Ever thought of buying a commercial property?

Commercial property and high investments are always directly proportional to each other. Well its no scientific law but pure common sense. But my question to you. How many people dream of owning a commercial property? Not many, because an Indian middle class mentality is always on owning a house and one more house and more house. To me if you have one house that’s more than enough and you should probably think of buying a commercial property rather than again investing in house

 

So what commercial property I am talking about here. It’s not easy to buy a complex or big retail showroom but at least think of a small shop in a popular commercial complex. Just to give you an idea, the per square rate of commercial property is at least 2 to 2.5 times more than the residential property rates. But rental of commercial property is far high than that of residential property. On an average, the rental rates are any where between Rs 25 to Rs 40 per square feet for a decent shop in up market area.

Such shops are always in demand considering that there is growing demand for commercial space in Chennai city. It can be rented out right from bank ATM to small retail outlets. I always feel if you are having idea of starting your business one day, then business risk is reduced if you own your own retail space. The largest expense in starting your own business is space rent. There were also few readers who were asking for ideas to start business, I would say it’s always good to own retail space first and then think about starting a business.

I was hunting for a commercial property around 2005 when I was thinking about starting my own restaurant. I lost a good opportunity of not buying one. There are several builders who have their residential projects along with a commercial shop in the front. Of course some of these are big enough and not that easy to own. But always have the intention to buy one and you should own them one day. I remember shops in Spencer plaza phase 2 were just 20 Lakhs when they were constructing it now it’s around 35 – 40 Lakhs. But also depends on other factors like shop visibility etc.

Bottom-line! Keep your options open when it comes to investing in real estate. Don’t always think of investing in apartments, if you have the money then think about commercial property also. You never know you would be starting a franchise of Reliance Fresh or Chawla Chicken or Pizza Hut in it one day.

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