Introduction
Why is commercial real estate the most popular investment choice among investors? This long-standing inclination stems from the distinct benefits that commercial buildings provide.
For many, commercial real estate remains a pillar of their investment portfolios because of its potential for strong returns, long-term stability, and the security of physical assets.
Let’s examine the various benefits of investing in commercial real estate and the factors contributing to its enduring attractiveness.
| DID YOU KNOW? An additional 2.8 million jobs were added by the commercial real estate sector. |
7 Reasons Why Investors Prefer Commercial Real Estate Investments
In this section, we will delve into the reasons why investors prefer commercial real estate investment:
1. Portfolio Diversification
Investors often favor commercial real estate for several reasons, and portfolio diversification is one of the key benefits. Including commercial properties in portfolio diversification helps spread risks across various asset classes, reducing vulnerability to market fluctuations.
| As per reports, Commercial real estate combines the qualities of debt and equity by offering 8–9% annual returns through rental yield and the chance to share in the underlying property’s appreciation. |
2. Tax Benefits and Incentives
Commercial real estate offers several tax benefits or incentives that can enhance overall investment returns. Investors benefit from several deductions for property taxes, mortgage interest, and depreciation. These tax advantages may considerably lower the property’s taxable income, boosting cash flow and total profitability.
| Pro tip: Remember to keep up with current commercial mortgage rates in order to make well-informed choices about your available financing options. Certain investors can now deduct up to 100% of the property’s value in their first year of ownership due to the Tax Cuts and Jobs Act of 2017. |
3. Property Value Appreciation
Over time, commercial property investments have the potential to appreciate in value. As the property becomes more desirable with great connectivity, top-notch educational institutions, and hospitals, the value of the property increases, thus drawing maximum return on investment for investors.
4. Growing Office Workspaces
As per reports, there has been a 25% vacancy rate in Chennai offices. The rent in these regions increased from 5% to 10%, and Mount-Poonamallee Road, Perambur, Guindy, and pre-toll OMR are some of the most sought-after locations for commercial real estate investments.
There has also been a noticeable growth in the availability of commercial real estate in these areas.
An approximation of 4 million square feet of office space are grossly absorbed annually by Chennai’s commercial real estate.
| News 18 reports that new office supply across the top 7 cities increased by 5% in H1 FY2024 compared to H1 FY23. Chennai’s average monthly office leasing value increased by 10% yearly, from Rs 62 per sq. ft. in H1 FY2024 to around now. |
5. Warehousing
The demand from the manufacturing sector has led to a solid 3.4 million square feet increase in warehouse leasing operations. The largest manufacturing hub in Chennai, the Sriperumbudur – Oragadam cluster, has a 53% demand for warehouse leases.
The northern belt, the southern region, and the southwest comprise most of Chennai’s warehousing market. Since warehouse space grows by roughly 22% annually, investing in it can be fruitful.
6. High Returns, Low Risks
Commercial real estate investments usually yield substantial returns compared to the associated risks. Commercial real estate often has less volatility when compared to other asset classes, like equities, although no investment is entirely risk-free.
Commercial real estate is an appealing alternative for many investors looking for a mix of risk and reward because of its lower risk profile and potential for substantial profits.
7. Steady Cash Flow
Through rental income, investments in commercial real estate can offer a consistent cash flow. Commercial properties in prime locations typically have steady tenant populations, giving investors a constant flow of revenue.
Commercial real estate is a desirable investment option for anyone looking for assets that generate income because of its consistent cash flow, which can assist investors in meeting their financial responsibilities and goals.
Suggested Read: The Advantages of Commercial Real Estate in Today’s Market
Why Does Market of India Remain the Best Investment Choice in Chennai?
1. Market of India’s Array of Trades and Commodities: Market of India offers 1,00,000 + commodities and is equipped with modern infrastructure, ensuring that shops are easily accessible. We expect to witness a projected 40 lakh footfall due to these developments, which attest to its accessibility and allure, providing a smooth trading experience for our investors.
2. Market of India’s Sprawling Structure: 5000+ Shops and Office Spaces: Market of India offers a wide range of shops and office spaces, which makes it a sprawling marketplace for traders who want to make their dream reality of setting up their shops in Chennai’s largest wholesale and retail market.
To meet various requirements, our cutting-edge marketplace provides more than 20 ancillary services that guarantee a comprehensive trading experience.
India Trade Centre offers cutting-edge Class A office spaces, emphasizing highly functional and creative layouts. The thoughtful setup improves output and fosters a happy work environment.
3. Investment Opportunities in Market of India: Starting at 45 Lakhs & Assured Rental at Market of India – Rs.100 per sqft: Market of India presents a compelling investment opportunity, with shops starting at just Rs. 45 lakhs and an assured rental of Rs.100 per square foot.
With guaranteed rentals, this alluring offer gives investors the chance to own a valuable asset in a booming market and ensures a consistent flow of income. It is the best option for those wishing to invest in a property with the potential for both capital gain and steady rental returns because of the strategic pricing and rental certainty.
4. Market of India’s Facilities: Enhancing Trade Experience: We offer a range of top-notch facilities designed to enhance the trade experience, which are as follows:
- WiFi-Enabled Shops: Recognizing the significance of connectivity in today’s business world, our market provides WiFi-enabled stores, allowing dealers to manage online transactions and maintain communication with their clients effortlessly.
- Business Centre: A fully equipped business center caters to traders’ varied operational and administrative needs. Our marketplace offers conference rooms, workspaces, and other essential amenities to ensure smooth business operations.
- 10,000+ Parking Spots: Market of India offers over 10,000 parking spots, emphasizing accessibility and convenience. The ample parking ensures visitors and shop owners can easily access the market without parking hassles.
- Vastu-Compliant Shops: The shops in our marketplace are designed to adhere to Vastu principles, aiming to create a prosperous and conducive environment for business growth.
- 24/7 Advanced Security: Security is our top priority, with advanced security measures around the clock. Traders and clients can feel safe and secure in an environment that ensures their well-being and protection.
- Strategic location: India Trade Centre, situated in SPR City, enjoys a strategic location that makes it a highly sought-after business address. Its proximity to Kilpauk, just 2 km away, guarantees convenience and connectivity. It is conveniently located among the city’s busy residential and business areas.
Wrapping Up
Due to its capacity to provide portfolio diversity, tax advantages, property value increases high yields with comparatively low risks, consistent cash flow, and expanding demand in essential sectors like office space and warehousing, commercial real estate remains a top choice for investors.
With its advantageous location, wide range of trades, and first-rate amenities, the Indian market stands out as a fantastic investment opportunity in Chennai, providing guaranteed rentals and a favorable atmosphere for business expansion.
So, what are you waiting for? Invest in India’s largest upcoming wholesale and retail marketplace, which offers 15.5% p.a. Assured returns and excellent access to cutting-edge facilities, elevate your shop or office space to great heights of success.
FAQs
1. Why is investing in commercial real estate a wise decision?
Commercial real estate is a wise investment because it provides portfolio diversification, tax benefits, consistent cash flow, and the possibility of large profits.
2. Why is Market of India regarded as a top investment opportunity?
Market of India is regarded as a premier investment opportunity because of its ideal location, 20+ ancillary services offered, loading and unloading services, cutting-edge infrastructure, and alluring investment opportunities with guaranteed rentals.
3. How does Market of India improve investors’ trading experiences?
With WiFi-enabled shops, a fully furnished business center, ample parking spaces, Vastu-compliant shops, and cutting-edge security systems to guarantee a seamless and safe trading environment, the Market of India improves the trade experience.
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