Why Retail Space in commercial property a Profitable Investment Option?

Retail Space in commercial property is growing as a very successful form of investment in India. Not only the Resident Indians but the NRIs are also investing their money in retail properties in top commercial locations of India.

Let us study more about retail space commercial properties in India and why they are so valuable.

What is Retail Space in Real Estate?

Retail Space in real estate means the shops. When you invest in a retail space, you are buying a shop in a commercial project or a mixed-use real estate project. You will pay only for the said unit, just like an office space.

While investing in retail space, you need to study in many portions, the most important of which are as follows:

   — The centrality of the location

   — The layout of the retail shop

   — Neighborhood dynamics

   — The catchment area of the property

   — Rental trends in that location

   — Commercial trends in that location

   — Laws related to retail spaces prevailing in the location

What makes retail space in commercial property a valuable investment stake?

As compared to residential projects, units of commercial give higher returns on investment and they are also an excellent opportunity for making a regular passive income.

With commercial property options, retail space properties come out as the showstopper. Given below are a few causes why retail space is favored by enthusiastic investors:

1. High Rental value

The rental income from retail space is the highest as compared to any other type of commercial property. This is because of the high interest of such properties. If you own retail property in a prime location, you will make great money in the form of rental income.

Furthermore, retail holders usually agree on including the cost of property maintenance and sometimes the taxes as well, thus putting some more load off of your chest.

2. Exponential growth and appreciation-

The appreciation in the value of retail space is much higher than office spaces or industrial space. Again the high demand in the market leads to such advantages.

While a residential unit would give you a 3-5% return on investment, the ROI on retail realty may go up to 10% of its investment value. This is a great figure to bank on.

3. Longer Lease agreement-

Retail Shop spaces generally have a longer lease agreement than residential properties and office spaces. So, with retail space, you can enjoy your rentals without having to renew your lease every 3 years.

4. Minimum Possibilities of Vacant Property

If you purchase office space and market it, you would get multiple inquiries from different types of businesses. But it is difficult to find the right renters. Even if you do, they tend to move quickly.

On the other hand, retail space properties are easier to put on rent and they also attract long-term lessee, especially if your property holds an excellent location.

Therefore, we can see that retail space in Noida can be very profitable if invested sensibly.

At the same time, retail space in commercial property investment is quite a risky one. You will have to see the economic conditions in the country and its trends to find out how the future of this investment is going to be. Look for quality retail spaces by reputed developers, rather in a township project or a mixed-use project. These happen to be more reliable options to standalone retail stores.