Commercial property: Opening up to retail investors

Buying an office or retail space is a huge investment, which is why commercial realty has been traditionally seen as an asset class that only institutional investors or high net worth individuals could invest in. That, however, is changing. Many retail investors are now getting into the office real estate game.

For a perspective of the opportunities in Indian commercial real estate, consider this – Manhattan in New York has 450 million square feet of Grade A stock, while London has 200 million square feet. In comparison, India’s collective office space stock accounts for only 375 million square feet. This showcases the long-term potential for office space at all levels in India. The next few years will see a spurt in the services and knowledge sector, opening up opportunities for the retail investor.

INVESTMENT ROUTES

There are three ways to invest in commercial real estate: directly buy office space from a developer, buy stocks of a developer in the commercial realty space, or invest in a real estate fund focused on commercial real estate.

As the quantum of investment is usually huge, the buyer needs to take informed decisions. Another option, real estate investment trusts (REITs), is expected to be opened up shortly by the government. REITs are pooled investment entities where the corpus is invested primarily in completed, income -yielding real estate assets and distribute a major part of the income generated among their investors.

Many developers, especially in cities such as Mumbai, are today offering smaller units (as small as 500-1,000 square feet) in Grade A buildings given the higher vacancy and pressure on pricing. This is in sharp contrast to the scenario a few years ago, where only larger units were available – making it tough for a small investor. Investors considering retail space can now look at a multitude of affordable options in free-standing high street outlets or shops in malls. The advantages of smaller units are two-fold: it is easier to find tenants, and the premises can also be used by their owners. Today, professionals like doctors, auditors, stock brokers and lawyers are buying commercial properties for investment and

Source:financialexpress.com

For more Information:-  Sanjay rastaugiSanjay Rastogi Builder,Real Estate IndiaReal Estate Company in India,  Affordable Houses in Noida  Email Us Or SMS :SAVIOUR at 53030

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About Saviour Builders

Saviour Builders Pvt. Ltd. is one of the leading real estate developers in Delhi NCR. The Saviour Group is the tantamount to deliver contemporary quality amid excellence and diverse innovation. It has emerged as one of the prominent entities in the real estate sector of India and is into residential, commercial and township projects in and around Delhi NCR. The Group devotes its complete dedication to reach higher and build better. With its immense hard work and loyalty, Saviour has accomplished the dream of delivering various tremendous infrastructures round the city. We intend to provide you with affordable houses in the Delhi NCR region. Some of its significant projects like Saviour Greenisle, Saviour Park, Saviour Street, Gaur City -1, Gaur City -2 and many more have created a new benchmark within the trade. Today, we have our presence at Noida, Noida Extension, Greater Noida (West) and Ghaziabad. We, at Saviour, are building homes based on trust and you are invited to build your future with us. We help you live your dream of living in style.

Posted on December 20, 2013, in Real Estate and tagged , , . Bookmark the permalink. Leave a comment.

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