Commercial Properties in India: Presenting Decent Investment Opportunity

If you have gone through the latest survey by global realty consultant DTZ, you must have learnt that commercial properties in Mumbai and New Delhi have been considered amongst the top ten most expensive Asian office locations. However many places in India have proved to be very lucrative for many multinationals and industrialists who are looking for cost effective commercial properties in India.

Indian real estate market is developing extensively and it may not be wrong to say that this development is due to the upcoming commercial projects in the country. Commercial properties in India are witnessing a very fast expansion and all this is due to the fact that Indian consumer market is expanding and lot of foreign investors are migrating to the Indian market. This countrywide expansion is fetching large number of investments from national and international realty players. Real estate values in commercial sector are experiencing high annual appreciation of approximately 8 to 11 percent.

The most popular and demanding categories among the commercial properties in India are the shopping malls, multiplexes, IT spaces and branded retail outlets. Commercial properties not only have high demand in the country but also fetch huge profit. And all the major developers like Parsvnath, DLF, Omaxe, Eldeco, MGF, etc are enjoying profits from the commercial projects. Even as an individual you can enjoy profit and high annual returns from buying and selling commercial properties. Apart from selling these commercial properties, leasing or renting them to some MNC is a good option that acts as a continuous source of additional income.

Commercial real estate is rapidly developing in the cities like Gurgaon, Bhiwadi, Manesar, Faridabad, Noida, Chennai, Mysore, Pune, and Kolkata and the other developing tier II cities. Most of the IT & ITES companies are setting their organization to the above mentioned upcoming cities because of the availability of space and affordability.

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More commercial real estate is vacant. High rents, cam charges, tax are out of line with income and profits. There has been an increasing number of businesses for sale. We are seeing many stores close. Retail stores have been hit hard and we are now seeing a growing amount of service businesses shut their doors. Commercial defaults are seen in the crystal ball.

Help answer the question about commercial property lease

How to find commercial property for lease?
How can I find a place for my business? I can't find anything online or in the paper. Do I have to drive around looking for "for lease" signs in my target area?

About Author

Ankita Tyagi is expert content writer on commercial properties in India. For more details on plots in gurgaon and plots in noida visit:- NextGenProperty.co.in

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9 Responses to “Commercial Properties in India: Presenting Decent Investment Opportunity”

  1. Decrot says:

    Post a free ad. There's lots of traffic here:

    http://www.craigslist.org

  2. Ayisha A says:

    You need good credit to lease anything. If you are a huge credit risk, no one is going to lease property to you. Maybe you should consider going into business with a friend that has better credit than you do.

  3. Miron says:

    You would need to start with the local planners (usually city or county assessor's office or planning dept/board) to find out if the propperty is zoned for comercial use or not. Something such as assisted living facility depending on the number of units and degree of assistance MAY still be placed in a residential area but check the zoning rules before committing to anything.

    After that, check with local area facilities of the same sort and see if the company they are operated by would be interested and you might be able to check with a property developer too.

  4. AliciaVR6 says:

    http://www.loopnet.com lets you pay for a 24 hour unrestricted access. You will find a place.

    http://www.costar.com is excellent. Costs money.

    Or contact any realty broker. She can help you find a place..

  5. Jane30584 says:

    You can do it yourself, but I would not recommend it. You will be responsible to make sure everything you do is legal, and the cost of insurance to cover your butt is a lot more then you would pay any RE manager.

    I manage my own properties, but residential is a lot less complicated then commercial real estate law.

  6. vogel5 says:

    commercial leases can be complex and one sided against the tenant. Have a commercial agent and a real estate attorney review all documents and fully explain all the if's and's but's and or's.

    I have seen some leases that the property owner wants to take most of your profits and more or less become your silent partner just for the privilege of renting a space in his property and you wind up with nothing in the end.

    Be careful

  7. BuzzBee says:

    You need to state your question more clearly. Are you asking if the rent you currently pay would be considered part of the income of the buisiness? The answer would be yes. You have asked the question in a way that would be hard to understand.

  8. mitchent86 says:

    To expand on the previous answer, a triple net lease means that you pay rent plus your proportionate share of the costs of maintaining the shopping center (or building), the real estate taxes and the landlord's insurance. So if you are renting 33% of the building you are paying rent plus 33% of the landlord's maintenance costs, 33% of the real estate taxes and 33% of the landlord's insurance bill. Maintenance costs usually include things like electricity, snow removal, cleaning, etc.

  9. peaceofmind says:

    The landlord is not in breach of his contract with you. When commercial properties get sold, the contracts will transfer to the new owner. All of the terms and agreements will remain the same, you just pay to the new owner.

    To be honest, if it wasnt for your contract and those of the other tenants, then maybe the property wouldnt have sold. Why you ask? well, investors of commercial properties want to make sure that they will be receiving income from their investment. No income (ie – no tenants), then they would probably reconsider the price or not buy at all. This all relates to the income capitalization rate for commercial properties.

    so basically, I would guess that the new owner is glad that your unit is under a 3 year contract. I wouldnt be too paranoid or worried.

    Good luck.

    UPDATE: so the new landlord is trying to push you out huh? Well, you now have to check whats in your lease, as that will determine what rights you have and what rights the landlord has. Typically, lease contracts run with the building, not the owner. You were given the space for 3 years, and that cant be taken away without proper cause.

    Check for a clause called "successors". ususally there is something that will state that your contract is binding on future owners or anyone that has a future interest in the property.

    by the way, notice by phone or conversation is not considered offical notice. Usually they have to put it in writing. So Im afraid that you'll just have to wait and see what this new landlords plans are and move from there accordingly.

    Good luck.

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