A year back, the residential property market saw a slowdown that sent the property dealers in a tizzy. But the surge in buying commercial real estate like office property has reaffirmed the belief that the real estate is still a bankable option for a long-term investment. Thanks to the participation of e-commerce startups, there is a huge demand for office space in delhi especially after 2014.
From the investor’s perspective, choosing to rent IT office in Noida and NCR is extremely fruitful since it becomes a regular source of income when compared to residential property. IT office space in India can hand you a profit of 8-10% annual profit whereas the profit percentage for residential property is a mere 2.3%. Lucrative as it sounds, investors should be wary of certain factors before inking a deal. These are:
1. Risks– While the idea to invest in office space in noida can be an extremely profitable business proposition, there are few risks that depend upon the time you choose to invest. An investment could be potentially risky when a property is under construction or when a constructed property is not made available to the public information. Therefore, it is better to invest in an office space in India which is fully constructed. Another risk is that of your office property remaining vacant after a tenant’s lease has expired.
2. Dodgy schemes– With the emergence of many unscrupulous real estate agents in Delhi, there have been a lot of falsified schemes that have investors have fallen prey to. This leads to two big risks. First, due to these schemes, the developer may charge a higher amount than the current rate of the market. As a result, you end up paying a huge amount of money upfront to get an IT office space in Gurgaon. The second big risk is that the property that you bought may not find a tenant after the constriction of the property is completed. This may give you much lower return than expected. Worse, the developer could default ir delay and the promise of high return may not be fulfiled. These schemes also have the element of soft launch i.e. investment on a freshly started commercial property may not get the approval by the concerned authorities and it can get stalled in the worst case scenario.
3. Due diligence– The investor must have complete clarity of thought as to where they want an office space in Delhi. It is very important to strategize your purchase with regard to choosing the commercial property that can thrive as a profitable investment. At the same time, it is also expected by the interested buyers that they regularly update themselves with the time period by which the property is ready for occupation.
Transport and communication are one of the key factors that determine the valuation of office space in dlf cyber city-gurgaon and access to metro stations should be the first priority while choosing an office space. It must also be kept in mind that a big chunk of commercial property’s demand comes from the sectors like IT ITES, banking and financial services.