What is Best Commercial Property Investment?

Being someone who takes keen interest in real estate investment, can share my insights on what is the most profitable commercial real estate investment. Commercial real estate (CRE) includes properties used for business purposes, such as offices, shops, or other business spaces. Compared to residential property, commercial properties have a better chance to earn greater ROI, especially in big cities. I have also added some of the types of commercial property for a better understanding.

What Type of Commercial Property is Most Profitable?

1. Raw Land: Buying undeveloped land can be a good long-term investment, especially in areas expected to grow. The returns depend on future development and the real estate market in India.

2. Specialty Properties: These include properties like hospitals, schools, data centres, and entertainment facilities. They cater to specific industries and, if demand is high, can offer good investment opportunities.

3. Office spaces are among the most popular commercial investments, ranging from small units in business parks to large offices in prime skyscrapers. In Bangalore, a major IT hub, the demand for office space is high, making it a profitable choice for investors.

I hope this helps you.

Invest in Commercial Space without Paying Any Brokerage Via NoBroker Commercial Buyer Plan

Investing in commercial property can bring you a lot of money but before investing, you need to know which will be the best commercial real estate investment. Since the vertical of REITs has already been discussed in the above comment, I would like to share with you my approach, which helped me get a good Return on Investment on my commercial property here.

Which are the Best Commercial Properties to Invest in?

Some of the best commercial properties where you can invest in to get good returns are:

Office Buildings: 

Investing in office spaces or buildings in a populated area is a smart move. These properties attract top-tier tenants and offer stable, long-term returns. This is what I did and even after 5 years, I am getting good money from it. 

Industrial Properties: 

With the e-commerce boom, warehouses and distribution centres are more demanding than ever. They promise solid, consistent demand.

Retail Spaces: 

Look for prime locations in bustling shopping areas or malls. These spots benefit from high foot traffic and reliable tenant interest.

Multi-Family Units: 

Mixed-use properties that combine residential and commercial spaces are a great way to diversify your income and ensure stability.

Medical Offices: 

Healthcare is essential, making medical office buildings a safe bet with steady demand and dependable tenants.

So these are some suggestions on the best commercial property investment in India. But before investing, make sure to

• Decide the location of the property

• Choose what kind of property you want to invest in

• Go through all the documents thoroughly

• Understand the market

• Check the property size and you better opt for a big or medium-sized property rather than a small one

• Consider the growth aspects and demand for the property in the future

Considering these suggestions will surely help you get a better idea about the best commercial real estate investment.

Read More:

I have been investing in real estate for a long time now. And I can say that commercial real estate investments are not very common. But if you are thinking of investing in commercial real estate, I can tell you all that I know about the best commercial property investment.

Which is the

Best Commercial Real Estate Investment?

Real Estate Investment Trusts are one of the best real estate investments. Entities that invest in premium real estate are known as REITs. Commercial real estate, retail establishments, medical facilities, data centres, apartment buildings, etc. are among the properties that REITs invest in. These REITs allow investors to purchase units and take part in their expansion.

Why are REITs the Best Way to Invest in Commercial Real Estate?

• Based on the rentals they provide, REITs aim to provide unitholders with a consistent revenue stream. 

• Furthermore, the underlying properties may also increase in value, which means that their holdings may also profit from capital growth.

• Because REIT units are listed on a stock exchange, unit holders have access to liquidity.

Structure of REITs in India

Similar to mutual funds, REITs are categorised into three tiers in India. 

1. There is an Asset Manager who makes choices about properties to be bought or sold, tenants, and rental agreements, among other things. 

2. There is also a Sponsor, who is usually a property developer; 

3. A Trust, which will hold the properties directly in a business or through a Special Purpose Vehicle (SPV); and so on.

In India, completed commercial properties that are available for rental must make up at least 80% of the assets held by REITs. This is one of the major reasons why the

best type of commercial real estate to invest in is REITs.

The remainder may consist of unfinished buildings or other investments. Unitholders are entitled to receive at least 90% of the income generated by a REIT.

I hope now you know which is the best commercial property investment.