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.