Inflation is the increase in the prices of goods and services in an economy due to an increase in demand and low supply of commodities. Inflation can also be translated to a decline in the purchasing power of the economy. Inflation can be caused due to factors like a rise in production costs, a rise in demand, fiscal policies, or money supply.
At the time of inflation, the price of almost every commodity increases. Hence the interest rates and the prices of assets will also increase. Many commodities can benefit you in times of inflation. Certain securities, bonds, stocks, energy commodities, and real estate prices appreciate during inflation. Investors look for such commodities to invest in during inflation. These assets increase income flow which eventually improves the purchasing power.
How did the pandemic cause inflation in the Indian Economy?
The 2020 pandemic of COVID-19 left a great impact on the economies worldwide. All the supply chains were affected because of the lockdown. The Indian economy was no exception, COVID-19 not only affected the prices of commodities but also highly influenced the purchasing power. The city workers who shifted back to their hometown in 2020 and returned in 2022, had low incomes and couldn’t regain spending power due to rising prices.
As a result, the Consumer Price Index (CPI) inflation rushed and remained above 4% for 43 months in a row. Last year, the RBI failed to meet its declaration after average CPI inflation ranged outside the 2-6 tolerance band for three-quarters straight which further affected the Indian Economy.
How can your commercial property in Mohali provide a hedge over inflation?
Purchasing a commercial property in Mohali can safeguard you against inflation. An asset like a commercial property in Mohali has intrinsic value. During inflation, your property in Mohali will benefit you with an appreciation of assets and an increase in interest rates. However, there are many reasons why your commercial property provides a hedge over inflation. But the main reason that has been centrally focused is the rental income.
There will always be a demand for properties in Mohali, regardless of the economic situation as it is one of the growing sectors with developing infrastructure. With an increase in demand, your investments in the real estate sector in Mohali will certainly be fruitful for you. You can gain a lot of returns in the form of capital gains and rental income. This is possible because with the inflation rate increasing, the investors can demand a higher rate of rent and gain more profits. That is why a lot of investors are attracted to commercial properties in Mohali to yield great returns.
Also, we have seen a trend that during inflation, the economy tends to shift to rental properties. This is because a lot of small businesses won’t be able to invest readily in heavy investments that property demands. So the business will look for options with affordable rents. It is certainly a great time for investors to invest in commercial properties in Mohali and cater to this demand. From an investment perspective, this increases the chances of better liquidating your commercial property in Mohali.
Inflation is a quiet thief that deteriorates the purchasing power of the economy. But regardless of inflation, there will always be a demand for suitable properties in Mohali. This demand for commercial properties in Mohali has surged due to the growing infrastructure and the prime location of the projects by the VCS Promoters and Developers. Your investment in commercial properties in Mohali can help you create a shield against inflation. Investing in properties in Mohali can be fruitful for you and earn great profits for you.
VCS promoters and developers invite you to invest in these Projects to earn great returns in the future. The vision of VCS promoters and developers is to provide a luxurious space that redefines elegance to create iconic addresses in Mohali.
Chandigarh is considered as one of the most peaceful and luxurious city to live in. There has been a boom in progress of the City Beautiful because of this. Recently we have seen an increase in setups of MNCs, IT companies, and various startups. Hence, there has been a shift of population towards the Tricity for better job opportunities. Mohali, the city adjoining Chandigarh, offers great landscapes for you to invest in Commercial properties. With its growing infrastructure, Mohali has become an attractive destination for businesses to expand.
Mohali is the upcoming ‘Startup Hub’ inviting a lot of business owners to expand their ventures. A separate part of the city has been allotted for the Industrial Area. Promising to bring in a lot of opportunities, the best place to invest is commercial properties in Mohali.
Reasons to invest in Commercial Properties in Mohali
While selecting the commercial property to invest in you need to look over many factors. Like the location advantages, size of the property, and many more. Let’s study a few reasons why this is the correct time to invest in commercial property in Mohali now:
1. Prime Location
Mohali has many upcoming projects from different promoters like, VCS Promoters and Developers, that are located in the heart of the city. These projects are located at a prime location to provide all the required amenities to your business hassle-free. Also since it has a growing hub, you have access to new clientage for your business to cater to different needs. This certainly adds to the advantage for your business.
2. Growing Infrastructure
In 2004, Mohali was declared as a separate city. Since then this city has shown tremendous growth in terms of infrastructure with the rise in population, establishment of industrial areas, scope for startups, growing hub for IT companies, etc. These contribute to building a well-planned and strategically growing infrastructure.
3. Affordable Investments
Since Mohali is still in its growing stage, the prices of commercial properties and residential properties are lower in comparison to a fully developed city. Your investment in commercial properties in Mohali would be very fruitful for you, as the price of the property would be lower and you will gain capital appreciation profits also in the future.
4. Secure Investment
Investing in commercial properties in Mohali can be safely considered as a secured investment. Since Mohali is a growing city, the value of the property is forecasted to increase at a rapid rate in the coming years. Therefore, we can say that investing in real estate in Mohali would be a safe and secure investment for you.
Investing in commercial properties in Mohali will certainly prove to be a fruitful investment for you. The basic idea of investing in Commercial properties in Mohali is to earn great incomes out of it. With the growing businesses and IT hub, Mohali has seen an increase in population here for good jobs. So with the growing population, expanding your business in Mohali can prove to be a useful decision for you.
Projects built by VCS Promoters Developers are situated in the heart of the city of Mohali. The luxurious spaces and exceptional designs are the perfect home for your new venture. If you are still looking for options to invest in the right commercial property in Mohali, look no further. The VCS Promoters Developers have the most appropriate destination which is ready to cater to all the requirements for your business needs.
Indian real estate sector is one of the fastest growing industries in the business world offering great returns on investments. The real estate industry primarily has two categories; Residential Real Estate and Commercial Real Estate. The residential properties include all the housing properties and the commercial properties include all the buildings used for business-related purposes.
Commercial property, also called commercial real estate, is real estate planned to generate a profit, either from capital gains or rental income. While there are ways to put commercial properties in Mohali to use, in most cases, they are leased to tenants, used as workspaces, and used for income-generating activities. The owners of these buildings or lands must pay additional taxes in compliance with the government’s policies and laws.
Future of Commercial Real Estate:
Investing in commercial properties in Mohali has become more exciting and accessible thanks to options like fractional ownership and ‘Real Estate Investment Trusts’ (REIT). In the form of rentals, commercial properties in Mohali can generate a consistent income flow. However, these investments are only beneficial when undertaken in the long term. Therefore, investors should first examine their financial health, fiscal goals, risk-bearing capacity, and profit-generating timelines.
The Indian Commercial Real Estate Market size is estimated at USD 33.62 billion in 2023, and is expected to reach USD 87.57 billion by 2028, growing at a CAGR (compound annual growth rate) of 21.10% during the forecast period (2023-2028).
Source: Mordor Intelligence
Factors to consider while investing in Commercial Properties
Like every other business, investing in commercial properties in Mohali also has certain challenges to overcome. There are a lot of factors to consider while investing in commercial properties in Mohali. Commercial real estate investment in Mohali can be rewarding and has the potential for great returns, but there are also a lot of risk factors and other things to consider while investing in the asset. Certain risks and other factors before considering a commercial property are:
1. Asset liquidity
Liquidity of assets refers to the ease of converting the asset into cash for cash flow. several factors determine how liquid a property is like property type, tenants, location, lease length, market value, and whether or not the property has any unique features that may make it difficult to repurpose for another use.
2. Location and Size of the Land
The right location and size can significantly impact the long-term value of commercial sites in Mohali and improve its prospect of generating considerable income for years to come. It is a key determinant of the demand and viability of commercial property in the market and plays a vital role in attracting potential tenants or customers.
3. Financing options
There are multiple options for financing your commercial property investment in Mohali like self-financing, traditional bank loans, small business administration(SBA) loans, real estate investment trust(REIT), crowdfunding, etc.
4. Taxation incentives
Investing in commercial buildings comes with several tax benefits. If you secure a business loan for purchasing any type of commercial property, you can claim a deduction of 30% of the taxable amount invested in various construction activities, including repairs and building materials. When you earn income from your Commercial Properties, it falls under the ‘Income from House Property’ category and is taxable annually.
5. Potential returns
It is very important to consider the potential return on investment (ROI) before you invest your money in any form of business investment. Hence, it is equally essential to study beforehand and know the different forms of ROI possible if you invest in commercial properties in Mohali.
6. Land Appreciation
Commercial properties in Mohali can yield 8-9% or higher, along with appreciation, resulting in overall returns of 15-16%, potentially. Hence, it is very profitable to invest in Mohali and earn a good income from your investments.
If you are looking for a safer and smarter investment to earn great and assured returns, it is a sign for you to think about your options for investing in commercial real estate in Mohali. Commercial real estate investment offers stable returns along with favorable policies and tax benefits. The predictions for the commercial sector to grow are very high in the coming years proving it to be one of the best forms of investment. The commercial properties in Kharar offer spacious and luxurious office space to set up new office space and plan the expansion of business.
How has Technology evolved for Builders in Mohali?
The Internet was introduced to connect computers and ease the exchange of information between them. Over time, it evolved into the vast network that we use today for communication, information sharing, commerce, and much more. Technology has become an integral part of our lives. From smartphones to computers, these technologies have become essential, and builders in Mohali rely heavily on them to enhance their services and provide another layer of luxury for your investment in real estate in Mohali.
What is Artificial Intelligence or AI?
Artificial intelligence (AI) is the ability of machines to replicate or enhance human intellect, such as reasoning and learning from experience. Artificial intelligence has been used in computer programs for years, but it is now widely used in many other products and services to provide better experience for the consumer. As the hype around AI has accelerated, vendors have been scrambling to promote how their products and services use it.
How AI has impacted the Real Estate Companies in Mohali?
Technology is advancing every day and it’s interesting to see how different industries adapt to it. These advancements in technology have also impacted the builders in Mohali. The development of real estate technology has changed the face of the industry itself. We can also say that Real Estate is a technologically oriented industry as Artificial Intelligence enables human-like intelligence and streamlines property searches, makes price predictions, analyzes markets, automates property management, enhances the overall efficiency of buying and selling properties, and more.
Undoubtedly, the growth of technology has resulted in substantial improvements in the operation of online buying and selling platforms in recent years for the real estate companies in Mohali. It has made easy access to track potential tenants or available properties for everyone to buy, sell, or lease any property from builders in Mohali. Today, buying, selling, or even renting a property has become a cakewalk for everyone, unlike in the old days. Builders in Punjab can now easily cater to the demands of their clients by building efficient systems that can analyze the needs and show suitable results in no time.
How does AI benefit Real Estate?
1. IoT Integration And Smart Buildings:
IoT (Internet of Things) Integration is the process of connecting sensors and objects with your applications and databases and sending messages over the Internet. Once connected, you can implement end-to-end automation that helps you make full use of your equipment. IoT devices can enhance building automation and management systems in commercial and residential buildings. Access control, security, energy, and water management can be integrated to allow facility managers to optimize resources and improve operations.
2. Detailed Data:
Data analytics and artificial intelligence (AI) have become essential tools for real estate professionals. By leveraging big data, predictive analytics, and AI algorithms, we can now make more informed decisions in property investment, pricing, and market trends. These technologies empower us to understand customer preferences, optimize portfolio performance, and forecast market movements more accurately.
3. Virtual and Augmented Reality:
While virtual reality is often associated with gaming, the technology has a wide range of practical uses and has found its way into a variety of professional fields, including real estate. It helps potential tenants and homebuyers inspect a property at their convenience and from any location. The potential buyers can have a virtual tour of the property before investing. Augmented reality helps streamline the processes, especially during pandemic situations, such as Covid-19. Everything came to a standstill when the COVID-19 pandemic struck. As per the protocols, the buyers were not able to visit the property to avoid transmission, making it impossible for people to see the property in person. On the other hand, virtual reality allows consumers to view the property online without ever having to interact with anyone in the actual world.
4. Sustainability and Green Technologies:
Sustainability is one of the biggest concerns in the real estate industry. Advancements in green technologies, such as solar panels, energy-efficient HVAC systems, and smart water management, are transforming buildings into environmentally conscious places. Sustainability not only reduces the environmental impact but also enhances property value and attracts eco-conscious investors.
5. Identifying Qualified Leads:
In the Real Estate industry, the companies get a whole list of potential buyers who are interested in investing in certain properties. Similarly, these investors also have certain leads for properties that have suitable portfolios as per their requirements. With the help of Artificial Intelligence Tools, the buyers and sellers can easily filter the qualified and the most appropriate leads which is suitable for both. The Qualified leads are focused and an immediate follow-up can be taken while the unqualified leads are set aside. This is very helpful for time management and fast-tracking the investment process.
The integration of Artificial Intelligence (AI) in the real estate industry has led to a transformative era, enhancing efficiency and service quality for both builders in Mohali and investors. The use of AI technologies, such as predictive analytics and machine learning algorithms, has empowered real estate professionals in the Tricity region to make data-driven decisions. This has significantly streamlined the process of identifying potential residential properties for sale and assessing market trends. AI’s ability to analyze vast datasets swiftly has provided builders in Tricity with invaluable insights, enabling them to optimize construction processes and allocate resources effectively. Moreover, AI-driven chatbots and virtual assistants have improved customer interactions and responsiveness, leading to enhanced customer satisfaction. The real estate landscape’s synergy with AI demonstrates how technology is reshaping traditional practices, making the real estate companies in Mohali more dynamic and responsive to market demands.
Investment in a commercial property in Mohali is an excellent and wise option, which offers guaranteed good returns. It is also safer than other investments such as stocks or other kinds of investment. Although commercial investment requires larger capital than other investments, the long-term returns are good as per the expectations because it continues to generate passive income.
Before you invest your hard-earned money in a commercial property in Mohali, you need to consider some vital factors.
1. Proper Market Research
Proper Market Research before investing in commercial property in Mohali is the essential part. It will help you to find the best property at your desired location whether that commercial property is used for yourself or resale purposes. Today, Tier II and III cities are becoming India’s real estate growth search engines and offer better returns on real estate. Be aware of upcoming real estate projects in your area so that you can never miss the opportunity.
2. Review the location
Once you finalized the location, you need to verify the features of the location such as Road connectivity, railways, public transportation, metros, and nearby airports, and also make sure that the market is already established or newly developed.
In case such kind of facilities are not present in the researched property, then this kind of investment is good for the long term and the best part is you will get the under-developed property at lower prices.
3. Types of commercial property
What kind of property do you want to invest, in once you have reviewed the location and other connectivity modes/facilities? Today, commercial properties range from SCOs to retail shops, office buildings, industrial complexes, etc. It is also possible to earn rent from a residential property.
4. Consult an expert
New in the real estate industry and don’t have an idea where to invest, then definitely, you definitely have to consult with the experts. There are many consultants, lawyers, commercial property builders, and developers who can guide you throughout the entire investment. This will help you save time and botheration and even save the travel and other cost.
5. Check the necessary approvals
Ensure the builder has received all the necessary approvals from the local authority. Check out this checklist.
- Sale Deed
- Mother Deed
- Building Approval Plan
- Khata Certificate and Khata Extract
- Encumbrance Certificate (EC)
- Betterment Charges Receipt
- Power of Attorney (POA)
- Latest Tax Paid Receipt
- Check the RERA (Real Estate Regulatory Authority) approval
6. Evaluate the layout plan
Layout plans stand that the design and style of the building are constructed. A sound layout plan includes the plot’s size with the dimensions of the building lines. The layout plan also includes proposed roads, entry/exit gates, security systems, drains pipelines, water pipelines, public facilities, electricity connections, parking spaces, parks, etc.
7. Lease structure
Leasing the property, then it will help you negotiate the tenure, maintenance, and repair of the property detail, and lock in period and tax associated with the property. For a better return, a long-term investment is better than the short-term lease.
8. Choose the right builder
Loyal and reliable builders are one of the most important parts of buying a commercial property in Mohali. This will reduce the risk of losing money that is going to be invested. A builder with a legacy of delivering quality projects will help you to lease out the property easily.
9. Acknowledge the risk factor
As you invest, there comes a certain amount of risk. Before investing beware the risk factors. You should never invest if you can’t afford the losses while running a business.
Credit is the most common risk in investment such as you can pay the rent on time and the other risk is location. Even you don’t have an idea the location is good for your business or not.
Before purchasing a commercial property in Mohali from a reliable builder such as VCS Promoters & Developers, you should verify the physical infrastructure of the property. Basic amenities are available or not.
Evaluating the neighborhood when choosing a business facility. When selecting a location, you should consider customers, suppliers, employees, parking, and nearby competitors and businesses. Environmental issues and the character of your community may also influence your facility selection.
If the market is already established, then you get the review or information of your neighbors. Sometimes the neighbor business impacts your sales for many reasons.
It is a hit-and-miss system when the market is new or under construction.
12. Assess the rental earnings after tax and insurance
Calculate your expected earnings from the business property if you rented. You can get the expected earnings from the current market rent. Keep in mind it will increase in the future.
13. Value Assessment
The value of a property needs to be assessed before it can be purchased. The cost approach, the market approach, the income approach, or the sales comparison approach can all be used to calculate the value assessment.
It is good to invest in commercial property in Mohali. Investing in commercial property offers high returns, a low level of risk, and long-term value. In addition to tax benefits and security, commercial real estate offers high appreciation rates and continuous cash flow.
Investing in commercial buildings in Mohali, like any other real estate investment, should be carefully considered based on various factors. Here are some reasons why you might consider investing in commercial real estate in Mohali:
- Economic Growth: Mohali, like many other cities, may be experiencing economic growth, leading to increased demand for commercial spaces. Look at the overall economic trends, job growth, and business development in the region.
- Infrastructure Development: If there are significant infrastructure developments, such as new highways, airports, or other transportation improvements, it can positively impact the value of commercial properties in Mohali.
- Population Growth: A growing population often translates to increased demand for commercial spaces, especially in areas that are becoming more urbanized.
- Business Opportunities: Mohali may be a hub for specific industries or businesses. Understanding the local business landscape and the types of commercial properties in demand can guide your investment decisions.
- Government Policies: Government policies and incentives for businesses can impact the demand for commercial spaces. Check if the local government is offering any incentives for businesses to set up in Mohali.
- Educational and Healthcare Institutions: Proximity to educational institutions and healthcare facilities can attract businesses, leading to increased demand for commercial spaces.
- Investment Potential: Evaluate the potential for rental income and property appreciation. Mohali’s real estate market conditions, historical price trends, and future growth prospects should be considered.
- Diversification: Commercial real estate can offer diversification in your investment portfolio. It often has a different risk and return profile compared to residential properties or other asset classes.
- Stability and Long-Term Income: Commercial leases often have longer terms compared to residential leases, providing a more stable and predictable income stream for investors.
- Market Research: Conduct thorough market research to understand the demand and supply dynamics in the commercial real estate market in Mohali. Analyze vacancy rates, rental yields, and other relevant metrics.
It’s important to note that investing in real estate carries risks, and it’s advisable to consult with real estate professionals, financial advisors, and conduct due diligence before making any investment decisions. Additionally, real estate markets can be influenced by various external factors, so staying informed about economic and market trends is crucial.
Real estate investment is one of the huge investments that a person does in his life. Doesn’t matter how big or small the investment is, but investing your earnings somewhere is a decision you have to take after a lot of thinking. People are afraid that what if they got scammed? What if the property does not give you better returns? What if…?
Don’t worry, the main agenda of this topic is how to save yourself from investment scams in Real estate. Let’s get started.
What is a Real Estate Scam?
Real Estate scam is a scam where scammers use Real Estate as a cover to steal your money in the most authentic way possible. According to the FBI, more than 13,600 people were victims of real estate or rental fraud in just 1 year.
How to identify if you are being scammed?
If you are a first time buyer then you are the most compatible for this scam. Although there are a lot of signs that one might ignore. For eg. There will be lack in documentation, Pressure to act immediately, Unrealistic promises and many more. Doesn’t matter if you are going to pay them altogether or loan the amount.
Some scams occur after you buy the property, like they will allot you a house with less or no amenities nearby and have told you that they will get the work complete in a few weeks. But as soon as you and others invest or buy the property, the scammers never complete the incomplete projects which leads to weak securities, theft, no proper facilities etc.
How to avoid Real estate scams?
- Always consult or hire a Licensed Real estate company or Realtor.
- Always keep your personal information private, like your identification documents, account details.
- If you already bought a house, and there are some last minute changes, don’t rush, verify the changes and only then take actions.
What to do when you get scammed?
- Contact the service provider.
- Report the local police station with whatever documents or emails they have sent you.
- File a F.I.R. or a writ petition against the person or company in your regional court. You can also read the “TRANSFER OF PROPERTY ACT 1882, because the matters of property fraud came under this act.
Real estate scams are real. Real estate scams are the worst scams that can lead to a person losing his lifetime earnings. It is important to be cautious and watchful when dealing with real estate scams. It is crucial to only hire certified and skilled professionals. If you think you are being scammed or have been scammed, immediately report the scam and get help.