Invest in Kochi

What is Commercial Real Estate ?

Commercial real estate refers to properties that are used for business or income-generating purposes. It encompasses a broad range of property types, including office buildings, retail spaces, industrial warehouses, hotels, shopping centers, and mixed-use developments.

Does Commercial property give better return ?

Yes, Commercial property typically gives a higher rental yeild than a residential property. That means you get higher rental every month compared to a residential property of the same value. In addition it also gives appreciation benefit in the long run, simiar to residential. Hence, commercial real estate is generally considered a better investment option.

Why is CRE considered better investment options ?

Commercial real estate yields better appreciation in a significantly lower time period compared to residential real estate. Also, the rental yield is generally twice or more realised by an investor from a residential property.

What is preleased property ?

A property already leased out at the time of buying is called preleased property. Generally the term is used for commercial properties & Land. At the time of buying such a property the lease agreement is also transferred to you along with the ownership rights of the property.

What is lease duration ?

Lease duration is the number of years for which the property is leased out to the current tenant. It is very important for you to check the lease duration before buying a preleased property. Generally investors prefer longer lease duration, because it provides an asurance of decided monthly rentals for a longer period of time.

What are the benefits of a preleased property?

If you purchase a preleased property, you do not have to burden yourself with finding a lessee initially. You stand to realise pre-decided rentals from day one of buying the preleased property.

Why should I invest in preleased options ?

Preleased options are preferred options for investors in commercial domain because of 2 major reasons - a) No hassle of looking out for tenants immidiately b) Ensured returns on investment from day 1 pf purchase c) Reduced risk since the place is already rented out

What does Assured Return means?

The term 'Assured returns' is used by builders of newly launched or under construction projects. Under this offer, builders assure a percentage of your spend as a return till the possession is given.

Why does builder offer this ?

Builders offer an assured return scheme as they find it easier to raise funds on a low rate of capital from retail investors when compared to market interest rates. Moreover, the scheme facilitates builders to quickly sell their inventory and realise a profit.

What are the benefits?

Low-risk investment owing to immediate returns with no maintenance cost.

What should be checked before investing in the scheme?

It is imperative to make sure that the project is registered with the Real Estate Regulatory Authority (RERA). The Securities and Exchange Board of India (SEBI) has warned against unregulated deposits and has termed them as Ponzi schemes

Why should I invest in assured return options?

This is an attractive investment option as it offers immediate returns with lesser risk.

What is commercial land ?

Commercial land refers to the area of a city, town, or municipality set aside for commercial or business purposes, including office buildings, retail stores, restaurants, and hotels, among others.

Why Commercial Land is good for investment ?

Commercial land has the potential to generate higher returns than residential land or other types of real estate investments. This is because commercial land tend to generate higher appreciation over time.

How is commercial land different from residential land ?

Residential land is zoned for housing, while commercial land is zoned for business use. Commercial land is subject to specific zoning regulations and guidelines set by local authorities. Residential land is also subject to zoning regulations but with a focus on creating livable neighborhoods.

What are some important legal considerations when buying commercial land ?

Legal considerations when buying commercial land include zoning laws, environmental regulations, building codes, and any existing easements or other restrictions on the property.

Why invest in shops & offices ?

A shop and office in a good location are generally in demand, thereby yielding higher price appreciation over the period as well as high rental. Notably, shops and offices are high-value passive income generators in the long-term.

What is the average rental yield from shops & offices ?

The average rental yield of shops in malls or office in commercial spaces varies between 6 to 8 percent annually

How much capital is needed to invest in a shop/office ?

Considering various factors such as inventories and the lowest price offered by the builders of commercial new projects, you may be required to invest a minimum of Rs 15 lakhs.

What is the difference between office space and shop ?

A retail shop is generally more expensive than an office space. It offers a higher rental yield when compared to the office. However, the lease of the office space is usually for a long period and can be easily renewed.

What are Shop cum Offices

Shop-cum-office or SCO plots refer to commercial plots designated for building multi-level shop-cum-office complexes. The plots usually come with pre-approved building plans and are suitable for multi-storey commercial buildings.

Is SCO good for investing?

Investing in SCO plots can be a good opportunity for investors who are looking to invest in commercial real estate as they offer the potential for steady rental income and capital appreciation.

Where can I invest in SCO?

SCO plots are typically available in commercial or mixed-use areas of urban or suburban locations. These are largely available in Gurgaon and nearby areas due to their prime location, offering numerous business opportunities.

What should be checked before investing in SCO?

It is important to conduct thorough research and due diligence before investing in SCO plots. This is for ensuring that the property is located in a good location, has proper zoning and approvals, and is likely to generate good returns on investment over the long term.

What is Lease Guarantee ?

A lease guarantee is an official agreement between a tenant, landlord, and third party who takes responsibility for any payment defaults by the lessee/tenants.

Why invest in Lease Guarantee projects ?

Investing in lease guarantee projects can be a prudent investment decision as these projects ensure that the landlord receives a consistent flow of rental payments even if the property remains vacant.

How is the Lease Tenure Structured ?

Commercial leases are generally structured over nine years with rent escalations every three years. Escalations are meant to index the rent to inflation.

What are New Launch Projects ?

New launch projects are properties that are offered for sale or lease to the public for the first time after regulatory approvals are completed.

Why this is Investor friendly ?

New launch projects are typically marketed by real estate developers or agents who offer lower prices, incentives, or discounts to early buyers. Such projects enjoy significant price appreciation from the new launch phase to the completion phase.

What are Pre-Launch Deals ?

In pre-launch deals, a builder usually sells a part of the project, while they are in the process of obtaining regulatory approvals, at a remarkable discount rate compared to the market price.

What is payment plan?

Payment plans are offered by builders allowing homebuyers to pay smaller portions of payments over a specified period. Under such payment plans, the total debt is usually split into 2-3 parts. Notably, only a small percentage of the payment is expected upfront or at the time of property booking and the remaining parts are tied to a project completion stages or possession date.

Is it offered by brokers also?

No, payment plans are generally offered directly by Builders.

How it helpful for a buyer?

The buyer ends up paying only a small % of the total payable amount in the beginning. This makes the investment easier for any buyer. Also, contruction linked payment plans or possession linked payment plans reduces a buyer's risk

What types of offers are given by builders?

In general, special offers given by builders could be anything from price discounts, gifts, vouchers, payment plans, assured return, and lease guarantee.

When is this offer available?

Special offers are generally available during the new launch phase of any project and may only apply to specific units or properties.

Do special offers affect the property's value or quality?

Special offers should not inherently impact the value or quality of the property. However, it is essential to conduct due diligence to ensure that the special offers do not compromise the property's quality or lead to hidden costs.