By Soniya Gaonkar on Apr 15, 2022 6:27:33 PM
So, you’ve decided to buy a commercial property in Pune. Kudos to your vision. You are already halfway through your wealth-building endeavors! Now, it is about the next half of the journey, where you have to be mindful and make informed decisions to help create returns for your investment and build sustainable wealth. Here’s a guide for first-time commercial space investors that can help you make a prudent choice.
5-Step Commercial Property Buying Guide for First-Time Investors
From choosing the right location, a good commercial complex to completing documentation, honestly, buying a commercial property in Pune involves many factors. But with this guide, you will have guidelines to make the right investment. Let’s get started then.
Scan Various Locations
Yes. One of the keys to choosing the right commercial property in Pune is to scan various locations and various projects. It is because Pune’s commercial real estate is growing across every direction. But that does not mean every direction, vicinity or location is as promising or remunerative. Precisely, it depends on what kind of property you are looking for and what kind of tenants are likely to come to you.
Accordingly, look for locations and properties that suit your needs. For instance, if you want to invest in a large-sized store, apt for retail brands, you would want to look for commercial projects in Pune at prime locations, well-accessible from all parts of the city, with a promising target audience for retail investors, and a considerable rental earning potential. Keep your objectives at the center of your thought process. That’s crucial to your decision-making process. Get unbiased expert recommendations to choose well.
Assess the Property Plan, Features, and Surrounding Development
Once you shortlist a few commercial projects and properties, assess the property plan with the developer’s salespeople and your realtor, if you’ve hired one at this stage. It is better to hire one, though, as your realtor would know the local market and the plans better than most of them.
Look at various aspects of the commercial space such as the frontend facing direction, natural light, and ventilation, the layout of the space, its visibility (especially if it is intended for B2C), fixtures used, flooring, amenities, modern amenities, security, intelligent features (like automation, security), etc.
Additionally, discuss the proposed development surrounding the project. As a first-time buyer, thinking about this point wouldn’t be as apparent; but ensure you choose a developing vicinity, rather than a completely developed one or the one that has already utilized its potential. Such locations can delay or hamper your return on investment. Instead, choose steadily developing neighborhoods for your tenants to see substantial business potential and have a solid reason to rent your property.
Evaluate the Prevalent Rates, Returns, and Negotiate
You must check the per square feet commercial property rate in the respective vicinity. Have your realtor to get a quick comparison of the per square feet of other commercial properties in the same location or similar ones. Weigh the benefits and decide accordingly. Additionally, get an approximate and practical evaluation of the property in the short and long run, along with reasons supporting the calculations. Doing both these things will help you make an informed choice.
Furthermore, take your realtor along with you to strengthen your negotiation power and discuss various essential aspects related to the price, which might not be apparent, and where cost savings are possible.
Discuss the Assured Returns Aspect
Seasoned investors may have other properties to support the costs of new investment. But as a first-time buyer, yours is a different case. Hence, you must discuss guaranteed returns on the property.
Now, what is assured returns or guaranteed returns? It is an assurance where the seller commits to pay the buyer an assured amount until the property is ready for possession and the formalities for it are completed. It involves signing a contract between you and the seller of the property.
An assured return is a way of recovering your capital investment and keeping away from losses or in a way, to cover delays in project completion and possession. With assured returns, your property won’t remain idle. It will start earning returns for you the day you sign the agreement with the seller.
Let an Attorney Assess the Property Documents
This is an equally essential aspect. Hire a lawyer to assess and verify the documents of the developer concerning the commercial property you are about to buy. It includes checking the property papers, ownership, certifications, approvals, clearances, compliance, etc. Get confirmation and go-ahead from the lawyer on the documents. Go through and understand the agreement papers carefully through your advocate to avoid any legal or administrative challenges ahead.
Book Your First Commercial Property in Pune at Kohinoor World Towers (KWT)
An upcoming commercial project in Pune PCMC, KWT is an amazing commercial investment destination for both seasoned buyers as well as first-time investors. KWT’s salespeople will answer all your questions and help you buy the right commercial property for your needs. The project comprises multi-sized intelligent spaces, coupled with modern amenities to make your investment more worthwhile.
To know more, call +91 20 6764 1818.