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Benefits of commercial properties in Hyderabad

Commercial property is a highly stable asset in current time’s real estate

landscape.With the economy set to develop in the near future, there will be
increasing demand for commercial properties in Hyderabad. With the rise of
Hyderabad as an ideal destination for multinational software companies and global
pharmaceutical majors, R&D centres, and global educational institutions destination,
commercial real estate projects is a safe bet for investors eying for attractive
returns. The presence of the thriving ITES sector adds value to the commercial
spaces in Hyderabad.

For those who intend to pump money into real estate, commercial property is a
sound option in preference to residential property. Across the globe, many big
investment groups have invested significantly in commercial properties.

What is a Good ROI on Commercial Real Estate?

In India, in particular, in Hyderabad, the returns in commercial real estate are
one of the best in the world. While returns from residential homes are between
3-4 percent, it is nearly 8 percent e case of commercial properties. In some
locations, the yields could touch 10 percent.
Owning a commercial property has scores of benefits. If you are eying for
reasonable rental income to support your income and avail wealth tax
exemption, then commercial real estate could be the ideal benefit for you.
Benefits accruing out of commercial properties will be reliable and steady
annual returns when compared to other investments.

To gain benefits out of the commercial property for sale in Hyderabad, it is

essential that the commercial property offers good amenities like wide parking
space, fire safety measures, back-up power supply for lifts, and good quality
wiring in offices for running computers and so on.
For commercial property, it is all the more essential to ensure that it does not stay
vacant for a long period.
Residential Properties Vs Commercial Properties in Hyderabad
Rental profits arising out of Commercial Real Estate are always much higher when
compared to residential properties. Although in residential property, rent is
calculated on the basis of per square foot, the rental return from commercial
property is always significant. Higher rental property returns mean a higher monthly
Commercial real estate property enables broaden an investor’s portfolio in
different ways such as:

Earning Potential: A right location plays its part in signifying the value ofcommercial
property and you can gain an enhanced annual return from commercial properties.

Cash Flow Stability: Dissimilar to residential leases, commercial real estate

leasesrun for long periods. This enables steady cash flows to the investors for long

Tenant interactions are foreseeable in commercial properties: Commercial

property landlord link is between two business establishments than two individuals.
This means the interface is highly professional.

Commercial homes will expand risks: If commercial property is leased to various

tenants, then there is a less probability of risk.

REIT will turn the commercial property into professional: With the proposed
Real Estate Investment Trust, commercial real estate is going to be managed by a
Professional Asset Management Company, as in the case of mutual funds. REITs
will offer depth, liquidity, as well as transparency in the market. With this policy still in
preliminary stages, REIT’s guiding principles once refined will give the necessary
impetus to commercial space.

Investing in a home in which a REIT is already a part is an excellent idea since the
due diligence will be taken up by the fund and you can be certain of a good quality

Reduced maintenance expenditure: Whilst in residential properties, the

expenditure on maintenance of the premises would require a high shell out to the
owner, whereas in the commercial space, the tenants would take up on their own as
it requires them to keep the location neat. Retail spaces would require enhanced
maintenance if they are to add footfalls over time.

Depreciation advantages: Investing in commercial real estate property gives a

higher tax shelter by way of depreciation of the property and improvements
depending on the built-up of the asset.
A top hedge against Inflation: Commercial property offers a better hedge against
inflation when compared to residential property. This could come by way of
escalations that come in together with rentals while leases are signed. There is a
likelihood of an extended appreciation in rent while for a replacement tenant after a
tenant has quit the space.

Higher-income potential
Compared to other investment options, the annual returns are much higher for
commercial properties. In Hyderabad city, the returns gained from suburban office
spaces tend to be on the higher side compared to the commercial housing

Excellent appreciation value is another advantage of investing in

commercialproperties. Unlike in stock market investments, which is limited to buying
and selling, commercial properties give you the liberty of investing in the
improvement of your properties so that you can increase the value of it. If you own
a commercial real estate property you can keep modernizing your property to
meet the contemporary needs, be it home or office. An added advantage is that
along with the local developments, the rent/value of your property keeps increasing.
That’s the beauty of owning a commercial real estate property.

If you are looking for good commercial properties for sale in Hyderabad?

Santosh Kumar