Office, Co-Working Or Business Center, Which Is Better?

Many entrepreneurs and freelancers when they start a new business often work from home to save costs, but there comes a time when they need a comfortable and well-equipped workspace to carry out their activity or they may need a meeting place on occasion. At that time, they must choose: office, co-working or business center.

Each way of working has its advantages and disadvantages, so we are going to analyze them so that you can decide what is best for your business.

An individual or shared office

This is one of the most classic options, you simply rent an office for your business or you share an office renting an office with other professionals. They are usually offices with independent rooms that do not facilitate collaboration but individual work.

An individual office for you can only be a bit expensive option, unless you choose something further from the center. An office in a shared office can be a good option to work in a more central area.

Business centers

Business centers are used for two things: to have companies domiciled and to rent professional offices or other spaces for companies. Business center in Delhi usually have additional services such as the reception and attention of telephone calls, rooms for meetings and events, etc.

business Centre in Delhi

The advantage over renting an individual office is that with the price we pay, we also cover the cost of electricity, internet, furniture, office cleaning, etc.

The disadvantage is that they continue to be spaces, like the individual offices that do not foster the relationship between companies, since they work in separate spaces, making it very difficult for synergies to arise or for collaborations to be established.

Co-working

It is perhaps the most flexible option for an entrepreneur who is starting a business since they usually offer several options: renting fixed or few hours a month jobs or attending events (without the need to rent a job).

These are open spaces that foster the relationship between entrepreneurs and, in addition, the co-working centers themselves usually schedule courses and various activities so that the entrepreneurs get to know each other and can collaborate professionally.

They usually offer various complementary services such as: internet, organization of events and courses, meeting rooms, etc. Sometimes they are very original spaces and they are usually in central places of the big cities, even in some cases they have other centers abroad that we can go to if we travel for work.

Co-working centers are a good idea for entrepreneurs who have just started, they work from home, but sometimes they need a space in which to focus or receive a client. Choosing one of the three previous options depends a lot on the type of activity you carry out, perhaps a more consolidated activity is better suited to ab office space in Connaught Place for that company.

While if it is a more creative activity, the relationship with other professionals who carry out activities complementary in a co-working can be beneficial.

Where Is It More Profitable To Invest: In Residential Or Commercial Real Estate?

The crisis of COVID-19 significantly affected both the business and the real estate market. And the main question facing “micro” and “middle” investors is which is more profitable: commercial or residential real estate. The answer to it will not be unambiguous.

Residential real estate is clearly segmented: primary and secondary markets, apartments, luxury apartments, houses and cottages, economy, business and premium classes. Segmented and commercial real estate:

  • Offices
  • Retail
  • Warehouses
  • Hotels
  • Narrow-profile buildings: cafes, restaurants, banks, etc.

Therefore, to decide whether to buy commercial real estate, you need to decide: will it be an investment in your own business or a rental income?

Business premises

It is logical that the person who acquires the premises for the business is able to calculate their income and expenses. But in practice, many representatives of small businesses (especially in the retail sector) do not always calculate whether their store will make a profit if the company has to pay rent + utility bills and other expenses.

What does this mean? The store pays off. But investments in the room do not pay off. Is such an investment profitable? No, although outwardly everything looks quite acceptable. This is “business for business.”

The money spent on the purchase of their business center in Delhi could bring much more profit if put into circulation.

The second problem that the owner will face is the inability to assess the potential of the area. He does not know (or does not take into account) which objects will be erected here in the next 3-5 years.

Meanwhile, the opening of a large hypermarket in the neighborhood, the transfer of a bus stop, the closure of the metro exit can “kill” your own business.

Premises as rental income

In this case, the investor expects to receive monthly income from the rented property in Delhi, while the room remains its asset. For a long time, residential apartments remained the most popular type of such investments, however today their payback period has increased significantly, and profitability has fallen.

Commercial real estate wins in this regard: its payback period is 7-10 years against 20 for apartments. But both options have their pros and cons.

Apartments

Entrance ticket to this market is lower than in the commercial segment. Traditionally, apartments are bought for children, and while children grow, rents are a good help for the family budget.

A similar option is also chosen by people who want to ensure a quiet retirement life- they rent out their property and live on rent.

The advantages also include the fact that professional experience for renting an apartment is not necessary (which cannot be said about the store or office). Moreover, companies that professionally manage residential real estate operate on the market today- if necessary, they can be entrusted with the management of the apartment.

The third advantage is liquidity. An apartment or apartments is easier to sell. How easier it is to purchase housing at the construction stage, which means to save on the purchase. The fourth advantage is the ability to rent housing.

Is it profitable to buy commercial property?

In terms of payback – yes, of course. With one caveat: if this property is liquid. The trend of the last 20 years has been the purchase of apartments (or premises) located on the first floors of houses under construction.