Factors to consider when investing for commercial real estate

1. Factors to consider when investing for commercial real estate Pune is a thriving city with plenty of opportunities when it comes to investing in commercial real estate. Thanks, to its IT and industrial boom, many from all over the country are seeking work and investment opportunities in the city. So, if you too, want to take advantage of this rising opportunity, you would want to invest in commercial real estate in Pune. However, before you jump straight in with your bankroll, there are a few things that you should definitely keep in mind. And with plenty of real estate developers in Pune claiming to have the best bang for your buck, caution should be your best friend. So, here is what you should know before commercial real estate investment. Location viability This is certainly one of the most overlooked factors and number one on our list. Understanding the viability of the location of commercial real estate will play a pivotal role in determining your ROI. To do this, you will need to closely follow the real estate trend in the city and check if the location you are choosing falls on the convenience map. While it is easy to find cheap commercial properties on the city’s outskirts, accessibility and mobility can be an issue. Choose a location with proper access to major landmarks across Pune. While choosing a prime location does add to the cost of the property, it is absolutely worth it in the long run. Marketability Not only getting a commercial property in a good location will mean guaranteed high ROIs. You will also need to ensure that the building is marketable. Ensure that the property is constructed by a reputable builder in Pune, check if the neighbourhood is good and look at the aesthetics and reliability of the structure. If your commercial property ticks all the right boxes, you have the right marketable property in your hands. Analysing investment risk Real estate investments come with inherent risks, even more so with commercial properties. The risk factor can also vary depending on the commercial sector you are in. So, analysing the investment risk before putting down a contract is critical. You can hire professionals who can help you assess this and give you a complete evaluation report on the property you are looking to invest in. Waiting for the right time to invest Whether you are looking for a car or a shop on sale in Pune, there is a right time to buy. The real estate market looks and feels much like the stock market with volatility in pricing. The ideal type to buy a commercial property when there is a lack of demand. This will ensure that you are getting the best possible price for the property. And with the rising demand, you should see an exponential rise in your ROIs.

2. Litigations Another crucial factor to keep in mind is to check for any previous litigations. These are pending legal proceedings against the property. While most reputable builders in Pune will always offer litigation free documents, it is absolutely essential to cross check the facts. The best way to do this is to hire a professional lawyer who specializes in property related litigations. Once you get the green light, you are free to go ahead with the investment without any worry. Remember, investing in commercial real estate requires a lot more knowledge and research than residential projects. From determining the location to checking for any pending litigations, there is plenty you need to do before plunging in. If all this seems too overwhelming to you, you can always opt for professional help. This way, you can be sure of what you are betting on.