Commercial Investment - Smart Real Estate Investment Platform

Top 5 Indicators of a Good Commercial Office Space Investment

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Evaluating the commercial office space market is the first step in developing a strong commercial real estate portfolio. When looking for office space to invest in, there are a few things to bear in mind. Investing in commercial real estate provides several advantages. Whatever asset you are considering, commercial real estate provides unrivaled stability and growth among modern investment possibilities. Commercial real estate will always be a rising route because new firms emerge all the time, and their needs expand in tandem. Whether it’s for supply and logistics support via warehouses, growing production via assembly lines, or extending corporate presence via offices, the demand for greater space is always there in the corporate sector, much more so than in the residential one. 5 Indicators of a Good Commercial Office Space Investment It is not a given that an office space accessible anyplace is always a good investment option. A commercial real estate office space investment might make or break your portfolio depending on where the asset is, how the market demand is, and the type of rentals in the location. Bearing this in mind, let us look at the top 5 factors to consider while looking for an investment opportunity The Asset’s age: Although old is gold, this is not always the case. Older office buildings are more difficult to maintain and might incur significant repair and upkeep costs. These can cut into your profits. Exiting a commercial real estate investment is much more difficult, so you don’t want to lock up your assets with a property that requires maintenance and care regularly. Older assets will also be less profitable for clients since they cannot accommodate numerous new features. Location: The location of commercial office space is quite important depending on the tenant’s company. While headquarters’ or corporate offices favor cities’ Central Business Districts, alternative locations may be available based on other businesses in the region. MNCs and bigger firms, in general, want modern facilities and structures that can expand well. Builder: Larger builders have access to superior plans, designs, and expertise, all of which contribute to the creation of some of the most interesting workplaces, whether for a single firm or as a co-working space. Keeping track of who is in charge of the building’s construction and design can help you determine the kind of tenants you may expect in the long run. Aesthetics: This aspect is related to the builder as well as the assets location. Designer spaces are frequently influenced by adjacent structures and demographics. In a neighborhood dominated by traditional architecture, you’d be hard-pressed to discover minimalist or industrial interiors. There may be exceptions, but they do not constitute the norm. Leases & Rents: The market’s average going rent, vacancy rate, and lease term length will be the norm for any new office space that opens. It is not advisable to expect any significant appreciation in contrast to market opinion. If you want to invest in assets that are becoming available in the region, you need first learn about the market. It is also worth noting that the addition of any key connecting route to any location would assist enhance appreciation in a very short period. Conclusion Keeping the mentioned tips in mind will allow you to search for better office space investment alternatives and narrow down your selections more efficiently. If you are seeking Grade A properties in the office sector for investment, choosing fractional ownership through Asset Yantra & Gak Group will allow you to get started on creating your commercial real estate portfolio quickly. Asset Yantra is India’s premier and preeminent commercial real estate investment organization, with a presence in the cities. It provides a full range of tailored and end-to-end commercial investments and advisory services to its clients, backed by its experience in real estate and market information. It allows you to invest in commercial real estate via fractional ownership starting at Rs.25 lacs. IRRs range from 14 to 21%. To learn more about how we may assist you with your commercial real estate investing journey, please click on the link above. Top 5 Indicators of a Good Commercial Office Space Investment FAQs Is a commercial office a good investment? Purchasing a commercial office space is a wise investment. Commercial workplaces are in high demand as more individuals invest in their enterprises for the sense of security they bring. The future of commercial real estate is bright. What type of commercial property is most profitable? Properties with the greatest potential for return on investment are often those with the greatest number of renters. Multifamily complexes, student housing, office space, self-storage facilities, and mixed-use are examples of commercial real estate properties.

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Capital, A Challenge when Buying Commercial Real Estate: Here’s how Fractional Ownership solves this

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The recent shift in the lifestyle of people after the pandemic has taught us that every conventional form of operation can be altered as per requirements. What it means is that, before the pandemic, most of the community was actively and passively making key decisions about their lives outside the cyber bubble or the internet. Most people across the world are probably drawn much closer to alternative investment options such as commercial real estate. Similarly, investments and alternative investments have seen a change in the past couple of years. More and more people are being attracted to investment opportunities and alternative investments. Which seems to be a general trend in the developing countries of the world. We’ll also cover the concept of fractional ownership and how it solves the difficulty faced by investors due to the high magnitude of required capital. Let’s Begin! What is fractional ownership? Real estate investments are usually accompanied by the fact that they need a large amount of capital. But, what most of the new investors out there don’t know is that the concept of fractional ownership is something that can solve all difficulties for the required capital. In Detail: Fractional Ownership: How this investment is unlocking real estate opportunities Is Fractional Ownership solving the problem of capital challenges? With fractional ownership, any keen investor can invest in alternative investments like real estate without the need to purchase all of the inventory that is being sold. The name itself suggests that potential investors can invest. Purchase a fraction of the actual property that is being offered. Through this, the problem of fractional ownership is solved as the shortage in capital demand cannot be the deal breaker for an interested investor. The future of fractional ownership in the Indian Commercial real estate sector: “Investing in commercial real estate is getting more popular as a result of increased uncertainty in the stock market and lower yields on bonds and fixed deposits”. Retail investors may now invest lesser sums in India’s burgeoning commercial real estate industry thanks to fractional ownership, allowing them to diversify their income. “The future of fractional investing is bright and sustainable. As a result, retail investors have hopped on board to ride the surge of safe and stable returns. As well as broaden their investment portfolio”, adds Mohit Goel CEO of Omaxe Ltd. Ashish Bhutani, The MD of Bhutani Infra, says that people can now purchase a fraction of a luxury office space, that was originally worth 90 crores. Moreover. They can become one of the rightful owners of that property and get returns of as much as 3% of their initial investment, let’s say 10 lakhs. And it will be very profitable for them to get even a small amount of 30K and be happy to see it grow even after! “Fractional ownership ensures an increasing rate of return in the form of rental income and capital gain.” Conclusion If you’re looking for an alternative investment platform that will help you to make alternative investments in lucrative assets around the country. Then Asset Yantra is the right choice for you. And this platform has everything you need to give boost to your income through a variety of diverse assets. Asset Yantra has the feature of fractional ownership. Which will let you be the owner of impressive properties around the major economic hubs of the country. Sign up now. And enjoy the benefits of having your portfolio of real estate investments. Capital, A Challenge when Buying Commercial Real Estate: Here’s how Fractional Ownership solves this FAQs What is fractional ownership? Fractional ownership is an investment approach in which the cost of an asset is split between individual shareholders. The usage benefits that the fractional owners receive are comparable to those of timeshare owners. What is the future of fractional ownership in the Commercial Real estate sector? The concept of fractional ownership in the Indian real estate market is still in its infancy, but it is expected to get valued at more than USD 5 billion. Fractional ownership is the future of the Indian real estate industry since it addresses an issue with commercial property: the high entry barrier of required investment.

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Commercial Real Estate Leases: Different Types and which is the Best?

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Leasing commercial space is a significant financial commitment and requires commercial real estate leases. These leases can be intimidating, especially because they are a huge commitment that can be costly. However, they are not as difficult as many people believe. A commercial real estate lease, like most other legal transactions, should not be taken lightly. Here’s an explanation of the many forms of commercial real estate leases and what they imply for renters and landlords. What are Commercial Real Estate Leases? Commercial leases, as opposed to residential leases, are an arrangement between a renters (company) and landlord that specifies the property only for commercial or business use. What makes Commercial Leases Unique from Residential Leases? It’s critical to understand that commercial and residential leases are fundamentally different, practically and legally. Here are the primary differences between them: No Standard Formats: Many commercial leases are not established on a standard form or agreement. Instead, each commercial lease gets tailored to the interests of the landlord. Less Consumer Protection Legislation: Most consumer protection regulations that apply to residential leases do not apply to commercial leases; for example, there are no security deposit limitations or requirements safeguarding a tenant’s. Long-term and legally binding: A business lease is not readily broken or changed. It is a legally binding contract, and frequently a substantial sum of money is at risk. A lease in the commercial leasing market normally begins at 3 years and might contain options at specified intervals that will keep your organization there for an extended period. Negotiability and adaptability: Because companies frequently require particular amenities in their locations, and landlord are typically eager for tenants and prepared to extend special offers. Commercial leases are generally subject to considerably more discussion between the business owners and the landlord. Types of Commercial Real Estate Leases Lease formats for commercial real estate can vary massively based on the property, tenant profile, and business model of both the tenant(s) and the property operator. It makes no difference whether you’re a seasoned pro or brand new to the commercial real estate industry. Knowing them will help you decide which one to employ for the circumstance. However, we will advise you which one is better for each occasion. Net Lease: Net leases are the most popular type of commercial real estate leasing. The renter must pay the base rent plus a portion or all of taxes, maintenance, and insurance under these leases. Furthermore, you get to shift some of the risks to the renter, providing an additional incentive for them to make the most of it. It’s also worth noting that there are many kinds of net leases: Single Net Lease: Rent plus one of the three previously indicated running costs constitutes a single net lease. Tenants on a single net lease pay a fixed rent plus a portion of the property tax (which would get negotiated with the landlord). Double Net Lease: Rent plus two of the three running costs is a double net lease. A double net lease is comparable to a single net lease in that the tenants pays a portion of the property insurance plus the property tax. Triple Net Lease: Rent plus all three primary running expenditures gets referred to as a triple net lease. A triple-net lease is an agreement between a tenant and a property operator in which the tenant is responsible for all main operational expenditures at the property. The Percentage Lease: The percentage lease, as the name suggests, is based on the tenant paying basic rent plus an additional percentage. The monthly basic rent is the amount is a predefined proportion of the property’s sales revenue. Because of the necessity for the %, percentage leases are typically employed for retail firms and malls. The Full-Service Gross Lease: The landlord normally benefits from the prior two commercial real estate agreements. However, if you are the tenant, you will be glad to hear that the full-service gross lease will benefit you the most. In this sort of lease, the landlord is required to pay the majority, if not all, of the customary costs. Takeaway There are just three basic types of business leases to be aware of. Each offers advantages for the individual side, and each is changeable, so you’ll need to properly discuss the agreement if you want the greatest conclusion. Asset Yantra is a well-known portal in India that provides real estate investment opportunities in Chennai, Hyderabad, and Bangalore. It provides feasible commercial space investment alternatives via fractional ownership and crowdfunding. The IRRs vary from 14 to 21%. Commercial Real Estate Leases: Different Types and which is the best FAQs What is the most common type of commercial lease? The most prevalent kind of lease in commercial buildings is a triple net lease (NNN lease). The rent under a NNN lease does not include operational expenditures. Utilities, upkeep, property taxes, insurance, and property management are all examples of operating expenditures. What are the 4 primary types of leases? There are different types of leases, but the most common types are absolute net lease, triple net lease, modified gross lease, and full-service lease.

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6 Important Questions to Always ask before Investing in Commercial Real Estate

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Buying commercial real estate is a big decision, and it’s important to do your research before making your purchase. There’s no magic formula for buying commercial real estate, but there are some questions you should always ask when considering an investment in this asset class. In this post, we’ll outline six key questions you should be asking before investing in any type of commercial property. Also Read: Commercial Real Estate: A smart choice for today’s smart investors How will financing your investment affect your cash flow? Financing your investment is one of the most important factors in commercial real estate investing. If you cannot afford it, do not buy it! You need to know how much work and money you’re willing to put into your property before buying it. If you have bad credit or no credit at all, finding financing might be difficult for some buyers. This can be especially true if they are looking at properties outside of their price range (i.e., larger properties). To avoid this situation, remember that things like “appraisal” fees – which will increase if financing isn’t available. And can be added onto the purchase price when buying with cash instead of borrowing against future earnings from rental income or sales prices over time. So long as this process doesn’t result in any additional debt obligations after closing day has passed. Property performing currently? The performance of a property is one of the most important factors when deciding whether or not to invest in commercial real estate. This can be sorted out by looking at: How much rent is being collected? What are the expenses associated with operating the business, including taxes, insurance, and maintenance? What is being spent on debt service (i.e., interest)? How many people are living or working there now or during some period in time (occupancy rate)? Risks of investing in this location? Location is one of the most important factors in commercial real estate. If you want to purchase a building or land for your business, it’s crucial to know what kind of neighborhood you’re investing in. Are there any potential problems with the location? Are there other businesses nearby, and will they cause congestion on their own? The answers to these questions can help determine the risk associated with buying property in that particular area. If you want to know the best place for your business, many factors need to be considered. If you’re looking for an area with great access and easy transportation. Then knowing the exact location of each building might not be enough information for now. But if there are other factors at play (like flood risks). Then knowing more than just where exactly everything sits within its physical space could give insight into whether or not this investment would work out as planned once completed. Potential profit margins for the property? Profit margins are a crucial factor in determining if an investment is worth it. They can help you determine whether or not the property will generate enough money to cover your costs and make a profit, as well as how much of that profit you’ll receive. Your commercial real estate purchase may have different profit margins depending on its location, size (the square footage), age (how long the building has been standing), and other factors like vacancies or tenant turnover rates. These factors all impact each asset’s ability to generate income for investors. And since they’re beyond your control when purchasing a piece of commercial space. Knowing what kind of return on investment you can expect will be key in deciding whether or not buying something is right for you! What are the projected capital expenditures for this property? Capital expenditures are the costs of maintaining a property, from small items like paint and flooring to larger ones, like large-scale renovations. They can be high on some properties and low on others. The reason for this is that some properties require more maintenance than others. For example, an old office building might require more renovations than an apartment building or condo complex. Who will manage the property, and how much work will that involve? You should also ask about the property manager’s responsibilities. Are they simple to collect rent and manage maintenance issues, or do they also oversee all aspects of operations (such as marketing)? You’ll also want to know whether your prospective management company has any special qualifications or certifications to help ensure that it can handle its duties effectively during peak seasons (e.g., during holiday periods). In addition, you’ll want to make sure that each potential company has experience with similar properties in other locations where it has managed properties successfully before. And if so, how long ago was this experience obtained Finally, does this company have a track record for success in different types of investment properties, such as apartment complexes versus office buildings versus retail centers? Knowing the answers to key questions can help you evaluate whether a commercial real estate investment is right for you. There are many reasons why commercial real estate can be a good investment, but it’s important to do your homework and ask the right questions before making any decisions about investing in this sector of the economy. Conclusion Now that you have read through this guide and are ready to start investing in commercial real estate, it is important to go through the steps above. It’s also important not to rush into deciding whether or not an investment will work for you. Instead of rushing into something before doing your research, take time out for yourself and do some reading on the subject first. You can choose a reliable investment platform like Asset Yantra for your commercial real estate investments.

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Commercial Real Estate: A smart choice for today’s smart investors

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Investment and real estate are the first thoughts that come in mind for Indian customers. This is because this market area is often seen as a safe choice for investing. But, commercial real estate has gained popularity over time. And, investors are now increasingly eager to invest in commercial real estate. What exactly is commercial real estate? To begin, it’s define commercial real estate. In layman’s terms. Commercial property is any property that is not classified as residential property. These assets include naming a few, offices, buildings, shopping malls, hotels, and factories. Residential property is used by a single person, whereas commercial property is utilized by several people. Whether we are talking about commercial property for investment or sale, the decision is always advantageous. But, an investor should always use extreme caution when investing in real estate. Commercial real estate: A Smart investment option Commercial Real Estate (CRE), an important component of the real estate market, often consists of commercial, retail, and office properties. Back in 2020, the pandemic had a tremendous influence on the real estate market, particularly the commercial component. It was, however, resilient in its approach and therefore swiftly embarked on the path to recovery. The market is already expanding rapidly, and according to Mordor Intelligence, the Indian commercial real estate industry would increase at a CAGR of 13% from 2022 to 2027. Investment in commercial real estate is increasing in tandem with this expansion. According to KPMG, the resumption of business normality and the growth in flexible spaces, along with technology improvements, will especially boost this trend. Shop cum Offices (SCOs): A Trending Commercial Real Estate Concept The Haryana government is behind the Shop Cum Offices (SCO) idea. This style combines commercial real estate and office space in the same building, particularly in excellent locations. They are freehold plots with basic infrastructure that may be constructed and customized according to the needs of the investors. The land is completely owned by the owner. Banks, healthcare centers, retail stores, cloud kitchens, dining establishments, and other properties are located on the bottom floor, while offices are located on the top floors. Such properties see a lot of traffic. In addition, capital appreciation is ideal, the stream of lease revenues is consistent, and the risk levels are low. It is most recent trend that is propelling the commercial real estate sector. The Haryana government’s commercially planned colony strategy is critical in propelling the SCO segment. Encouraged by this initiative, developers are marketing this notion as a real estate asset, notably in Gurgaon and Faridabad. SCOs are becoming a popular asset type for investors looking to diversify their portfolios. This category is attracting the attention of commercial real estate investors due to its numerous benefits and ability to combine retail and office space. Initiatives by the Government Deen Dayal Jan Awas Yojana, an affordable housing project The Haryana state government started the Deen Dayal Jan Awas Yojana, an affordable housing project, in November 2016. It is an effort aimed at encouraging the building of high-density planned communities in Haryana’s medium and low potential cities. They are being developed in a desirable position since the region is well connected to Delhi through NH8, SPR, and Sohna Road. Cyber city, Golf Course, Sohna as well as hospitals, hotels, retail outlets, educational institutions, and so on, are all nearby. Southern Peripheral Road: boosting commercial real estate development Another major example of the commercial real estate segment being a feasible investment opportunity is the fact that the Southern Peripheral Road (SPR) is attracting investors’ interest. This 845.5 crore initiative is anticipated to revolutionize the real estate market. The main reason is that it will connect Golf Course Extension Road, NH-8, and Sohna Road. Furthermore, different commercial real estate projects such as IT parks, retail malls, and stores cum offices, and so on are being built. When finished, it will not only promote the real estate sector but also serve as a preferred investment location for investors. According to the ANAROCK study, SPR will have a total availability of 3500 units by Q2 2022 and 2900 of these are currently under development. The project has acquired funding and clearance for reconstruction, which is projected to be finished by 2025. Conclusion Commercial real estate properties have an advantage when it comes to investing in today’s times for a variety of reasons. The key advantages of investing in commercial real estate include higher yearly rental appreciation, lifetime asset value, and a rise in demand resulting in a larger long-term return. The Shop Cum Offices concept is gaining traction with investors, owing to the development of hybrid work practices. Furthermore, the Southern Peripheral Road and then Deen Dayal Awas Yojana plan are promoting commercial real estate investments. Asset Yantra is an established Indian real estate investing website that offers opportunities in Chennai, Hyderabad, and Bangalore. It provides realistic commercial real estate investment choices like fractional ownership and crowdfunding for as little as Rs.25 lacs. IRRs range from 14 and 21%. Our goods, on the other hand, are classified to fit different economic levels of investors. The 3 categories are Growth, Growth Plus, and Yield. Commercial real estate: A smart choice for today’s smart investors FAQs: Is investing in commercial property a good idea? When compared to other property kinds, commercial real estate gives exceptional appreciation over a longer length of time. Investing in a quality commercial property via REITs or fractional ownership may also deliver great profits with a much smaller and more manageable cost. How does commercial property investment work? An investment in commercial real estate often requires a substantial sum of money that no single retail investor can offer. Real estate investment trusts (REITs) and fractional ownership are the two most frequent ways to invest in commercial real estate (CRE).

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6 Signs of a Healthy Commercial Real Estate Market

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Investments have their level of risk. There is a certain element of danger with commercial real estate as well. However, keeping an eye out for specific market indicators might help an investor stay ahead of the game and be lucrative. Investments are inherently risky. Along with the danger comes the opportunity to make a lot of money. What matters is that you understand your risk tolerance and how to discover the finest opportunity in whatever investment choice you choose to pursue. The same criteria apply to commercial real estate, which is a rather safe investment choice. The trick is to understand the characteristics of a solid commercial real estate market. So, let’s go through the key facts regarding a fantastic commercial real estate market – India – and how you may find additional potential markets based on the indicators you see in India. Commercial real estate is a solid asset class due to its physical form, isolation from most other market influences, and typically consistent appreciation rate. As a result, it naturally follows that any market that benefits from these characteristics would be beneficial to commercial real estate. Signs of a Healthy Commercial Real Estate Market Growth: A robust business and development infrastructure is essential for commercial real estate. The greater the number of firms and the faster their growth, the greater the multiplication of places & assets that may be employed by them. Despite the impending epidemic, India has experienced an increase in the number of new firms, as well as wider and faster uptake of new technologies. So, without a doubt, the first indicator is growth. Government Policies: Moving on to the 2nd point, growth is heavily reliant on biz-friendly government policies. The recent presentation of the Union Budget 2021 placed a strong emphasis on the development of infrastructure & real estate. In addition, Maharashtra gave tax breaks for builders and developers. The stronger the market, the better the policy orientation. Rate of Vacancy: The 3rd critical factor is the Vacancy Rate. It is just a proportion of the commercial real estate assets that are currently available for occupation. There are high periods of economic activity when these rates are relatively low, and others when they skyrocket. Just keep in mind that an average rate of 4% – 5% works well for a strong portfolio. Location: Even within the same market, vacancy rates might vary based on location. Assume a market contains assets for both manufacturing units and offices. The vacancy rate for one asset or both might alter depending on what business comes up in the location. Tenants: A renter is always required in any type of real estate investment. After all, the tenant’s rent is the foundation of your monthly earnings. When considering a possible commercial real estate market for investment, keep tenancy in mind. Tenants that are stable and well-established are always the best bet. Dynamics of Market: Market dynamics are not difficult to grasp. It only takes a lot of data collection & correct analysis. Even throughout the pandemic, the Indian commercial real estate market remained stable, & demand for offices, warehouses, and other asset types climbed in 2021. Creating a Solid Commercial Real Estate Investment Portfolio While commercial real estate is one of the most reliable asset classes accessible, there are basic ground rules that an investor may follow to gain significant rewards. When constructing your commercial real estate investment portfolio, keep the following points in mind: A long-term investment is essential for constructing to corpus through commercial real estate. Diversify your portfolio by utilizing several asset kinds in various marketplaces. There is no such thing as “guaranteed returns”. Keep an eye out for such advertising. Your portfolio’s appreciation is determined by the market rental rate and the vacancy rate. Conclusion It is insufficient to be happy with a single market. Depending on your risk tolerance, you may experiment with different asset classes and markets to see how investments in various circumstances might help you achieve your goals. The Asset Yantra method of commercial real estate investing via fractional ownership is an ideal way for investors to enter the commercial real estate market. It is a high-end Indian real estate investment platform with properties in Chennai, Bangalore, and Hyderabad. It offers commercial real estate investment opportunities such as fractional ownership and crowdfunding starting at Rs.25 lacs. IRRs range from 14 to 21%. To learn more about how we may assist you with your commercial real estate investing journey, please click on the link above. Do not miss: When is the best time to invest in commercial real estate?

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is there any association between the residential and commercial real estate?

Is there any Association between the Residential & Commercial Real Estate Markets?

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Investors in commercial real estate industry are frequently interested in the performance of residential pricing. Let us look at how the residential and commercial real estate market link, as well as what investors may do to capitalize on this relationship. Navigating the Residential & Commercial Real Estate Markets The residential & commercial real estate sectors are highly correlated. When the commercial real estate market is robust, so is the need for housing. This is due to individuals relocating to locations with high work opportunities. The association arises because individuals prefer to reside near where they work. When there is a lot of employment available in a certain region, people will relocate there to be closer to those jobs. As a result of increased demand for housing in that location, prices will rise. When the commercial real estate market is slow, workers will leave in pursuit of better job opportunities elsewhere. This reduces demand for housing in that location, causing prices to decline. Investors that understand this relationship can take advantage of it. For example, if they feel a region’s commercial real estate market is set to improve, they can purchase residential property in that area before prices begin to climb. By studying the movement of residential vacancies and growth, one may predict how commercial real estate will perform shortly and if the trend will continue. The Market is Altering Because the commercial real estate market is always changing, so is the link between the residential & commercial real estate sectors. For instance, previously, the two markets were highly connected, but today’s factors might allow both markets to appear uninterested in one another. However, the relationship continues to exist. This is due to the globalization of the commercial real estate market, with corporations seeking locations that provide the finest personnel, facilities. And cost-efficiency. As a result, several formerly popular office markets may experience a temporary drop in demand. The shifting market has also had a significant influence on the residential real estate market. To recruit and keep workers in these relatively new office locations, developers are constructing more flats and efficiency that offer high-end facilities while remaining inexpensive & conveniently located near public transit. Understanding these shifts is critical for making educated investment decisions in both the residential and commercial real estate sectors. All who comprehend how both markets are changing will be able to capitalize on possibilities in both industries. Concerned Cities We are talking about the office space-using industries with the biggest concentrations of employment: professional & business services, banking & insurance, information technology, and real estate. These are also populous states with strong rates of economic growth. Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune are among them. Demand for enterprises in the professional and business services sector, which encompasses a broad range of industries like retail, manufacturing, information technology services, and engineering, drives the commercial real estate market in these locations. Let’s have a look at the top and lowest residential real estate prices in the main cities. Over 6 months, the price change in INR per sqft in Mumbai has been roughly 6%, while Bengaluru tops the list with a 9% price change over a year. In terms of commercial real estate, Bengaluru has experienced a 13% increase in rentals per square foot over 12 months, as well as an 11% increase over 6 months. On the low end, Ahmedabad, Chennai, and Kolkata have witnessed the smallest 12-month rent rise, at zero. While the markets in Ahmedabad and Chennai exhibited no change over 6 months, the Delhi-NCR commercial real estate market recorded a 1% decrease. Do not miss: 6 Signs of a Healthy Commercial Real Estate Market What Influences Price Differences? The cost of a house or office is determined by a variety of criteria, like location, quality, size and availability. The location is the most essential aspect in deciding the price of a house or workplace. The price of a home or office is also affected by its quality. Homes and offices in prominent districts that are well-kept are typically more costly than those in less attractive places or need renovation. Size is another essential consideration when determining the cost of a house or workplace. Apart from that, one must consider the market and the preferences of businesses while establishing office sites. Commercial real estate locations might vary greatly depending on the sort of business. Bengaluru has been a solid player in the commercial real estate industry, with rental prices rising significantly throughout half-yearly & yearly periods. Kolkata has a wonderful market for residential real estate, but it does not score well in the commercial real estate market. Affordable housing does not automatically imply that people would flock to the city in search of work. Similarly, while Mumbai’s residential sector has grown rapidly, its commercial real estate market has suffered significantly. Infrastructure is a crucial factor in determining whether or not individuals are willing to relocate for office searches. People are hesitant to take up more space in cities where the time it takes to go to work and back surpasses the norm by a significant amount. Final Takeaway The commercial real estate market is strongly linked to the residential real estate sector. People are more inclined to buy or rent a property when the economy is robust and they are optimistic about their work prospects. This increasing demand for homes raises prices while also encouraging new buildings. The opposite is also true. People are less inclined to buy or rent a property when the economy is stagnant and they lose their jobs. This drop in housing demand pulls down prices and inhibits new buildings. The same may be said about commercial office space. When enterprises cut back or go out of business, they require less space and may frequently rent the space they have. You may make better investing selections if you grasp the

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How to Invest In Real Estate in an Inflationary Environment

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In an inflationary environment, the value of your investment can quickly decrease. However, there are ways you can mitigate these effects and still make money on your real estate property. Inflation has progressed from transitory to destructive, with some analysts even predicating a wage-price spiral akin to the 1970s. Should you rebalance your investment portfolio in preparation for an inflationary climate, allocating part of your money to sectors or asset classes that perform better during inflationary periods? Should you leave your assets alone and let the marketplace determine their long-term fate? The answer is contingent on how long you except inflation to endure and if we are already experiencing rising inflation. What is Inflation? Inflation is one of the most commonly used words in economics. Inflation has thrown countries into protracted periods of uncertainty. Central bankers frequently seek to be dubbed “Inflation hawks”. Politicians have won elections by promising to tackle inflation, only to lose power when they fail to deliver. In 1974, President Gerald Ford declared inflation to be the number one public enemy in the United States. So, what exactly is inflation, and why is it to important? Inflation is the rate at which prices rise over a specific time period. Inflation is often defined as a broad metric, such as the total increase in prices or the cost of living in a country. However, it may also be computed more precisely – for specific items such as food or services like as a haircut, for example. In any context, inflation reflects how much more costly a specific set of products and / or services has grown over a specific time period, most typically a year. How do central banks respond to inflation? Central banks can raise interest rates. When the economy is overheating and inflation is rising, central banks may want to cool things down by raising interest rates. This will make it more expensive for consumers and businesses to borrow money to buy goods & services. Higher borrowing costs discourage consumers from buying things they don’t need; they also discourage businesses from expanding their operations too quickly (because doing so would mean paying higher interest on existing loans.) That’s why we say that raising interest rates helps keep on economy on track – it ensures everyone has enough money coming in so they can their bills without going into debt! What happens during deflation? In contrast to inflation, deflation is when the price of goods and services decreases. A decline in demand or an increase in supply could be to blame for this. For investors, deflation can cause problems because it’s not good for their investments if they don’t have enough money to invest in real estate. Inflation occurs when prices rise over time due to more demand than supply – for example if people are buying more homes than they need because they’re getting richer or their wages are increasing faster than inflation ( which may happen if there’s a recession). How will inflation affect real estate? In an inflationary environment, you may see your real estate investments rise in value. However, that does not imply that it will take place immediately. When a cost increases over time, it is said to be experiencing inflation. It can happen when prices go up for certain items (like food or fuel) or even for things that don’t seem like they need to be priced at all (such as tuition). If your rental properties rent increases by 5% per year, then after 10 years of inflation at 4%, your annualized return on investment will drop from 7% down to 6%. Inflation can also cause the value of your assets to drop. For example, let’s say you buy a house for $200,000 and live in it for five years before selling it for $300,000. That’s a 100% return on investment—not bad at all! But if inflation were 4%, then after paying off the mortgage and property tax bills over those five years, the house would be worth only $216,000 in today’s dollars. You might be thinking that you could just ignore inflation when calculating your expected return on investment. That’s a bad idea for many reasons, but especially because the value of your assets will change over time due to inflation. What are the implications for the investors? Inflation can be a double-edged sword for investors. On the one hand, it’s good news for homeowners because rents and home prices are rising faster than inflation. But on the other hand, it could also mean that interest rates – and therefore mortgage payments – are going up as well. Inflation is a great thing for homeowners who want to sell their houses because it means that they’ll be able to command a higher price when they put their property on the market. But it’s also a good time to buy a home if you’re planning to live in it for at least five years – because inflation will help offset the cost of your mortgage payments over time. Is it a good time to invest in real estate? Many variables go into deciding whether or not it is a good time to invest in real estate. Real estate is a secure investment instrument, and no amount of uncertainty cause by inflation can even significantly lower its value. As a result, when compared to other investment options, it is now seen as the most feasible option. Furthermore, the owner has complete control over the return on investment. Not to mention the tax benefits that come with owning real estate. Furthermore, historically, real estate returns have outperformed those of other asset classes. Inflationary periods are often marked by high mortgage rates, higher material costs, and rising debt expenses. Without a doubt, these obstacles can temporarily stifle but not halt development. Against all odds, India’s market might

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Commercial Real Estate Investment

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1. Why Invest in a Commercial Real Estate? Risk has always been a cornerstone of investment. Many investors think of having a flourishing investment portfolio. But one often finds the hackneyed terms of investments like stocks, bonds, ETFs, Mutual Funds & others. This trend of investment recurs because there is a feeling of security and stability involved in these options. But in reality, there is an element of risk involved in these too. Adding real estate to your investment portfolio will give the much-needed edge. Commercial real estate is considered to be a hard asset with a scarce resource. It has an innate value, and its value appreciates over time. Investing in Commercial Real Estate (CRE) can yield benefits like a new source of cash flow, potential long-term appreciation, and proper diversification of the investment portfolio. Let us try balancing our investments as someone has said- don’t put all your eggs in basket. Let us paint a broad picture by looking at the advantages of investing in Commercial Real Estate.  A potential Source of Income: The earning potential for investment in CRE is much more. If you look at the figures, then the commercial property usually has an excellent annual return on the purchase price depending on the area.  Regular & Consistent Returns: The lease for any commercial property is for long term, a minimum of five years. The owner of the commercial property has an assurance of consistency of returns. Also, lease agreements come with a clause of yearly appreciation of the rental value irrespective of market value making it more attractive.  Choice of Tenants: Commercial Real Estate (CRE), with an excellent location invites tenants like banks, corporates, business houses, or retail shop chains. Dealing with corporates always advantageous as there are no hassles towards daily operations as well as chase for rent.  Zero Furnishing Cost: One of the critical advantages of having a CRE Investment is zero furnishing cost of the property. The investor can hand over the property to the corporate tenant who can furnish the property as per their own choice or taste. The reason behind this is branding, which is essential in a commercial space.  Breaking free from Parallel Earnings: Earning from any particular source of investment may tend to become positive or negative if there is some fluctuation in the financial markets. Whereas, investment in CRE is not influenced by the performance for any other source of investment.  A Concrete Physical Asset: Many people believe that real estate is more physical and tangible because you can touch, see, and feel it. In contrast, stocks, bonds, Exchange Traded Funds (ETFs), & other sources of investment may not be as a feeling appealing for some people as they can’t trust them. In case if there is some damage to the structure created on the invested property, then the land is still available for future use.  Tax Benefits: An investment in CRE can very well have its share of tax benefits by reducing or eliminating some capital gains. For tax purposes, a depreciation in the value of buildings over time can help reduce the yearly taxable income. An investor is depreciating his property for tax purposes while appreciating the same for investment. Thus making it a unique feature of investment in CRE.  Evading Inflation: While other investments such as stocks, bonds, or mutual funds bring in diminishing returns during a boom, investment in CRE can easily avoid the long-term impact of inflation. Should everybody invest in commercial real estate? Is it favorable for everybody? The answer to this question is a personal attribute. But we have seen the many benefits of investment in CRE. The investment can be advantageous in comparison to the investment in residential real estate, but it can get a little trickier as well. However, though the investment in CRE is extremely rewarding, it requires a lot of patience and comes with more risks. 2. How to get started in Commercial Real Estate Investing? CREs are usually leased to tenants for operation of their businesses. CRE includes tenants of all kinds like space for offices, banks, malls, restaurants, and convenience stores or supermarkets. It has become an appealing investment option because of its coherent returns, pliable source of income, and growth prospects. Though investing in CRE is attractive, there are some common hiccups, mistakes, and risks involved. Therefore, it is important to you know how to get started and what should you look out for before investing in CRE especially for the first timers.  Financial Ineptness: It is always advisable to keep a track of your capital as well as Your expenses for having an idea of the amount of cash which you can invest.  Realistic Goals: Every investor has a different set of goals. These goals should be realistic in nature considering all the factors and should have a realistic deadline.  Knowledge of Risks: Create a perfect strategy which determines your risk bearing attitude.  Exercise Due Diligence: A prospective buyer can always conduct thorough research on CRE regarding the actual investment opportunity, availability of finance, property inspection, documents, tax returns, profit, and loss statements from the previous owner, survey reports, feasibility study, and so on.  Updated knowledge of Market Cycles with Latest Trends: To invest in a CRE, it is important to learn how the cycle of the real estate market works and the latest trends in the sector.  Proper valuation of Commercial Real Estate: Every CRE investment depends upon the supply and demand, yield from it, and the overall profitability of each sector as all these parameters vary

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Why is Fractional Ownership A Great Real Estate Investment Option

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Why is Fractional Ownership A Great Real Estate Investment Option Fractional property ownership in India is a new concept that allows individuals to become owners of high-quality commercial properties for a modest amount of money. It is slowly gaining momentum as the modern real estate investment paradigm. One of the many things this pandemic has taught us is that we need to invest wisely. Stocks will crash, and investors will have to either withdraw their money at a loss or wait impatiently for the price to rise. Investors recognize the value of diversifying their portfolios and investing in more stable investment groups. With the stock market uncertain and Fixed Deposits rates dropping, more and more consumers are turning to more reliable forms of investment such as real estate. At the same time, fractional ownership was growing in popularity among Indian investors. Partial ownership refers to partial ownership of an asset, most commonly a high-yield commercial real estate asset. Fractional ownership in India is still in its nascent stages and has not been recognized as a mainstream investment class on par with equities and mutual funds, but it is gaining momentum. To determine whether this investment model will succeed in the future, we must first assess the current situation. Although the concept is relatively new, India’s condominium sector is believed to be worth his US$5 billion. Class A commercial properties in India include office buildings, warehouses, industrial and residential areas. As these require significant funds, CRE is limited to his HNI and Ultra HNI only. Middle-class investors now have to choose between highly volatile stocks and low-yielding FDs. Fractional ownership makes investing in prime commercial real estate affordable and easy. This is exactly what Indian investors have been waiting for. This property investment concept allows Indians to own commercial property according to their budget and also helps break HNI’s monopoly in commercial property investment. Fractional Ownership In Real Estate Investments & Its Challenges As the concept is still new in India, investors should take prudent risks rather than jumping in blindly. Lack of a standardized approach forces investors to rely on companies whose terms are acceptable. As fractional ownership becomes more common in India, the government will want to develop investment regulations to address the issue and govern the use of fractional ownership. Until then, both parties must choose mutually beneficial paths. Fractional Ownership as the Future of Indian Property Investment While most of us wonder if fractional ownership will survive in India, other experts believe this is the future of Indian real estate. Make housing more affordableCommercial real estate has always been considered highly profitable, but due to the costs involved, midsize investors rarely enjoy such high-yield investments. Appropriate IRRPartial ownership not only guarantees a sizeable return, but also an increase in income in both rental yields and capital appreciation. Investing in a solid company through a trusted platform, an investor can expect rental yields to increase his 15%. For example, Asset Yantra offers investors top-notch products that can easily capture her IRR from her 12% to her 21%. Hassle free investment Asset growth and steady growth guaranteedCommercial real estate is one of the few asset groups to recover quickly from the epidemic. CRE and office leasing grew in India while other types of property fell on the backburner during the craze. Additionally, multinationals have opened branches in India, increasing demand for commercial real estate, making it a reliable investment with potential capital appreciation and consistent growth. Long term leasing Unlike residential leases, commercial leases are long-term, with multinational and IT tenants typically renting out space for the long term or renewing leases and never delinquent payments. This ensures a steady stream of passive income. Designed specifically for today’s investor, fractional investments are cost-effective real estate investments that require no time or maintenance on the part of the owner. Asset Yantra , a real estate investment platform, further simplifies the investment process by completing CRE due diligence and putting only the best investment proposals on the table. We also adhere to strict transparency and customer-focused practices. Extreme stock market volatility and losses have resulted in a significant increase in investors looking to invest in CREs and other high quality assets. Commercial real estate has long been a staple asset for institutional investors and very wealthy individuals and, based on our experience to date, can also be reasonably considered a recession-proof investment. Individual investors can take advantage of these secure investment opportunities and pursue profits through fractional ownership. Real estate can be very profitable when handled with care. Fractional ownership can be a great and very stable investment for both young people and seniors approaching retirement. It can even be said that this partial ownership remains.

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