Commercial real estate is booming in Pune. A thriving city that is growing larger by the year, its commercial spaces and their takers have also gone up. Pune has a considerable number of malls, and most of it is occupied by merchants and vendors.
Aside from malls, other commercial real estate options also seeing great success in the contemporary market are hotels and guest houses, office buildings, apartment buildings, warehouses and land investments.
Commercial real estate investments are a great way to bring diversification to your investment portfolio. Real estate investments are always safer investments that protect your investment portfolio against market fluctuations.
Commercial properties like shops for sale in Pune can in particular bring greater returns on investment. Faster returns on investment as well as lucrative long term returns have made such property investments in Pune a popular choice among investors looking to add income as well as stability to their portfolio.
What do I need to know about commercial real estate investment in Pune?
Before you decide on what asset you want to add to your investment portfolio under commercial real estate, there are some factors you need to consider.
i) Accessibility: How far is the asset you are considering from nearby amenities such as transport and other infrastructure? Depending on the kind of commercial real estate you are looking at, your needs here could be different.
A land-based agricultural property investment is better off in more suburban areas while an office building needs to be situated such that office workers can both travel to it and operate in it.
ii) The Asset: What you are investing in will always be the most important indicator of the returns on investment you can expect. Before investing in any property, always check the market value of that kind of property at the time you are looking to invest. Comparing the market value to the price offered to you will provide you with more information on whether you should invest or not.
iii) Potential for Returns: Analysing the potential return on investment on a property is important in understanding how that investment can affect your portfolio.
This becomes especially important if you are actively looking for fast returns. An office building in dire need of repairs needs added renovation costs even before you can attract vendors.
A thorough inspection of property rates in Pune, the asset, its history and the market layout of the neighbourhood of the commercial property you are considering will help you in making the right choice about commercial real estate investment.
What kind of commercial properties are available for real estate investment in Pune?
There are many kinds of commercial properties available for real estate investment in Pune. These range across various sectors and you can choose what kind of commercial property for sale you are looking at based on how you want to utilize your newly purchased market space.
Invest in Land
Land always has been and continues to be one of the most lucrative kinds of real estate investment. The main thing to look at is what the land you are looking at is valuable for. If it is farmland, you can hire workers to grow agricultural produce and rear livestock. A land that is barren can be converted into another kind of property, such as an office or apartment building, provided the land has accessibility to transport and other infrastructures.
Invest in an Office Building
A good office building will always have tenants wanting to rent office space. But there is more to consider than just the building. A badly located building or one in a purely residential area will attract less vendors than one in the commercial or IT hubs.
Invest in Medical Spaces
These include spaces for hospitals, nursing homes, visiting chambers and pharmacies. The need for these establishments is always high and finding a vendor willing to pay rent in a good location is not difficult. Even more suburban areas benefit from pharmacies and visiting chambers. Since medical facilities are more in demand, they attract vendors looking to rent the space from you.
Invest in Retail Buildings
These include buildings such as malls and shops. While a successful retail property is a very lucrative addition to your investment portfolio, it needs to be well located and in an area where people are likely to show an interest in renting the commercial property. This means that a mall in the outskirts of the city will attract fewer vendors than one in its commercial center.
Invest in an Apartment Building
Letting out living space to tenants looking for accommodation is a great way to ensure long term economic returns. Families who rent your apartment building are likely to want to continue living there, bringing in a stable income. Apartment buildings also keep attracting people until all the available spaces are rented out.
Invest in an Industrial Building
These need more research on not only the building itself but what it manufactures. Industrial buildings are slightly trickier than other commercial property investments in Pune, and less common as well.
Invest in a Warehouse
Storage spaces have always been popular commercial real estate investments. There are plenty of storage spaces available for purchase in Pune. However, the location of the storage as well as how accessible it is to various kinds of vehicles will determine how successful it will be in drawing in clients.
Invest in Letting Spaces
These are slightly different from apartment buildings and involve affordable accommodation in the form of a hostel or a dormitory or a paying guest house in Pune. Hotels and other kinds of accommodations can also fall under this category. These properties always attract tenants as Pune is seeing a boom in rented property.
As long as you are careful about the property you purchase and know about know how to invest in commercial real estate in Pune, diversifying your portfolio while making profitable returns is not a pipe dream.