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Is It Wise to Buy Office Spaces Rather than Residential Ones?

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Gurgaon is the city of tech-savvy people. Here, famous IT companies have settled their business. DLF Cyber City is its biggest example. If you start living in Gurgaon once, you can’t get over it. You will want to stay here for a better quality of living. Many people shift to this area of the Delhi NCR region every year to get a proper job. Corporate employees also move to the sophisticated apartments around this area. Hence, the demands for residential apartments remain always high.

Is It Wise to Buy Office Spaces Rather than Residential Ones

Investing in real estate has always been a good decision when you think of long-term returns on a regular basis. Presently, commercial space in the top cities, along with emerging property hubs like Gurgaon is witnessing a rise in demand. One of the prime reasons for which people choose to invest in real estate is the high degree of security that they can enjoy.

Property investments are relatively safe, as compared to share markets or mutual funds. The property market is not as volatile, as compared to these sectors. Besides, property prices keep raising in the main cities provided the market conditions remain stable. Over the last few years, the Indian real estate sector has witnessed the increasing demand for commercial spaces. Evidently, a large number of investors are interested in buying commercial property in Gurgaon. The demand for commercial property is presently greater than that for residential ones. Evidently, it would be wise to invest in office and retail spaces, rather than buying residential properties.

The Investment Potential:

In the last few years, the real estate industry in India has gone through several rough patches. The government had come up with some reform policies, starting with demonetization. Next, it followed up with the implementation of RERA and GST. The liquidity crisis has also been slowing down the growth of real estate sector in India. However, amid this crisis, the demand for commercial space in India has remained consistent. Over the years, the key metro cities have witnessed an increasing demand for commercial real estate. This implies that investing in this particular segment of real estate can be a lucrative deal. Presently, both MNCs and indigenous companies are expanding their branches to the key cities in India.

The demand for high-quality office spaces is increasing. Particularly, the IT and pharmaceutical sectors have been expanding, and companies are looking for Grade A office spaces. The demand for quality retail spaces is also on the rise. Investors are presently looking for a shop for sale in prominent locations in major cities. The rental income generated from these properties is rewarding indeed. In the coming years, the owners can enjoy a consistent stream of revenue from commercial property in India. Considering this investment potential, it would be wise to invest in commercial property now, rather than residential ones.

Emerging Commercial Hubs:

The demand for residential property has also risen considerably in the key cities. However, this trend does not match up with the rate at which the demand for commercial spaces in India has risen. Besides, people are looking for affordable homes now. Although the luxury segment is witnessing a rise in demand, the returns would be better, if you invest in commercial property. Particularly, some of the suburban areas around the metropolitans have been experiencing the penetration of commercial projects in recent years. Besides, investors are interested to buy office space in Gurgaon. The reason is, Gurgaon has got a strong commercial infrastructure. The city also has good connectivity to Delhi and other places in the NCR. The IT industry is going strong, along with developments in various other sectors. Considering the well-developed business infrastructure in this area, companies are expanding their branches to Gurgaon. This is the prime reason for the development of all the suburban areas around the main cities like Delhi, Mumbai, Pune and Bangalore.

With the inception of the REITs, the real estate landscape in India is further likely to change. Investments would become more lucrative. The industry has already gained a greater degree of transparency, due to the reform measures. Therefore, this is a good time to buy property in Gurgaon. The investors can enjoy a high return in the form of lease and rents.

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