Earn on a lease: We Invest in The Office

Renting an office is quite a lucrative and popular business, especially in Delhi. Of course, rental rates of retail space are higher, but the cost per square meter of such facilities is much higher than the cost of administrative area. One of the reasons why investors prefer office space is the limited funds for initial investment. However, in the field of commercial real estate, the cost of admission does not always affect the effectiveness of investment.

As in the case of shops, the profitability of the office depends on the liquidity of the premises. It consists of many factors: the location of the facility, its accessibility by public transport and cars, the possibility of parking arrangements, the condition of the building and others. Choosing an object for investment, it is important to soberly assess the prospects for subsequent resale or the demand of tenants. At the same time, one should not pursue a low price, the payback depends on the totality of all the characteristics of the project, as well as the competitive environment.

Currently, the popularity of not gaining a large area of ​​office category B. The need to reduce costs forces tenants to move from central areas closer to the Moscow Ring Road.

Office for all.

Not only large companies need premises, but small businesses also affect demand in the office space in jasola segment. In response to the need for cheap areas, a proposal was formed – small rooms, mini-offices, coworking centers. Rent business is transformed into something more and is oriented towards the mass consumer. Small areas and low prices attract freelancers, beginning entrepreneurs, IT workers.

A separate story of renting small areas is the adaptation of apartments to offices. It should be noted that renting an apartment for commercial purposes is illegal. Russian legislation determines the appointment of living quarters for living, organizing commercial activities in the apartment, the owners violate the law. However, this phenomenon is widely spread due to the fact that it is beneficial for both parties: the lessor gets up to 30% over the income, and the tenant finds a cheap premises by the standards of the market.

Investments in construction.

Shared construction is one of the options for investment in the office space in Gurgaon sector. The first thing investors think about, touching on this area are possible risks. The most terrible of them is the termination of construction. The risk of not paying back the investment due to lack of price increases and demand applies to all types of commercial real estate investments.

To avoid these risks, it is necessary to take a careful look at the choice of the developer, carefully check all the documentation for the facility, and make sure of the financial stability of the company and the history of the implemented projects. The behavior of the developer with a decrease in buying activity can show the true state of affairs. The desire of the company to sell the area faster and cheaper probably means a lack of own funds and serious financial partners.

However, possible risks cannot be regarded as indicators of the failure of the project. The investor can vary the terms of the transaction in order to secure his investments. For example, the parties agree in advance that the developer undertakes to search for tenants and thus guarantees the return on the property.