Commercial property investment has been one of the trendiest alternative investments in recent years. Since India started urbanising, the real estate market’s value and development potential have increased. It has drawn a crowd interested in alternative investing. Is real estate a good investment?
This article answers this and other questions concerning investing in commercial real estate. Stay tuned!
Why Are Investors Buying Commercial Property?
Commercial real estate has withstood huge economic blows. The pandemic didn’t significantly influence this industry. Commercial real estate is stable and offers strong long-term profits.
Also, demand for real estate keeps it running through hard times. Urban areas or economic centres are attracting more people. Commercial real estate developments are popular in New Delhi, Mumbai, Pune, Hyderabad, Bangalore, etc. Do stats prove it?
Yes, the real estate industry’s market value reached $200 billion in 2021. The real estate business is predicted to be worth $1 trillion by 2030. June 2022 had 3.8 YoY industry growth. This shows the industry’s direction.
This is why you should put your money into commercial real estate.
Highly Profitable
Surprisingly, real estate investments usually outpace inflation, which means you can make a good profit from them. In comparison to other kinds of investments, like direct stocks, etc., the returns on commercial real estate investments are much higher. Investing in commercial real estate can grant you a high return without putting you at risk of losing a lot of money.
Also, investing in commercial real estate is much easier than investing in other things. The legal processes, such as stamp duties and registrations, are also easy to understand. So, investing in real estate makes it much less likely that you will fall for a scam or fraud.
Alternative Investments That Are Safe and Sound
Putting money in real estate is a lot safer than investing in cryptos, the stock market, gold and other alternative investments. On the Indian market, the price of gold is known for being hard to predict. Both of these alternative investments carry a high level of risk because their prices can drop at any time, just like crypto and the stock market.
Because of this, investing in commercial real estate is one of the best ways to put your money to good use.
High Chance of Growth
Recently, the world’s attention has moved from China to India. This makes the commercial real estate industry in India a good place to invest right now. As more and more companies move to India, it is clear that there will be a huge rise in demand for commercial floor space in the real estate market in the coming years. Also, thanks to Section 54F of the Income Tax Act, investors can get a good amount of money back from their alternative investments.
Tax-Exempt
You can save money on taxes if you use home loans to buy commercial real estate. If you are a first-time buyer, you could save up to 1.5 lakh just on the principal amount through Section 80C and up to 2 lakh on the interest through Section 24. These tax breaks can help you lower the costs of your investments and make them more affordable.
Takeaway
The Indian market is becoming more and more interested in the commercial real estate business.
No longer do you have to spend a lot of money to invest in commercial property Bangalore. Fractional ownership is a better and simple way to invest because it lets you buy a piece of the real value of the asset.
India’s commercial real estate business is doing well, and if you join it, you might make a lot of money in the future. So, ride this wave to protect your future, live well and leave a lasting gift for your family and friends.
With the help of a new real estate investment platform in Bangalore, like Yield Asset, it’s easy to invest in commercial real estate. You can build your wealth by putting money into a wide range of interesting real estate. You can also invest in other things with fractional ownership, which makes it even more convenient.
