Have you ever considered investing in a commercial Property?

We Indians have traditionally placed a high value on owning residential property as a  measure of social status and financial stability. However, there is a growing trend among millennials to invest in commercial real estate instead. As this shift in outlook occurs, it is important to understand the different types of commercial properties available for investment.  

When we mention a commercial asset, it refers to a property or piece of real estate that is used for business or income-producing purposes, such as an office building, retail store,  or industrial facility including a Warehouse.  

There are several reasons why commercial assets may be considered a better investment than residential assets. Here are a few benefits over residential asset:  

  • Higher potential for rental income (cashflow): Commercial properties can generate higher rental income than residential properties, as they are typically leased to businesses that can afford to pay higher rents. This can result in higher returns for investors.  
  • Longer lease terms (income stability): Commercial leases tend to be longer than residential leases, which can provide more stability and predictability for investors.
  • Higher Appreciation potential: Commercial properties can appreciate in value over time, just like residential properties. However, they may have a higher potential for appreciation due to factors such as location, zoning, and overall economic condition.
  • Tax benefits: Commercial properties can provide tax benefits to investors, such as deductions for depreciation, cost segregations, and interest expenses. These can reduce investors tax liability.  
  • Diversification: Investing in commercial properties can help diversify an investor's  portfolio and reduce risk .

However, it's worth noting that commercial properties also tend to come with more responsibilities and may require more expertise to manage. Additionally, high-grade quality commercial properties may also be more expensive to purchase “directly” and maintain, which can make them less accessible to small investors.  

It's important to evaluate your own financial position, risk tolerance, and investment goals before deciding whether to invest in commercial or residential assets. We at Promore look forward to connect with you to explore your profile and find the best suitable asset for higher returns.  

Our motto: One life…..Live life at your terms.


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